Core Viewpoint - WW International, Inc. has launched "WeightWatchers for Menopause," a program aimed at supporting women through all stages of menopause, marking a significant advancement in women's health [1][4]. Company Overview - WeightWatchers is recognized as a global leader in science-backed weight management, with over 60 years of experience in providing integrated support systems that combine scientific expertise and community connection [6]. - The company has a long-standing reputation for delivering meaningful results, with studies showing that women of menopausal age who followed WeightWatchers' nutritional guidance lost nearly four times more weight than those managing on their own [4][7]. Program Details - The new program combines trusted medical care (available in the U.S.), science-backed nutrition, lifestyle support, and a compassionate community to offer personalized care for women experiencing menopause [3]. - Developed by leading physicians and menopause specialists, the program includes one-on-one guidance, access to evidence-based treatments, a tailored version of the Points® Programme, and fitness designed for strength and stability [3][4]. - U.S. members can access comprehensive consultations and individualized care plans, including prescription options like hormone replacement therapy (HRT) and GLP-1 medications, monitored by licensed clinicians [4]. Impact and Results - Women enrolled in WeightWatchers Clinic in the U.S. lost an average of 18.6% of their body weight within one year [4]. - Research indicates that postmenopausal women receiving hormone therapy combined with GLP-1 semaglutide achieved approximately 30% greater weight loss compared to those using GLP-1 alone [4][8]. Community and Advocacy - Queen Latifah has been appointed as the spokesperson for the program, emphasizing the importance of support and understanding during menopause [2]. - The program aims to empower women to feel healthier, stronger, and more confident as they navigate menopause and beyond, addressing a historically underserved area in women's health [4].

Core Viewpoint - WW International, Inc. has launched "WeightWatchers for Menopause," a program aimed at supporting women through all stages of menopause, marking a significant advancement in women's health [2][3][4]. Group 1: Program Features - The program combines medical care, science-backed nutrition, lifestyle support, and a community of women to provide personalized care for menopause [3][5]. - It includes one-on-one guidance from menopause-trained clinicians, access to evidence-based treatments, a tailored Points® Program, and fitness designed for strength and stability [3][4]. - Workshops are led by coaches who understand menopause, ensuring comprehensive support [3][5]. Group 2: Clinical Evidence and Results - Women of menopausal age following WeightWatchers' nutritional guidance lost nearly four times more weight than those managing on their own [4]. - Participants in WeightWatchers Clinic lost an average of 18.6% of their body weight (40.1 lbs) in one year [4]. - Research from the Mayo Clinic indicates that postmenopausal women receiving hormone therapy combined with GLP-1 semaglutide achieved approximately 30% greater weight loss than those using GLP-1 alone [4][9]. Group 3: Leadership and Advocacy - Queen Latifah has been appointed as the spokesperson for the program, emphasizing the importance of support for women during menopause [2][4]. - Tara Comonte, CEO of WeightWatchers, highlighted the program as a comprehensive care solution that integrates specialized medical expertise and community support [4][5]. Group 4: Company Background - WeightWatchers has over 60 years of experience in weight management and is recognized as the most studied commercial weight management program globally [7]. - The company offers a holistic approach that includes clinical interventions and a network of coaches to support members in achieving their health goals [7].

