Company Performance - WW International reported a quarterly loss of $0.47 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.26, and compared to a loss of $0.06 per share a year ago, indicating an earnings surprise of -80.77% [1] - The company posted revenues of $186.57 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.63%, and down from $206.55 million in the same quarter last year [2] - WW International shares have declined approximately 44.1% since the beginning of the year, contrasting with the S&P 500's decline of -3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $190.75 million, and for the current fiscal year, it is -$0.21 on revenues of $767.49 million [7] - The estimate revisions trend for WW International is currently favorable, leading to a Zacks Rank 1 (Strong Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which WW International belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Summary of Weight Watchers Investor Conference Call (May 06, 2025) Company Overview - **Company**: Weight Watchers International (WW) - **Event**: Investor Conference Call discussing Q1 2025 results and financial reorganization Key Points Financial Reorganization - Weight Watchers has entered a voluntary prepackaged Chapter 11 process to restructure its capital [2][20] - An agreement has been reached with a super majority of lenders to reduce debt by **$1,150,000,000**, a reduction of over **70%** from current levels [6][20] - Long-term debt will decrease from **$1,600,000,000** to **$465,000,000**, with maturities extended to **2030** [6][20] - Anticipated annual interest payments will be halved to approximately **$50,000,000**, improving free cash flow [6][20] - Cash balance at the end of Q1 was **$236,000,000**, including **$171,000,000** from a revolving credit facility drawdown [7][26] Operational Continuity - Weight Watchers remains fully operational during the reorganization, with no impact on services or member plans [9] - All trade creditors and general unsecured creditors will be paid in full [9] Subscriber and Revenue Trends - Total subscribers declined **14%** year-over-year to **3,400,000**, but clinical subscriber growth accelerated by **47%** to **135,000** [21][22] - Q1 revenue was **$187,000,000**, a **10%** decline year-over-year, with clinical revenue growing **57%** to **$29,000,000** [23] - Adjusted gross margin reached a record high of **71%**, up from **67.9%** in the prior year [23] Strategic Focus - The company aims to stabilize and innovate to lay the groundwork for future growth [27] - Weight Watchers emphasizes a holistic approach to weight management, integrating clinical care with behavioral support [12][15] - The company plans to transition clinic members from compounded semaglutide to other medications by May 22, 2025, due to FDA regulations [28] Market Position and Community Engagement - Weight Watchers is recognized as a leader in the weight management industry, with a strong legacy of scientific backing and community support [11][17] - The company highlights the importance of community in achieving weight loss goals, noting that workshop members lose twice as much weight as those who do it alone [17] Future Outlook - Weight Watchers expects continued revenue headwinds in 2025, particularly in the behavioral business, but remains confident in long-term growth potential [29] - The company is focused on operational improvements and disciplined capital allocation to balance profitability with growth [29] Conclusion - Weight Watchers is committed to its transformation and innovation strategy, aiming to emerge from the reorganization as a stronger, publicly traded company [9][20][32]

Core Viewpoint - WW International, Inc. is undergoing a financial reorganization to eliminate $1.15 billion in debt, enhance its digital and member experience, and expand its telehealth business, which saw a 57% year-over-year revenue growth in Q1 2025 [1][3][4] Financial Reorganization - The company has entered into a comprehensive agreement with lenders and noteholders, representing approximately 72% of the outstanding principal amount of its term loan and credit facilities, to support the reorganization [3] - The reorganization is expected to be confirmed in about 40 to 45 days, allowing the company to emerge as a publicly traded entity [1][3] - The transaction will reduce annual interest expenses by approximately $50 million and extend the maturity of its debt [6] Operational Continuity - WeightWatchers remains fully operational during the reorganization process, ensuring no impact on its more than three million members worldwide [1][2] - The company will continue to honor all commitments to employees, vendors, and creditors, paying all trade creditors in full [2][5] Strategic Growth Initiatives - The reorganization will provide the company with increased investment flexibility to accelerate innovation and reinvest in member services [4] - The focus will be on enhancing the digital experience and expanding the telehealth business, which has shown significant revenue growth [1][4] Stakeholder Communication - WeightWatchers has launched a dedicated webpage for members to access information about the restructuring process [4] - Stakeholders can contact the company's claims agent for additional information regarding the court-supervised process [7]

