Weight Watchers (WW) investor relations material

Executive summary

• Q1 2026 revenue was $168.3M, down 9.8% year-over-year, driven by a decline in behavioral subscriptions, partially offset by 32% growth in clinical subscriptions.

• Net loss for Q1 2026 was $52M, reflecting higher depreciation and amortization from Fresh Start Accounting, and improved from a $72.6M loss in Q1 2025.

• End-of-period subscribers totaled 2.7 million, with clinical subscribers up 46% year-over-year to 197,000 and Core+ behavioral tier up 6% to 537,000.

• The company emerged from bankruptcy in June 2025, resulting in a new capital structure, Fresh Start Accounting, and a leadership transition in March 2026.

• Board welcomed three new independent directors with expertise in transformation, healthcare, and GLP-1 market dynamics.

Financial highlights

• Q1 2026 gross margin was 70.5%, with adjusted gross margin near record highs at 73.6% due to operational efficiencies.

• Adjusted EBITDA for Q1 was a loss of $1.8M, with improvement expected in subsequent quarters; net loss margin was (30.9)%.

• Q1 ARPU increased 13% year-over-year to $20.59, with clinical ARPU over 4x higher than behavioral ARPU.

• Cash and cash equivalents at quarter-end were $121M.

• Interest expense decreased to $11.5M from $27.6M year-over-year due to reduced debt post-bankruptcy.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $620M–$635M and adjusted EBITDA at $105M–$115M.

• Clinical subscription revenue expected to be 25%-30% of 2026 revenue, up from 16% in 2025.

• Modest adjusted gross margin declines expected in 2026 but to remain above 72%.

• Cash generation expected for the remainder of 2026, with $45–$50M in interest costs and $5–$10M in cash taxes.

• Management does not foresee needing additional liquidity in the next 12 months.