Core Insights - WW International, Inc. has appointed Alejandro Bethlen as Executive Vice President, International, to drive international growth and innovation [1][2] - Bethlen brings over two decades of experience in scaling consumer and e-commerce businesses, which will enhance WeightWatchers' leadership in weight health [1][3] Company Overview - WeightWatchers is recognized as the global leader in science-backed weight management, serving millions through a holistic solution that includes a proprietary nutrition program, digital tools, and community support [2][5] - The company has over 60 years of experience and is the most studied commercial weight management program globally, offering personalized approaches and clinical interventions [5] Leadership and Strategy - The appointment of Bethlen is part of a broader strategy to strengthen the executive team, which includes recent hires such as Dr. Kim Boyd as Chief Medical Officer and Uta Knablein as Chief Product Officer [4] - The expanded leadership team aims to advance the company's transformation and enhance member impact worldwide [4] Market Position - WeightWatchers operates with a unique worldwide scale, delivering science-backed programs both digitally and in-person, supported by dedicated coaches and local teams [2][5] - The company is focused on extending its reach with culturally relevant solutions that resonate with members globally [2]

Core Insights - WeightWatchers has appointed Alejandro Bethlen as Executive Vice President, International, to lead its international growth and innovation efforts [1][2] - Bethlen brings over two decades of experience in scaling consumer and e-commerce businesses globally, which will be crucial for WeightWatchers' expansion [1][3] - The company aims to enhance its international presence by leveraging science-backed solutions that resonate with diverse cultural contexts [2][4] Company Overview - WeightWatchers is recognized as the global leader in science-backed weight management, offering a comprehensive support system that integrates scientific expertise with community support [5] - The company has over 60 years of experience and is the most studied commercial weight management program globally, providing a holistic and personalized approach to weight health [5] - WeightWatchers serves millions of members worldwide through both digital and in-person programs, supported by dedicated coaches and local teams [2][5] Leadership and Strategy - The appointment of Bethlen is part of a broader strategy to strengthen the executive team, which includes recent hires such as Dr. Kim Boyd as Chief Medical Officer and Uta Knablein as Chief Product Officer [4] - The expanded leadership team is expected to drive the company's transformation and enhance its impact on members globally [4] - WeightWatchers is focused on accelerating global initiatives and innovation to improve access to its programs and enhance member experiences [2][4]

Core Insights - WW International (formerly WeightWatchers) reported its first quarter earnings post-bankruptcy, surpassing both earnings and revenue estimates [1] - The company achieved $65 million in adjusted EBITDA, reflecting nearly 30% growth compared to the previous year's results [1] Financial Performance - The adjusted EBITDA of $65 million indicates a strong recovery and operational efficiency post-bankruptcy [1] - The growth rate of almost 30% year-over-year demonstrates the company's ability to rebound and improve its financial standing [1]

Company Strategy - WeightWatchers views its support groups as a competitive advantage [1] - The company highlights the value of its support groups in an environment of GLP-1 drug secrecy and limited doctor-patient interaction [1]

Core Insights - WW International, Inc. has launched the inaugural WeightWatchers Awards to recognize 38 standout products that support weight health journeys [1][2] - The awards aim to provide clarity in a crowded marketplace filled with conflicting product claims, leveraging a 62-year legacy grounded in science [2][6] - The awards highlight products that are not only popular but also effective in supporting long-term, sustainable health habits [3][4] Product Evaluation Criteria - A diverse panel of experts, including registered dietitians and fitness professionals, evaluated products based on nutritional quality, taste, accessibility, affordability, and support for weight health [4][5] - Only third-party tested supplements were considered, while food prep and cooking products were prioritized for affordability, performance, and ease of use [5] - Movement-related products were assessed for versatility, comfort, cost, and their ability to support various forms of exercise [5] Company Commitment - The WeightWatchers Awards reflect the company's commitment to providing clarity, authenticity, and credibility in health and wellness [6] - The initiative empowers individuals to prioritize their health in realistic and sustainable ways tailored to everyday life [6][8] - WeightWatchers has over 60 years of experience in weight management, offering a holistic approach that includes clinical interventions and community support [8]

