WW International, Inc. Announces First Quarter 2025 Results

• Total End of Period Subscribers of 3.4 million, including 135 thousand End of Period Clinical Subscribers
• Revenues of $186.6 million, down 9.7% vs. prior year period, including Clinical Subscription Revenues of $29.5 million, up 57.1% vs. prior year period
• Subscription Revenues Per Paid Weeks up 4.8% vs. prior year period
• Gross Margin of 71.2%, up 450 basis points vs. prior year period; Adjusted Gross Margin of 71.0%, up 311 basis points vs. prior year period
• Net Loss of $72.6 million; Net Loss Margin of 38.9%, improved from Net Loss Margin of 168.4% in the prior year period; Adjusted EBITDAS of $26.9 million; Adjusted EBITDAS Margin of 14.4%, up from Adjusted EBITDAS Margin of 3.5% in the prior year period
• Cash and cash equivalents of $236.3 million, including borrowings on the Company’s revolving credit facility of $171.3 million
• Substantive discussions with lenders and noteholders on a plan of reorganization to significantly reduce debt expected to reach resolution imminently
  

NEW YORK, May 06, 2025 (GLOBE NEWSWIRE) -- WW International, Inc. (NASDAQ: WW) (“WeightWatchers,” “WW,” or the “Company”) today announced its results for the first quarter of fiscal 2025 ended March 29, 2025.

"We are making progress on our strategic priorities with continued momentum in our Clinical business, while laying the foundation for long-term, sustainable growth," said Tara Comonte, President and CEO. "As the weight management landscape evolves, we believe our unique combination of science-backed behavioral support, clinical care, and engaged community positions us to deliver superior outcomes."

"As we navigate this period of significant reset, we remain focused on our key priorities: delivering a unified and engaging member experience, revitalizing our brand, innovating and expanding adjacent revenue streams, and driving operational excellence and efficiency throughout the organization. As we execute our strategy with discipline, we are confident in our ability to stabilize the business and build the path back to growth, continuing our six-decade legacy of helping millions achieve healthier lives."

"We demonstrated continued strong financial discipline in Q1," said Felicia DellaFortuna, CFO. "While Clinical revenue grew 57% year-over-year, revenue headwinds in our Behavioral business continued. Despite overall revenue declines, we increased Adjusted EBITDAS by $20 million year-over-year, reflecting our team's focus on operational efficiency and strategic cost management. Looking ahead, we are engaged in substantive discussions with our lenders and noteholders in order to take decisive actions with our capital structure and remain focused on strengthening our financial foundation to position WeightWatchers for future success.”

First Quarter 2025 Consolidated Results

Q1 2025 Financial Highlights

• End of Period Subscribers in Q1 2025 were 3.4 million, down 14.2% versus the prior year period, driven by declines in the Behavioral business. End of Period Clinical Subscribers of 135 thousand increased 55.2% versus the prior year period.
  
  
• Revenues in Q1 2025 were $186.6 million. Q1 2025 revenues decreased 9.7% versus the prior year period driven by headwinds in the Behavioral business from lower Incoming Subscribers and recruitment challenges. Additionally, Subscription Revenues were negatively impacted by a higher mix of Behavioral Subscribers within their initial, lower-priced commitment periods. Subscription Revenues benefited from $29.5 million of Clinical Subscription Revenues, which increased 57.1% versus the prior year period primarily due to higher recruitments and Incoming Subscribers.
  
  
• Subscription Revenues Per Paid Weeks in Q1 2025 were up 4.8% versus the prior year period, due to strong growth in the Company’s Clinical business.
  
  
• Gross Profit in Q1 2025 was $132.9 million, compared to $137.8 million in the prior year period. Adjusted Gross Profit, which excluded the net reversal of $0.4 million of restructuring charges related to prior year restructuring plans, was $132.5 million. Adjusted Gross Profit in Q1 2024, which excluded the net impact of $2.5 million of restructuring charges related to prior year restructuring plans, was $140.3 million.
  
  
  • Gross Margin in Q1 2025 was 71.2%, compared to 66.7% in the prior year period. Adjusted Gross Margin in Q1 2025 was 71.0%, up from 67.9% in the prior year period, driven primarily by actions to reduce the fixed cost base across the business.
    
    
• Net Loss in Q1 2025 was $72.6 million compared to a Net Loss of $347.9 million in the prior year period. Adjusted EBITDAS in Q1 2025 was $26.9 million compared to $7.2 million in the prior year period due to continued cost discipline and execution of the Company’s cost savings initiatives as well as lower marketing spend. Q1 2025 Adjusted EBITDAS Margin was 14.4% compared to 3.5% in the prior year period.
  