Core Viewpoint - WW International, Inc. is expected to announce a significant reduction in debt obligations through an agreement with lenders and noteholders, leading to a voluntary prepackaged filing under Chapter 11 of the U.S. Bankruptcy Code [1] Company Overview - WW International, Inc. is recognized as the global leader in science-backed weight management, offering a holistic model of care through its Points® Program, clinical interventions, and community support [2] - The company has been empowering millions of members since 1963 to build healthy habits and sustain their weight management goals [2]

Exhibit 99.1 WW International, Inc. Announces First Quarter 2025 Results NEW YORK (May 6, 2025) – 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, ...

Core Insights - WW International, Inc. reported a net loss of $72.6 million for Q1 2025, a significant improvement from a net loss of $347.9 million in the same period last year, reflecting a 79.1% reduction in losses [9][10][16] - The company experienced a 9.7% decline in total revenues, amounting to $186.6 million, primarily due to challenges in the Behavioral business, despite a 57% year-over-year growth in Clinical revenue [3][10][9] - Adjusted EBITDAS increased to $26.9 million, up 274% year-over-year, indicating improved operational efficiency and cost management [9][10][16] Financial Performance - Subscription revenues decreased by 9.3% to $185.2 million, with Clinical subscription revenues rising by 57.1% to $29.5 million [3][10][9] - Gross profit was $132.9 million, down 3.6% from the previous year, while the gross margin improved to 71.2%, up 450 basis points [9][10][16] - The company reported an adjusted EPS of -$0.47, compared to -$1.29 in the prior year, marking a 63.7% improvement [9][10][16] Subscriber Metrics - Total end-of-period subscribers decreased by 14.2% to 3.4 million, with a notable 55.2% increase in Clinical subscribers to 135,000 [9][10][10] - Digital subscribers fell by 14.7% to 2.8 million, while Workshops + Digital subscribers decreased by 21.1% to 0.5 million [9][10][10] - Subscription revenues per paid week increased by 4.8% to $4.13, driven by growth in the Clinical business [9][10][10] Strategic Initiatives - The company is focusing on delivering a unified member experience, revitalizing its brand, and expanding adjacent revenue streams [2][10] - WW International is engaged in discussions with lenders to restructure its capital and reduce debt, with a potential prepackaged filing under Chapter 11 anticipated imminently [9][10][16] - The management emphasizes the importance of operational excellence and efficiency to stabilize the business and return to growth [2][10]

Core Insights - WeightWatchers has announced a pharmacy integration with Gifthealth to enhance access to Zepbound® for its clinic members [1][2] - The integration aims to streamline the fulfillment process and improve medication visibility for eligible members [2][3] Company Overview - WeightWatchers is a leader in science-backed weight management, providing a holistic model of care that includes clinical interventions and community support [4] - The company has been transforming lives for over 60 years, empowering millions of members to build healthy habits [4] Integration Details - The integration with Gifthealth allows for real-time prescription tracking and streamlined access to Zepbound® vials for self-pay patients without insurance [2][3] - Zepbound® usage among WeightWatchers Clinic members has increased significantly, with 33% currently using it and prescriptions for Zepbound vials rising over 100% recently [3] Clinical Impact - A study of 3,260 WeightWatchers Clinic patients showed an average weight loss of 21% at 12 months, indicating the effectiveness of combining GLP-1 medications like Zepbound with WeightWatchers' lifestyle support [3]

Core Viewpoint - WW International, known as WeightWatchers, is preparing to file for bankruptcy to transfer control of the business to its creditors, with shares plummeting nearly 59% to 18 cents [1]. Company Summary - The company has struggled to remain relevant due to the rise of effective weight-loss drugs like Novo Nordisk's Wegovy, which provide quicker solutions to obesity [2]. - WeightWatchers is currently negotiating with lenders and bondholders, a process that is not related to market conditions or tariffs [3]. - The firm, which previously offered nutrition and behavior-change programs, acquired the subscription-based telehealth platform Sequence in 2023 to expand into obesity drug prescriptions [3]. - WeightWatchers' stock, which peaked at $100 in 2018, has significantly declined due to revenue drops, liquidity issues, and the departure of celebrity shareholder Oprah Winfrey from its board [4]. - The company has also faced challenges from competing weight-loss drugs like Ozempic [6].