Financial Data and Key Metrics Changes - The company reduced its debt from $1.6 billion to $465 million, resulting in a significant decrease in interest expenses and freeing up approximately $50 million annually [5][27] - Monthly subscription revenues per average subscriber (ARPU) increased by 12% year over year in Q2, marking the third consecutive quarter of ARPU expansion [29] - Total revenues for Q2 were $189 million, a decline of 6% year over year, primarily due to challenges in the behavioral business [31] - Adjusted EBITDA margin improved to 34% in the predecessor period, up more than 900 basis points year over year, reflecting disciplined cost management [32] Business Line Data and Key Metrics Changes - Total ended period subscribers declined by 17% year over year, ending at 3.2 million, with clinical subscribers growing by 56% year over year but experiencing a sequential decline due to the transition from compounded semaglutide to FDA-approved medications [29][30] - Behavioral revenue declined by 13% year over year, while clinical revenue grew by 55%, largely due to compounded semaglutide subscriptions [31] Market Data and Key Metrics Changes - The company is facing near-term headwinds from the transition of clinical members to alternative medications, which are generally at higher price points [9] - The competitive landscape remains challenging, with other telehealth players continuing to offer compounded GLP-1s, impacting consumer sentiment and acquisition [9][45] Company Strategy and Development Direction - The company aims to return to profitable growth by focusing on four core pillars: building a unified member experience, growing emerging revenue streams, revitalizing the brand, and driving operational excellence [10][11] - The strategic reorganization is seen as a pivotal moment, allowing for renewed investment and innovation for long-term growth [5][8] - The company plans to expand into women's health, particularly targeting the menopause segment, which aligns with its weight health initiatives [61][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by the bankruptcy process and the transition to FDA-approved medications, but remains confident in the long-term growth strategy [9][36] - The company expects total combined revenues for fiscal 2025 to be between $685 million and $700 million, with adjusted EBITDA of $140 million to $150 million [37] Other Important Information - The company has completed $100 million in run-rate cost savings and continues to optimize its cost base [25] - The integration of clinical and behavioral operations is underway to enhance resource efficiency and support [25] Q&A Session Summary Question: Impact of the shutoff of compounding on clinic subscribers - Management emphasized the complexity of the clinical landscape and the ongoing transition of members from compounded semaglutide to alternative medications, which is expected to continue through August [45][48] Question: Quantification of compounding members rolling off - Management indicated that the majority of subscriber growth was linked to compounded semaglutide, and a decline in subscribers is anticipated as the transition progresses [52] Question: B2B opportunity and scaling enterprise sales teams - Management expressed confidence in the B2B channel as a significant growth area, particularly with increasing pressure on employers to offer obesity solutions [57] Question: Expansion into women's health - Management confirmed plans to launch a women's health program that incorporates behavioral support and clinical care, targeting the perimenopausal and menopausal stages [61][62]

