WW International — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $152.9 million, a decrease of 11% year-over-year compared to Q3 2025.
• Clinical Subscription Revenue grew 48% year-over-year to $38.0 million, representing 25% of total revenue (up from 15% in Q3 2025).
• Behavioral Subscription Revenue was $113.9 million, down 21.5% year-over-year.
• Net income for Q3 2026 was $15.1 million, a reversal from a net loss of $57.5 million in Q3 2025.
• Net income margin was 9.9% in Q3 2026.
• Adjusted EBITDA was $51.7 million, up 21% year-over-year from $42.8 million in Q3 2025, with an Adjusted EBITDA margin of 33.8%.
• Gross margin was 71.1% and Adjusted Gross Margin was 74.6% in Q3 2026, both the highest for the first three quarters of 2026.
• Cash and cash equivalents were $126.4 million at the end of Q3 2026, up from $101.5 million at the end of Q2 2026.
• Long-term debt, net, was $423.97 million as of September 30, 2026, down from $465.47 million as of December 31, 2025.
• Deferred revenue was $21.94 million as of September 30, 2026, down from $28.57 million as of December 31, 2025.
• Monthly Subscription Revenue Per Average Subscriber was $21.17, up 14% year-over-year.

Guidance and Future Outlook:

• The Company narrowed its full-year fiscal 2026 revenue guidance to $625 million to $630 million, compared to the prior range of $620 million to $635 million.
• The Company narrowed its full-year fiscal 2026 Adjusted EBITDA guidance to $110 million to $115 million, compared to the prior range of $105 million to $115 million.

Business Segments and Product Lines:

• Clinical End of Period Subscribers reached 174 thousand, up 40% year-over-year.
• Core+ (Behavioral) End of Period Subscribers reached 546 thousand, up 16% year-over-year, marking the fourth consecutive quarter of sequential subscriber growth in this tier.
• Total End of Period Subscribers were 2.3 million.
• Management focused on strengthening two higher-value product offerings: Clinical and Core+.
• Clinical Subscription Revenue growth was the largest year-over-year percentage increase in any quarter of 2026 to date.

Market and Competitive Landscape:

• Weight Watchers describes itself as the global leader in science-backed weight management and the most studied commercial weight management program in the world.
• The company positions its integrated support system as built for the GLP-1 era, combining scientific expertise, medication, technology, and human connection.
• The landscape is described as crowded with contradictory advice, isolating apps, and one-size-fits-all solutions.

Risks and Challenges:

• Risks include the company's recent emergence from bankruptcy and the associated uncertainties.
• Competition from other weight management and health and wellness industry participants or the development of more effective weight management methods.
• The ability to retain and grow the subscriber base.
• The ability to remain a leader in the rapidly evolving and increasingly competitive clinical weight management market.
• Dependence on third-party service providers for payment systems and the ability to generate sufficient cash to service debt.
• Risks related to the impact of inflation, rising interest rates, and general economic conditions.
• Potential for asset impairment charges and data security breaches.

Management Commentary and Tone:

• Stephen Bye, President and CEO, stated that weight loss is personal and support needs change along the way, emphasizing a focus on strengthening the member experience and improving products.
• Felicia DellaFortuna, CFO, noted that the company remained focused on strengthening higher-value offerings and calibrating spend, which drove sustained progress and translated into positive Adjusted EBITDA.
• Management highlighted continued expense discipline and lower marketing spend relative to Q3 2025, which included investment for a product launch.

Other Key Points:

• The Company emerged from Chapter 11 financial reorganization on June 24, 2025, applying fresh start accounting.
• In Q3 2026, the Company recorded a gain on extinguishment of debt of $4.6 million related to the voluntary prepayment of a portion of its New Term Loan Facility.
• The Company reported a net loss of $22.8 million for the nine months ended September 30, 2026.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $89.6 million.
• The Company held a conference call on November 5, 2026, to discuss results.