Subscriber and Revenue Trends - The company had approximately 2.7 million Digital subscribers and 0.5 million Workshops + Digital subscribers by the end of fiscal 2024[34][35]. - The Clinical business, launched in 2023, had around 0.1 million Clinical subscribers by the end of fiscal 2024[38]. - Sales of consumer products represented approximately 6.2% of total revenues in fiscal 2023, but the company decided to close this lower-margin business[32]. - Total revenues for fiscal 2024 decreased by 11.6% to $785.9 million compared to $889.6 million in fiscal 2023[221]. - Subscription revenues for fiscal 2024 decreased by 5.6% to $777.0 million, primarily due to a decline in Digital Subscription Revenues and Workshops + Digital Subscription Revenues[222]. - Other revenues for fiscal 2024 decreased by 86.6% to $8.9 million, primarily driven by the closure of the consumer products business at the end of fiscal 2023[222]. - End of Period Subscribers for fiscal 2024 decreased by 12.2% compared to the prior year, indicating challenges in recruitment and retention[222]. Business Strategy and Market Position - The company’s GLP-1 Program was launched in the U.S., U.K., and Germany in December 2023, targeting individuals taking GLP-1 medications[27]. - The company’s behavior change programs are supported by over 180 peer-reviewed scientific studies, demonstrating their effectiveness[40]. - The company was recognized by U.S. News & World Report as the 1 "Best Weight-Loss Diet" for the fifteenth consecutive year in 2025[43]. - The company’s marketing strategy leverages data-driven approaches and social media engagement to attract new and returning members[44][45]. - The company’s business is seasonal, with the highest member recruitment typically occurring in the first quarter of the year[46]. - The company’s subscriber base is crucial for revenue generation, and future growth depends on retaining and expanding this base[76]. - The company’s future success relies on its ability to innovate and respond to changing consumer demands in the weight management sector[79]. Acquisitions and Partnerships - The acquisition of Sequence, a telehealth platform, was completed on April 10, 2023, expanding the company's offerings to include clinical interventions and addressing consumer demand for GLP-1 medications[52]. - The company completed the acquisition of Weekend Health, Inc. in 2023, but future acquisitions may face challenges in terms of integration and market perception, which could adversely affect financial performance[101]. - The company has a strategic collaboration agreement with Ms. Winfrey, which includes her consulting on program development and marketing initiatives[54]. - The acquisition of Sequence on April 10, 2023, is expected to generate revenue synergies and operating efficiencies, but achieving these benefits is uncertain[161]. Financial Health and Debt Management - As of December 28, 2024, the company's total debt was $1,445.0 million, with an additional $171.3 million borrowed in January 2025, leading to a significant exposure to variable interest rates[111]. - The company's consolidated first lien secured net leverage ratio was 8.36:1.00 as of December 28, 2024, exceeding the required ratio of 5.25:1.00, which may lead to default under the Revolving Credit Facility[114]. - The company made a significant cash payment of $16.0 million related to the acquisition of Sequence, impacting its liquidity in fiscal 2025[119]. - The company is actively evaluating its capital structure and intends to engage with lenders to strengthen its balance sheet by reducing leverage and interest expenses[118]. - The company may not be able to generate sufficient cash to service all of its debt obligations, which could impact its liquidity and financial flexibility[117]. Regulatory and Compliance Challenges - The company must navigate a complex regulatory landscape regarding its clinical offerings, particularly concerning compounded medications[81]. - The company is committed to monitoring and complying with evolving laws and regulations affecting its operations and advertising practices[59]. - The healthcare industry is subject to extensive and complex laws and regulations, which may lead to civil or criminal penalties if not complied with[139]. - The regulatory landscape for telehealth services is constantly evolving, which may result in increased compliance costs and operational impacts[144]. - The company may face significant monetary penalties under the Federal Civil False Claims Act for submitting false claims[150]. Cybersecurity and Data Privacy - The company has developed a comprehensive cybersecurity program to protect confidential information and mitigate risks associated with cybersecurity threats[176]. - The company is subject to evolving data privacy regulations, such as GDPR and CCPA, which could increase compliance costs and impact operations[125]. - The company maintains cybersecurity insurance, but costs related to cybersecurity threats may not be fully covered[182]. - The company has a cybersecurity management team that includes the CISO, Data Privacy Officer, CLRO, CFO, and Head of Internal Audit, which meets regularly to review cybersecurity strategies and risk posture[179]. Leadership and Workforce - The company has approximately 3,700 employees across 11 countries as of December 31, 2024, with a majority being part-time employees[62]. - All current executive officers, including the CEO and CFO, are women, reflecting the company's commitment to diversity and inclusion[63]. - The executive team includes Tara Comonte as President and CEO, Felicia DellaFortuna as CFO, and Donna Boyer as Chief Product Officer, among others[190]. - Tara Comonte has over two decades of executive leadership experience and previously served as CEO of TMRW Life Sciences[192]. Market Competition and Challenges - The company faces significant competition in the weight management and health and wellness market, which includes various service providers and products[73]. - The clinical weight management market is rapidly evolving, with increased competition from telehealth providers and traditional healthcare entities[74]. - The company is continually evaluating the changing consumer and competitive environment in the weight management and health and wellness marketplaces[83]. - The company faces risks related to the performance of collaboration partners, which could impact the success of its Clinical business and overall financial condition[102].