PART I—FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Financial statements reflect the company's June 24, 2025, Chapter 11 emergence and fresh start accounting, making Predecessor and Successor periods non-comparable - The company emerged from Chapter 11 bankruptcy on **June 24, 2025**, applying fresh start accounting, which renders Predecessor and Successor financial periods non-comparable due to asset and liability revaluation[29](index=29&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | Successor (June 30, 2025) | Predecessor (Dec 28, 2024) | | :--- | :--- | :--- | | **Total Assets** | **$1,033,118** | **$550,276** | | Cash and cash equivalents | $152,379 | $53,024 | | Goodwill | $199,053 | $239,583 | | Other intangible assets, net | $527,566 | $115,762 | | **Total Liabilities** | **$652,149** | **$1,664,648** | | Long-term debt, net | $465,518 | $1,430,643 | | **Total Equity (Deficit)** | **$380,969** | **($1,114,372)** | Consolidated Statement of Operations Highlights (in thousands) | Account | Successor (Jun 25-30, 2025) | Predecessor (Mar 30 - Jun 24, 2025) | Predecessor (Q2 2024) | | :--- | :--- | :--- | :--- | | Revenues, net | $12,167 | $176,997 | $202,073 | | Operating income | $2,586 | $41,404 | $35,933 | | Reorganization items, net | — | ($1,143,918) | — | | Net income | $1,254 | $1,190,688 | $23,269 | [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail the Chapter 11 reorganization, including emergence on June 24, 2025, fresh start accounting, debt reduction, and impairment charges, with sufficient post-emergence liquidity - The company filed for Chapter 11 bankruptcy on **May 6, 2025**, emerging on **June 24, 2025**, with the plan discharging prior debt, issuing a new **$465 million** term loan, and reallocating equity (91% to first lien holders, 9% to former equity holders)[29](index=29&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - Fresh start accounting adoption established a reorganization value of **$1.02 billion** and an enterprise value of **$700 million**, leading to significant adjustments including **$529 million** in new intangible assets, primarily a **$320 million** trade name[45](index=45&type=chunk)[47](index=47&type=chunk)[98](index=98&type=chunk) - The company recorded a **$27.5 million** impairment charge on U.S. indefinite-lived franchise rights in Q1 FY2025 (Predecessor), following a **$258.0 million** charge in Q1 FY2024[109](index=109&type=chunk)[108](index=108&type=chunk)[13](index=13&type=chunk) - Post-emergence, the company changed its fiscal year end to **December 31** from the Saturday closest to December 31[36](index=36&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's Chapter 11 emergence, significant debt reduction, declining Behavioral business offset by Clinical growth, and sufficient post-restructuring liquidity - The Chapter 11 reorganization discharged approximately **$1.62 billion** in prepetition debt, replacing it with a new **$465 million** Senior Secured Term Loan Facility maturing in **2030**[168](index=168&type=chunk)[247](index=247&type=chunk) Combined Key Performance Metrics (Q2 2025 vs. Q2 2024) | Metric | Combined Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Subscription Revenues** | | | | | Behavioral | $157.3 M | $180.2 M | (12.7%) | | Clinical | $30.6 M | $19.7 M | 55.1% | | **Total** | **$187.9 M** | **$200.0 M** | **(6.1%)** | | **End of Period Subscribers** | | | | | Behavioral | 3,040.5 k | 3,755.5 k | (19.0%) | | Clinical | 126.7 k | 81.0 k | 56.5% | | **Total** | **3,167.2 k** | **3,836.5 k** | **(17.4%)** | - The decline in Behavioral Subscription Revenues resulted from recruitment challenges and a lower subscriber base, while Clinical Subscription Revenues increased due to growth in compounded semaglutide subscriptions[215](index=215&type=chunk)[196](index=196&type=chunk) - Post-emergence, the company held **$152.4 million** in unrestricted cash, believing its liquidity is sufficient for at least the next **12 months** due to reduced debt and interest payments[248](index=248&type=chunk)[249](index=249&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its new variable-rate Term Loan Facility, with a hypothetical 1.25% change impacting annual interest expense by **$5.8 million** - The company's market risk exposure primarily relates to interest rate changes on its new variable-rate Term Loan Facility[276](index=276&type=chunk) - A hypothetical **125 basis point (1.25%)** change in interest rates would alter annual interest expense by approximately **$5.8 million**, reflecting reduced risk exposure post-debt restructuring[277](index=277&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - As of **June 30, 2025**, the company's principal executive and financial officers concluded that disclosure controls and procedures were effective[278](index=278&type=chunk) - No material changes occurred in internal control over financial reporting during the most recent fiscal quarter[279](index=279&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company's primary legal proceedings involve its Chapter 11 filing and emergence, with other ordinary course actions not expected to materially impact financials - The main legal