  
• Non-Cash Intangible Impairment Charge: During Q1 2025, the Company recorded a non-cash impairment charge of franchise rights acquired of $27.5 million. This impairment was primarily driven by the Company’s weighted average cost of capital reflecting market factors, including higher interest rates and the trading values of the Company’s equity and debt, and, to a lesser extent, business performance in the Behavioral business.
  
  
• Income Tax Expense in Q1 2025 was $22.6 million, which reflected an increase in valuation allowance against U.S. deferred tax assets, in relation to the Company’s forecasted full-year 2025 financials. In the prior year period, income tax expense was $55.4 million.
  
  
• Diluted Net Loss Per Share in Q1 2025 was $0.91 compared to Diluted Net Loss Per Share of $4.39 in the prior year period. Q1 2025 Adjusted Net Loss Per Share, which excluded $0.33 of a non-cash intangible impairment charge, $0.10 of costs related to review of strategic alternatives to strengthen our balance sheet, and $0.01 net impact of restructuring charges, was $0.47. In the prior year period, Adjusted Net Loss Per Share, which excluded $3.05 of non-cash intangible impairment charges and $0.05 of net impact of restructuring charges, was $1.29.
  
  • Additionally, certain other items affected year-over-year comparability:
    • Q1 2025 included $0.43 per diluted share negative tax impact arising from the impact of a valuation allowance.
    • Q1 2024 included $1.22 per diluted share negative tax impact arising from an unusually high negative annual effective tax rate as a result of a valuation allowance and small pretax loss reflected in the Company’s full year fiscal 2024 guidance.

Balance Sheet, Liquidity, and Other Updates

• Cash and cash equivalents balance as of March 29, 2025 was $236.3 million, which included borrowings on the Company’s revolving credit facility of $171.3 million.
• The Company is engaged in substantive discussions with an ad hoc group of its lenders and noteholders, including the negotiation of a plan of reorganization to significantly reduce debt obligations and currently expects that agreement will be effectuated through a prepackaged filing under Chapter 11 of the U.S. Bankruptcy Code by the Company and certain of its subsidiaries, which is anticipated to occur imminently.
• Transaction Costs: In Q1 2025, the Company recorded $10.8 million of costs related to review of strategic alternatives to strengthen the Company’s balance sheet.
  

Full Year Fiscal 2025 Guidance

• The Company is not providing full year fiscal 2025 guidance at this time.
  

Statement regarding Non-GAAP Financial Measures
The following provides information regarding non-GAAP financial measures used in this earnings release:

To supplement the Company's consolidated results presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company has disclosed non-GAAP financial measures of operating results that exclude or adjust certain items. Gross profit, gross margin, operating loss, operating loss margin, net loss, net loss margin, diluted net loss per share, and selling, general and administrative expenses are discussed both as reported (on a GAAP basis) and as adjusted (on a non-GAAP basis) to exclude, as applicable in a given period: (a) the net impact of the Company’s previously disclosed restructuring plans; (b) the impact of impairment charges for the Company's franchise rights acquired; and (c) costs related to the review of strategic alternatives to strengthen the Company’s balance sheet. The Company also presents in the attachments to this release the non-GAAP financial measures: earnings before interest, taxes, depreciation, amortization and stock-based compensation (“EBITDAS”) and EBITDAS margin; EBITDAS as further adjusted for the items described above as well as former CEO separation expenses and other items that management believes are not indicative of ongoing operations (“Adjusted EBITDAS”) and Adjusted EBITDAS Margin; total debt less unamortized deferred financing costs, unamortized debt discount and cash on hand (i.e., net debt); and a net debt/Adjusted EBITDAS ratio. In addition, the Company presents certain of its financial results on a constant currency basis in addition to GAAP results. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company calculates constant currency by calculating current-year results using prior-year foreign currency exchange rates.

Management believes these non-GAAP financial measures provide useful supplemental information for its and investors' evaluation of the Company's business performance and are useful for period-over-period comparisons of the performance of the Company's business. While management believes that these non-GAAP financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies. See "Reconciliation of Non-GAAP Financial Measures" attached to this release and reconciliations, if any, included elsewhere in this release for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures.

About WW International, Inc.
WeightWatchers is the global leader in science-backed weight management, providing an accessible, holistic model of care through our #1 doctor-recommended Points® Program, clinical interventions including weight-loss medications, and community support. Since 1963, we have empowered our millions of members to build healthy habits to live longer lives. Our innovative, trusted spectrum of solutions provides members with the tools and resources they need to reach and sustain their goals wherever they are on their journey. To learn more visit weightwatchers.com or corporate.ww.com.  

