WW International Inc.(WW) - 2025 Q3 - Quarterly Results

Subscriber Metrics - End of Period Subscribers reached 3.0 million, including 124 thousand Clinical Subscribers[1] - The number of incoming behavioral subscribers for the three months ended September 30, 2025, was 3,040, a decrease of 19.0% from 3,756 in the prior year[43] - The end of period behavioral subscribers decreased by 20.2% to 2,862 as of September 30, 2025, compared to 3,589 in the same period last year[43] Revenue Performance - Total Revenues amounted to $172 million, with Clinical Subscription Revenues of $26 million, reflecting a 35% year-over-year increase[1][4] - Total revenues for Q3 2025 were $172.09 million, down 10.8% from $192.89 million in Q3 2024[25] - Total revenues for the three months ended September 30, 2025, were $172,091, a decrease of 10.8% compared to $192,887 for the same period in 2024[35] - Total revenues for the nine months ended September 30, 2025, were $547,826, reflecting an 8.9% decline from $601,508 in the prior year[39] Clinical and Behavioral Revenue - Clinical Subscription Revenue growth was strong at 35.3% year-over-year, with better-than-expected retention of members prescribed compounded semaglutide[4] - Behavioral subscription revenues for the three months ended September 30, 2025, were $145,152, down 15.7% from $172,194 in the prior year[35] - Behavioral subscription revenues for the nine months ended September 30, 2025, were $458,133, down 14.8% from $537,731 in the previous year[39] Profitability and Loss - Net Loss was $58 million, resulting in a Net Loss Margin of 33.4%; Adjusted EBITDA was $43 million with a margin of 24.9%[1][4] - Net loss for Q3 2025 was $57.52 million, compared to a net loss of $46.19 million in Q3 2024[25] - The company reported a net loss of $57,516 for the three months ended September 30, 2025, compared to a net loss of $56,262 for the previous period, reflecting a margin of (33.4%) versus (30.5%) in the prior period[58] Cash and Debt Management - Total debt was reduced by over 70% to approximately $1.1 billion, while Cash increased to $170 million from $152 million at the end of Q2[4] - Cash and cash equivalents increased to $170.15 million as of September 30, 2025, up from $53.02 million as of December 28, 2024[23] - Cash provided by operating activities for the period was $8,418, a significant improvement from cash used of $(34,423) in the previous period[33] Strategic Initiatives and Leadership - The company launched key initiatives, including a new Menopause program, and made strong progress in brand, digital, and clinical innovation[4] - The company added senior leaders across technology, experience, and international to enhance the executive team and accelerate execution[4] - The company is focusing on strategic initiatives to enhance its service offerings and expand into new distribution channels[20] Guidance and Future Outlook - The company narrowed its 2025 Guidance for Revenues to $695 - $700 million and Adjusted EBITDA to $145 - $150 million[4][9] - The company plans to continue its restructuring efforts as part of its strategic realignment[55] Financial Adjustments and Charges - The company incurred total adjustments of $5,158 for the three months ended September 30, 2025, primarily due to restructuring charges and transaction costs[50] - The company reported a restructuring charge of $23,000 for the three months ended September 30, 2025[54] - Restructuring charges amounted to $122, reflecting expenses associated with headcount reduction due to strategic realignments[61] Asset and Liability Management - Total assets as of September 30, 2025, were $968.75 million, an increase from $550.28 million as of December 28, 2024[23] - Total liabilities decreased to $645.76 million as of September 30, 2025, down from $1.66 billion as of December 28, 2024[23] Operating Performance - Operating income for Q3 2025 was $8.04 million, a significant improvement from an operating loss of $39.05 million in Q3 2024[25] - EBITDA for the three months ended September 30, 2025, was $33,186, with an EBITDA margin of 19.3%, slightly down from $36,521 and 19.8% in the previous period[58] - Adjusted EBITDA for the same period was $42,776, with an adjusted EBITDA margin of 24.9%, compared to $47,225 and 25.6% in the prior period[58]