proceedings are the Chapter 11 Cases, filed on **May 6, 2025**, and emerged from on **June 24, 2025**[130](index=130&type=chunk)[133](index=133&type=chunk) - Management anticipates no material adverse effect on financials from other ordinary course legal matters[134](index=134&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) Key risks post-bankruptcy include impacts on business relationships, non-comparable financials due to fresh start accounting, ability to service **$465.5 million** debt, and risks from discontinued GLP-1 offerings - Emergence from Chapter 11 poses risks to vendor, member, and employee relationships, impacting the company's ability to execute its business plan[282](index=282&type=chunk) - Post-emergence financial results are not comparable to historical data due to fresh start accounting, and bankruptcy-filed projections should not be relied upon[284](index=284&type=chunk) - The company's ability to service its substantial new debt of **$465.5 million** depends on future performance, potentially affected by competition from weight management medications and other market factors[286](index=286&type=chunk) - The discontinued compounded GLP-1 offering (ended **May 22, 2025**) exposes the company to litigation, regulatory, and reputational risks, with customer transition potentially creating near-term business headwinds[294](index=294&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales during the quarter, except those related to bankruptcy emergence, and no equity repurchases were made - No unregistered sales of equity securities occurred during the quarter, except as previously disclosed regarding the bankruptcy emergence[302](index=302&type=chunk) - The company did not repurchase any of its equity securities during the quarter[303](index=303&type=chunk)

[Executive Summary & Outlook](index=1&type=section&id=WeightWatchers%20Announces%20Second%20Quarter%202025%20Results) The company completed a strategic reorganization, reducing debt by $1.15 billion, and reported Q2 2025 results with a 6% revenue decline offset by strong clinical growth, while issuing full-year 2025 guidance [Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) WeightWatchers successfully completed its strategic reorganization, reducing debt by $1.15 billion, with second quarter 2025 combined revenues declining 6% year-over-year to $189 million due to Behavioral business headwinds, partially offset by 55% growth in the Clinical segment, ending the period with 3.2 million subscribers, a 17% decrease from the prior year, including 127,000 Clinical subscribers - Successfully completed a strategic reorganization, reducing debt by **$1.15 billion**, with the emergence from this process on June 24, 2025, leading to the quarter being split into 'Predecessor' and 'Successor' periods for accounting purposes[2](index=2&type=chunk) Q2 2025 Key Performance Indicators (Combined) | Metric | Value | Change vs. Prior Year | | :--- | :--- | :--- | | **Total Revenues** | $189 million | -6% | | **Clinical Revenues** | $31 million | +55% | | **End of Period Subscribers** | 3.2 million | -17% | | **End of Period Clinical Subscribers** | 127 thousand | +56.5% | | **Predecessor Adjusted EBITDA** | $61 million | N/A | | **Successor Adjusted EBITDA** | $4 million | N/A | - The Clinical business began transitioning subscribers from compounded semaglutide to FDA-approved medications starting May 22nd, in line with FDA guidance[9](index=9&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed confidence in the company's future, highlighting a stronger financial footing post-reorganization, with CEO Tara Comonte emphasizing accelerating innovation through an integrated model and CFO Felicia DellaFortuna prioritizing business stabilization, growth investment, and long-term profitability - CEO Tara Comonte stated the company is well-positioned to meet the need for effective weight health support, marking a new chapter with a stronger financial foundation and clear opportunities[3](index=3&type=chunk) - CFO Felicia DellaFortuna highlighted that the swift reorganization provides greater financial flexibility, with the immediate focus on business stabilization, investment in growth, and maintaining financial discipline for long-term profitability[3](index=3&type=chunk) [Full Year Fiscal 2025 Guidance](index=2&type=section&id=Full%20Year%20Fiscal%202025%20Guidance) The company has issued its financial guidance for the full fiscal year of 2025, projecting total combined revenues to be in the range of $685 million to $700 million and Adjusted EBITDA between $140 million and $150 million Full Year 2025 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | **Total