Financial Data and Key Metrics Changes - Q4 2024 revenue totaled $184 million, down 10% year-over-year, reflecting continued headwinds in digital and workshop businesses and the closure of the consumer products business [55][48] - Full year 2024 revenue was $786 million, a decline of 12% compared to the prior year, but above prior guidance of at least $770 million [48] - Adjusted gross margin was 69.1% in Q4, up from 61.4% in the prior year, driven by cost actions and the closure of the lower gross margin consumer products business [55][50] - Adjusted EBITDA margin was 27.4% in Q4, the highest level since Q3 2022 [40][50] Business Line Data and Key Metrics Changes - Behavioral business revenue declined 12%, while clinical business revenue grew by 58% [11] - Clinical subscribers increased to 92,000, growing 18% from Q3 and 38% year-over-year [48] - Subscription revenue overall was down 7% in Q4, with clinical revenue totaling $78 million [55][49] Market Data and Key Metrics Changes - The company entered 2025 with a revenue headwind of approximately $45 million due to a lower ending subscriber base in 2024 [14] - The clinical business is expected to drive future growth, with strong performance noted in Q4 and a strong start to Q1 2025 [28][49] Company Strategy and Development Direction - The company aims to stabilize and lay the groundwork for sustained future growth, focusing on improving the end-to-end member experience [15][17] - A commitment to removing $100 million in run rate costs by the end of 2025 has been established, with significant progress already made [15][37] - The integration of the Weekend Health acquisition is a priority, enhancing the continuum of care for members [18][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the existing capital structure and the need for investments to drive growth [16][42] - The company is optimistic about the long-term potential of the weight loss medication market, despite current supply challenges [32][30] - Management emphasized the importance of balancing short-term stability with long-term growth strategies [63][64] Other Important Information - The company ended 2024 with $53 million in cash and cash equivalents, with cash flow from operations being positive when excluding one-time restructuring payments and interest [51][54] - The company has engaged strategic advisers to assess its capital structure strategy moving forward [43] Q&A Session Summary Question: Trends during peak season and marketing environment - Management noted encouraging trends in product launches and engagement metrics, despite ongoing challenges in the behavioral business [67][70] Question: Importance of generic GLP-1 to clinic performance - The addition of compounded medications helped alleviate shortages and improve key metrics, with expectations for a return to branded medications as supply improves [78][80] Question: Avoiding a downward cycle with fewer subscribers - Management emphasized the value proposition of Weight Watchers and the need for innovation and product improvements to regain growth [90][92] Question: Subscriber growth and cash flow generation - Management indicated that while subscriber counts are challenged, the increase in average revenue per user (ARPU) is encouraging, and clinical subscriber growth is expected to continue [100][102] Question: Strategies regarding compounded semaglutide - Management expressed confidence in returning to branded medications as supply improves and is actively evaluating options for additional medications [106][112]