Executive Summary

Q3 revenue of $172.1M declined 10.8% YoY but exceeded consensus; Adjusted EBITDA was $43M with a robust 24.9% margin, while net loss was $58M driven by a $53M tax charge .
Guidance was narrowed to the high-end: FY25 revenue $695–$700M and Adjusted EBITDA $145–$150M, up from $685–$700M and $140–$150M prior, a positive signal into peak season .
Clinical subscription revenue grew 35% YoY to $25.8M; Clinical EOP subscribers were 124K, with better-than-expected retention of prior compounded semaglutide members; Behavioral revenue remained under pressure, falling 16% YoY .
Strategic catalysts: early-2026 oral GLP-1 launch tailwind, app/website replatform by early 2026 peak, Amazon Pharmacy integration, and expanding partnerships with NovoCare/LillyDirect .

What Went Well and What Went Wrong

What Went Well
- Clinical subscription revenue up 35.3% YoY; EOP Clinical subscribers up 59.6% YoY, with retention of compounded semaglutide members exceeding expectations .
- Cost discipline: Adjusted EBITDA margin 24.9% and Adjusted Gross Margin ~75% in Q3; ~70% of cost of revenue was variable, supporting scalability .
- Guidance narrowed higher: FY25 revenue $695–$700M and Adjusted EBITDA $145–$150M; management emphasized strengthened balance sheet and investment capacity post-reorg .
- Quote: “WeightWatchers is entering a new era… uniquely positioned at the intersection of medical innovation and behavioral science…” — CEO Tara Comonte .
What Went Wrong
- Total revenue -10.8% YoY; Behavioral subscription revenue -15.7% YoY on continued recruitment headwinds and brand noise from bankruptcy earlier in the year .
- Net loss of $58M; net loss margin 33.4% due largely to a $53M tax expense in Q3 .
- ARPU declined sequentially on shift to 12-month clinical commitment plans/promotions despite improved YoY; management expects Q4 gross margin to dip on peak season staffing .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$186.6	$189.2 (Combined)	$172.1
Diluted EPS ($USD)	$(0.91)	N/A due to fresh-start; Successor: $0.13	$(5.76)
Gross Margin (%)	71.2%	73.7%	72.1%
Adjusted Gross Margin (%)	71.0%	74.9%	75.1%
Operating Income (Loss) ($USD Millions)	$(20.2)	Predecessor: $41.4	$8.0
Net (Loss) Margin (%)	(38.9%)	Not comparable (reorg effects)	(33.4%)
Adjusted EBITDA ($USD Millions)	$26.9	Predecessor: $60.8; Successor: $4.4	$42.8
Adjusted EBITDA Margin (%)	14.4%	34.4% (Predecessor)	24.9%

Notes: Q2 reflects Predecessor and Successor periods due to fresh start accounting; certain metrics are not directly comparable .

Segment Revenue Breakdown ($USD Millions)

Segment	Q1 2025	Q2 2025	Q3 2025
Behavioral Subscription Revenues	$155.7	$157.3	$145.2
Clinical Subscription Revenues	$29.5	$30.6	$25.8
Other Revenues	$1.4	$1.3	$1.2

Key KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
End of Period Subscribers (Total, ‘000)	3,434	3,167	2,986
End of Period Behavioral (’000)	3,299	3,040	2,862
End of Period Clinical (’000)	135	127	124
Monthly ARPU – Total ($)	N/A	$18.97	$18.52
Monthly ARPU – Behavioral ($)	N/A	$16.54	$16.39
Monthly ARPU – Clinical ($)	N/A	$78.00	$68.52

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	FY 2025	$685–$700	$695–$700	Narrowed higher-end; effectively raised midpoint
Adjusted EBITDA ($USD Millions)	FY 2025	$140–$150	$145–$150	Narrowed higher-end; raised lower bound