Combined Revenues** | $685 million - $700 million | | **Adjusted EBITDA** | $140 million - $150 million | [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents the company's consolidated financial statements, including the balance sheets reflecting post-reorganization capital structure, statements of operations detailing revenue and net income, and cash flow activities for the period [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, following reorganization, the company's balance sheet reflects a significant capital structure change, with total assets increasing to $1.03 billion from $550 million, total liabilities decreasing substantially to $652 million from $1.66 billion primarily due to long-term debt reduction, and total equity shifting from a $1.11 billion deficit to a positive $381 million Balance Sheet Summary (in thousands) | Account | June 30, 2025 (Successor) | Dec 28, 2024 (Predecessor) | | :--- | :--- | :--- | | **Total Assets** | $1,033,118 | $550,276 | | Cash and cash equivalents | $152,379 | $53,024 | | **Total Liabilities** | $652,149 | $1,664,648 | | Long-term debt, net | $465,518 | $1,430,643 | | **Total Equity (Deficit)** | $380,969 | $(1,114,372) | [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) For the second quarter, combined revenues were $189.2 million, down from $202.1 million in the prior year, with the Predecessor period reporting a net income of $1.19 billion influenced by a $1.14 billion net reorganization gain, while the Successor period showed a net income of $1.3 million, and six-month combined revenues were $375.7 million compared to $408.6 million in the prior year Q2 Statement of Operations Highlights (in thousands) | Metric | Combined Q2 2025 | Q2 2024 (Predecessor) | | :--- | :--- | :--- | | **Revenues, net** | $189,164 | $202,073 | | Gross profit | $139,417 | $137,294 | | Operating income | $43,990 | $35,933 | | Reorganization items, net | $(1,143,918) | $0 | | **Net income** | $1,191,942 | $23,269 | Six Months Statement of Operations Highlights (in thousands) | Metric | Combined YTD 2025 | YTD 2024 (Predecessor) | | :--- | :--- | :--- | | **Revenues, net** | $375,735 | $408,621 | | Operating income (loss) | $23,789 | $(233,399) | | Reorganization items, net | $(1,143,918) | $0 | | **Net income (loss)** | $1,119,357 | $(324,633) | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, combined cash used for operating activities was $22.9 million, an improvement from the prior year, with $6.5 million used for investing activities and $153.9 million provided by financing activities, primarily from revolving credit facility borrowings, ending the period with $185.5 million in cash, cash equivalents, and restricted cash Six Months Cash Flow Summary (in thousands) | Cash Flow Activity | Combined YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | **Cash from Operating Activities** | $(22,915) | $(37,976) | | **Cash from Investing Activities** | $(6,529) | $(10,111) | | **Cash from Financing Activities** | $153,898 | $(17,132) | | **Net Change in Cash** | $129,000 | $(66,657) | | **Cash at End of Period** | $185,484 | $42,709 | [Key Business Metrics & Non-GAAP Reconciliations](index=12&type=section&id=Key%20Business%20Metrics%20%26%20Non-GAAP%20Reconciliations) This section analyzes key business metrics, including detailed revenue and subscriber performance, ARPU trends, and reconciliations of non-GAAP financial measures such as Adjusted EBITDA [Revenue Analysis](index=12&type=section&id=Revenue%20Analysis) In Q2 2025, combined total revenues fell 6.4% year-over-year to $189.2 million, driven by a 12.7% decline in Behavioral Subscription Revenues partially mitigated by a 55.1% increase in Clinical Subscription Revenues, with similar trends for the first six months where total revenues were down 8.0% year-over-year Q2 2025 Combined Revenue Breakdown (in thousands) | Revenue Stream | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Behavioral Subscription | $157,258 | $180,233 | -12.7% | | Clinical Subscription | $30,593 | $19,723 | +55.1% | | **Total Subscription Revenues** | **$187,851** | **$199,956** | **-6.1%** | | Other Revenues | $1,312 | $2,117 | -38.0% | | **Total Revenues** | **$189,163** | **$202,073** | **-6.4%** | Six Months 2025 Combined Revenue Breakdown (in thousands) | Revenue Stream | YTD 2025 | YTD 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Behavioral Subscription | $312,981 | $365,537 | -14.4% | | Clinical Subscription | $60,051 | $38,475 | +56.1% | | **Total Subscription Revenues** | **$373,032** | **$404,012** | **-7.7%** | | Other Revenues | $2,703 | $4,609 | -41.4% | | **Total