Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $172 million, a decline of 11% year over year [25] - Adjusted EBITDA was $43 million, with an adjusted EBITDA margin of 24.9% [28] - Monthly subscription revenue per average subscriber (ARPU) was $18.52, increasing 9% year over year but declining sequentially [26] - Cash and cash equivalents at the end of Q3 were $170 million, up from $152 million at the end of Q2 [29] Business Line Data and Key Metrics Changes - Behavioral subscribers at the end of Q3 were 2.9 million, a decline of 20% year over year [24] - Clinical subscribers increased to 124,000, a growth of 60% compared to the same quarter last year [24] - Clinical revenue grew 35% year over year, while behavioral revenue declined 16% year over year [25] Market Data and Key Metrics Changes - 12% of U.S. adults are now taking GLP-1 medications, with demand continuing to rise [9] - 137 million Americans are eligible for GLP-1 medications, representing a significant market opportunity [9] Company Strategy and Development Direction - The company is focused on delivering an engaging, unified end-to-end member experience through digital transformation, including a revamped app and website [10][12] - Plans to grow the emerging medical business and diversify revenue streams, particularly through the Weight Watchers Clinic and GLP-1 companion programs [14][15] - A comprehensive brand refresh is underway to modernize the Weight Watchers brand and reclaim market leadership [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the behavioral business but sees opportunities in the evolving weight management landscape, particularly with GLP-1 medications [31] - The company expects Q3 2025 to represent the low point in clinical subscribers, with a positive outlook for future growth [25][31] - Full-year fiscal 2025 guidance has been narrowed to the higher end of previously provided ranges, expecting revenue of $695 million-$700 million and adjusted EBITDA of $145 million-$150 million [32] Other Important Information - The company is integrating medical expertise and prescription access into its programs through the acquisition of Weekend Health, now rebranded as Weight Watchers Clinic [5] - The launch of Weight Watchers for Menopause aims to address the needs of women undergoing hormonal changes, with a focus on weight health [17][39] Q&A Session Summary Question: When will the redesigned app be available to members? - The first version of the new app is targeted to launch by early next year in time for peak season [34] Question: Can you elaborate on the partnerships with pharmaceutical companies and Amazon? - Strategic partnerships with pharmaceutical players and Amazon are aimed at making medication access faster and more affordable for members [36][37] Question: How is the retention of clinical subscribers performing? - The transition from compounded medications has exceeded expectations, with approximately 20% of members successfully converted to ongoing clinical programs [41][42] Question: What are the plans for product and marketing during the peak season? - The company is focused on a top-to-bottom digital rebuild, brand refresh, and showcasing programs to drive awareness and engagement [48][49]