This news release and any attachments include “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, any statements about the Company’s plans, strategies, objectives, initiatives, and prospects. The Company generally uses the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “aim” and similar expressions in this news release and any attachments to identify forward-looking statements. The Company bases these forward-looking statements on its current views with respect to future events and financial performance. Actual results could differ materially from those projected in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: competition from other weight management and health and wellness industry participants or the development of more effective or more favorably perceived weight management methods; the Company's failure to continue to retain and grow its subscriber base; the Company’s ability to be a leader in the rapidly evolving and increasingly competitive clinical weight management and weight loss market; the Company's ability to continue to develop new, innovative services and products and enhance its existing services and products or the failure of its services, products or brands to continue to appeal to the market, or its ability to successfully expand into new channels of distribution or respond to consumer trends or sentiment; regulatory, reputational and other risks associated with the Company’s new compounded GLP-1 offering which will be ending; the Company’s ability to successfully implement strategic initiatives; the Company’s ability to evolve its community offerings to meet the evolving tastes and preferences of its members; the effectiveness and efficiency of the Company's advertising and marketing programs, including the strength of the Company's social media presence; the impact on the Company's reputation of actions taken by its franchisees, licensees, suppliers, affiliated provider entities, PCs’ healthcare professionals, and other partners, including as a result of its acquisition of Weekend Health, Inc., doing business as Sequence (“Sequence”) (the “Acquisition”); the recognition of asset impairment charges; the loss of key personnel, strategic partners or consultants or failure to effectively manage and motivate the Company's workforce; the Company’s chief executive officer transition; the Company’s ability to successfully make acquisitions or enter into collaborations or joint ventures, including its ability to successfully integrate, operate or realize the anticipated benefits of such businesses, including with respect to Sequence; uncertainties related to a downturn in general economic conditions or consumer confidence, including as a result of the existing inflationary environment, changes in tariffs and escalating trade tensions, rising interest rates, the potential impact of political and social unrest and increased volatility in the credit and capital markets; the seasonal nature of the Company's business; the Company's failure to maintain effective internal control over financial reporting; the impact of events that impede accessing resources or discourage or impede people from gathering with others; the early termination by the Company of leases; the inability to renew certain of the Company's licenses, or the inability to do so on terms that are favorable to the Company; the impact of the Company's substantial amount of debt, debt service obligations and debt covenants, and its exposure to variable rate indebtedness; the ability to generate sufficient cash to service the Company's debt and satisfy its other liquidity requirements; uncertainties regarding the satisfactory operation of the Company's technology or systems; the impact of data security breaches and other malicious acts or privacy concerns, including the costs of compliance with evolving privacy laws and regulations; the Company’s ability to successfully integrate and use artificial intelligence in its business; the Company's ability to enforce its intellectual property rights both domestically and internationally, as well as the impact of its involvement in any claims related to intellectual property rights; the impact of existing and future laws and regulations, including federal and state regulations relating to compounded medications; risks related to the Company's exposure to extensive and complex healthcare laws and regulations as a result of the Acquisition; the outcomes of litigation or regulatory actions; risks and uncertainties associated with the Company's international operations, including regulatory, economic, political, social, intellectual property, and foreign currency risks, which risks may be exacerbated as a result of war and terrorism; risks related to the Acquisition, including risks that the Acquisition may not achieve its intended results; risks arising from any delisting of the Company’s common stock from Nasdaq; risks related to the actions of activist shareholders; uncertainty and continuing risks associated with the Company’s ability to achieve its goals; uncertainty around the Company’s ability to repay its debt if accelerated due to its anticipated event of default under its Revolving Credit Facility; risks and uncertainties relating to the Company’s anticipated voluntary petitions for relief under chapter 11 of the Bankruptcy Code in Bankruptcy Court and associated risks of the court process and outcome in connection therewith; and other risks and uncertainties, including those detailed from time to time in the Company's periodic reports filed with the United States Securities and Exchange Commission (the “SEC”) (which are available on the SEC’s EDGAR database at www.sec.gov and via the Company’s website at corporate.ww.com). You should not put undue reliance on any forward-looking statements. You should understand that many important factors, including those discussed herein, could cause the Company’s results to differ materially from those expressed or suggested in any forward-looking statement. Except as required by law, the Company does not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of this news release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company’s filings with the SEC (which are available on the SEC’s EDGAR database at www.sec.gov and via the Company’s website at corporate.ww.com).

For more information, contact:
Investors:
John Mills or Anna Kate Heller
[email protected]

Media:
Mari Santana
[email protected]