Revenues** | **$375,735** | **$408,621** | **-8.0%** | [Subscriber & ARPU Analysis](index=14&type=section&id=Subscriber%20%26%20ARPU%20Analysis) The company ended Q2 2025 with 3.17 million subscribers, a 17.4% decrease year-over-year reflecting Behavioral segment recruitment challenges, as Behavioral subscribers declined 19.0% to 3.04 million while Clinical subscribers grew 56.5% to 127,000, and overall Monthly Subscription Revenue Per Average Subscriber (ARPU) increased by 11.6% to $18.97 Q2 2025 End of Period Subscribers (in thousands) | Subscriber Type | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Behavioral | 3,040 | 3,756 | -19.0% | | Clinical | 127 | 81 | +56.5% | | **Total Subscribers** | **3,167** | **3,837** | **-17.4%** | Q2 2025 Monthly Subscription Revenue Per Average Subscriber (ARPU) | ARPU Type | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Behavioral | $16.54 | $15.66 | +5.6% | | Clinical | $78.00 | $78.37 | -0.5% | | **Overall** | **$18.97** | **$17.00** | **+11.6%** | [Adjusted EBITDA Reconciliation](index=18&type=section&id=Adjusted%20EBITDA%20Reconciliation) The company provides a reconciliation from Net Income (Loss) to Adjusted EBITDA, where the Predecessor period's Net Income of $1.19 billion was adjusted for a $1.14 billion net reorganization gain resulting in $60.8 million Adjusted EBITDA, and the Successor period's Net Income of $1.3 million was adjusted to $4.4 million Adjusted EBITDA, leading to a combined quarterly Adjusted EBITDA of approximately $65.3 million - The largest adjustment to reconcile Net Income to Adjusted EBITDA in the Predecessor period was the exclusion of a **$1.14 billion** net gain related to the Chapter 11 financial reorganization[61](index=61&type=chunk)[63](index=63&type=chunk) Q2 2025 Adjusted EBITDA Reconciliation Summary (in thousands) | Period | Net Income | Key Adjustments (Reorganization, etc.) | Adjusted EBITDA | | :--- | :--- | :--- | :--- | | **Successor (Jun 25-30)** | $1,254 | $3,195 | $4,449 | | **Predecessor (Mar 30-Jun 24)** | $1,190,688 | $(1,129,870) | $60,818 | [Notes and Disclosures](index=2&type=section&id=Notes%20and%20Disclosures) This section provides important disclosures regarding the accounting treatment of Predecessor and Successor periods post-reorganization, along with explanations of non-GAAP financial measures and forward-looking statement caveats [Explanation of Predecessor and Successor Periods](index=2&type=section&id=Explanation%20of%20Predecessor%20and%20Successor%20Periods) Due to the company's emergence from financial reorganization on June 24, 2025, and the application of fresh start accounting, the second quarter is divided into 'Predecessor' and 'Successor' periods for reporting, making financial statements after June 24 not directly comparable to prior periods, though management combines certain metrics for meaningful comparisons - The company's emergence from financial reorganization on June 24, 2025, necessitates splitting Q2 into a 'Predecessor' period and a 'Successor' period[6](index=6&type=chunk) - Fresh start accounting has been applied, making consolidated financial statements after June 24, 2025, not comparable with prior periods[6](index=6&type=chunk) - Management combines results from the Predecessor and Successor periods for certain metrics (e.g., revenue, subscribers) to offer a more meaningful comparison of operating trends[7](index=7&type=chunk)[10](index=10&type=chunk) [Non-GAAP Financial Measures and Forward-Looking Statements](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Forward-Looking%20Statements) The report includes non-GAAP financial measures like Adjusted EBITDA and constant currency results to supplement GAAP, which management believes provide useful period-over-period comparisons by excluding specific items, and also contains forward-looking statements subject to numerous risks and uncertainties including competition, subscriber retention, and regulatory changes - The company uses non-GAAP measures like EBITDA and Adjusted EBITDA, which exclude items such as reorganization costs, transaction costs, and restructuring charges, to better reflect ongoing operations[17](index=17&type=chunk)[19](index=19&type=chunk) - Results are also presented on a constant currency basis to remove the impact of foreign exchange rate fluctuations for better period-to-period comparison[18](index=18&type=chunk) - The report contains forward-looking statements that are subject to significant risks, including competition, ability to retain subscribers, regulatory risks associated with clinical offerings, and the impacts of the recent bankruptcy emergence[24](index=24&type=chunk)[25](index=25&type=chunk)