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
GLP-1/Clinical transition & retention	Began transitioning away from compounded semaglutide per FDA; proprietary insurance PA engine to facilitate branded access	Better-than-expected retention; ~20% of compounded members converted; anticipate Q3 as trough in clinical EOP subs	Stabilizing/improving retention
Digital/app & website replatform	Plan to modernize tech stack; data and AI as enablers	First version targeted by early next year (peak); ongoing releases through 2026	Accelerating execution
AI/automation & variable cost structure	AI voice support; operational automation; variable cost emphasis	Continued rollout of AI tools in clinical support; ~70% variable cost of revenue; maintained margins	Continuing efficiency
Brand refresh & pricing strategy	Shift from deep discounting; value-based pricing; influencer strategy	Brand refresh planned for peak; expanded influencer and community storytelling	Repositioning underway
Partnerships & access (NovoCare/LillyDirect)	Integrations to expand access and compliance with FDA	Amazon Pharmacy collaboration; real-time availability, coupons, shipping; preparing for oral GLP-1 launches	Broadening ecosystem
Menopause program	Announced as adjacent expansion	Launched; early engagement; US clinical offering with women’s health-trained clinicians	New growth vector

Management Commentary

CEO Tara Comonte emphasized WW’s integrated care model combining clinical solutions with decades of behavioral science, asserting leadership “at the intersection of medical innovation and behavioral science” and positioning the company for the “new era” of weight health .
CFO Felicia DellaFortuna highlighted strong profitability and cost discipline (Adj. EBITDA margin 24.9%), sequential EBITDA to decline in Q4 with elevated marketing for peak, and narrowed FY25 guidance ranges at the high-end .
Strategic direction: app and website replatform by early peak season; partnerships with NovoCare/LillyDirect/Amazon Pharmacy to reduce friction and improve access; building international expansion and B2B channels .

Q&A Highlights

App timing: first release by early next year for peak season; multiple releases through 2026; design to unify clinical/behavioral and surface features like GLP-1 Companion and RD offering .
Partnerships: Amazon Pharmacy integration delivers real-time availability, automatic coupons, and Prime shipping; closer collaboration with Novo on Wegovy (injectable and upcoming oral) and LillyDirect .
Clinical retention: ~20% of prior compounded semaglutide members converted to branded/oral medications; Q3 clinical EOP subs likely trough .
Menopause program: two pathways (with/without clinical), initial launch with strong engagement and brand moment, aligned with women’s health and weight health overlap .
Peak season setup: brand refresh, product initiatives, and anticipated oral GLP-1 launches as incremental funnel tailwinds .

Estimates Context

Metric	Q1 2025 Consensus	Q1 2025 Actual	Q2 2025 Consensus	Q2 2025 Actual	Q3 2025 Consensus	Q3 2025 Actual
Revenue ($USD Millions)	$180.3*	$186.6	$178.0*	$189.2 (Combined)	$161.4*	$172.1
Primary EPS ($USD)	N/A	$(0.91)	$(0.025)*	$0.686*	$0.835*	$(5.76)

Values retrieved from S&P Global.*
Observations: WW beat revenue consensus in Q1–Q3; Q3 EPS was a significant miss, driven by a $53M tax expense on a GAAP basis . Q2 EPS comparability is distorted by fresh-start/reorganization impacts .

Key Takeaways for Investors

WW delivered a revenue beat and high-end guidance narrowing despite Behavioral pressure, supported by strong Clinical growth and cost discipline; watch for peak-season spending trade-off on Q4 margins .
The Q3 EPS miss was largely tax-driven; core profitability remains resilient (Adj. EBITDA margin 24.9%)—focus on underlying margin sustainability vs GAAP noise .
Clinical retention post-compounded transition surprised positively; management expects clinical subscriber trough in Q3, with oral GLP-1 launches as a 2026 catalyst .
Near-term catalysts: brand refresh; app/website replatform by early 2026 peak; Amazon Pharmacy integration; expanding payer/employer channels; UK CheqUp partnership .
Behavioral recruitment remains a headwind; marketing intensity to rise into peak—monitor conversion, ARPU mix, and subscriber trajectory sequentially .
Balance sheet reset reduces debt >70% (~$1.1B), cash of ~$170M at Q3 end—provides capacity to invest while maintaining margin discipline .
Estimate implications: revenue models likely revise up modestly; EPS estimates should adjust for tax dynamics and peak-season spending cadence; FY25 guide supports high-end outcomes .

WW INTERNATIONAL, INC. (WW)·Q3 2025 Earnings Summary