What WW International (WW) Said on Its Q3 Earnings Call

Key Points

• Revenue declined 11% to $152.9 million as a 22% drop in behavioral subscription revenue outweighed 48% growth in clinical revenue. Adjusted EBITDA increased 21% to $51.7 million, with margins helped by lower marketing spending and operating efficiencies.
• Subscriber trends were mixed: behavioral subscribers fell 26% to about 2.1 million, while higher-priced Core+ subscribers grew 16% to 546,000 and clinical subscribers rose 40% year over year to 174,000. Monthly subscription revenue per average subscriber increased 14% to $21.
• WW narrowed its 2026 outlook to revenue of $625 million–$630 million and adjusted EBITDA of $110 million–$115 million. CEO Stephen Bye said the company is targeting sustainable, profitable growth in 2027, positioning its behavioral and community support for people using weight-loss medications as well as those who are not.

WW International NASDAQ: WW, the company behind WeightWatchers, reported lower third-quarter revenue as losses in its core behavioral subscription business outweighed growth in its clinical and higher-priced offerings. The company nevertheless posted higher adjusted earnings and narrowed its full-year outlook.

Revenue fell 11% to $152.9 million from $172.1 million a year earlier. Adjusted EBITDA rose 21% to $51.7 million, while net income was $15.1 million and operating cash flow totaled $32.3 million.

On his first earnings call as chief executive, Stephen Bye said the company was not living up to its potential but was positioned to return to sustainable, profitable growth in 2027. He said WeightWatchers aims to distinguish itself by providing nutritional, behavioral and community support to people both on and off weight-loss medication.

Higher-value subscriptions grow as Core declines

WeightWatchers ended the quarter with approximately 2.3 million subscribers. Behavioral subscribers fell 26% year over year to approximately 2.1 million, with the decline concentrated in the Core tier, Chief Financial Officer Felicia DellaFortuna said.

The higher-priced Core+ tier ended the quarter with 546,000 subscribers, up 16% from a year earlier. It marked the fourth consecutive quarter of sequential Core+ subscriber growth, a milestone the company said it had not achieved in 20 years. Core+ accounted for nearly a quarter of total subscribers, compared with 16% a year earlier.

DellaFortuna said adoption of the GLP-1 Success Program within Core+ had more than doubled since January. The program provides behavioral support to members who use weight-loss medications, including those who obtain prescriptions outside WeightWatchers. She also said approximately 20% of Core+ signups came from Core members.

Clinical subscribers rose 40% year over year to 174,000, but declined from 197,000 at the end of June. DellaFortuna said the sequential decrease largely reflected renewals of 12-month plans introduced when the company transitioned away from compounded semaglutide in 2025. A shift in marketing spending across the portfolio also contributed.

Behavioral subscription revenue fell 22% to $113.9 million, while clinical subscription revenue increased 48% to $38 million. Clinical subscriptions represented approximately 25% of total revenue, up from 15% a year earlier. Overall monthly subscription revenue per average subscriber rose 14% to $21 as customers shifted toward higher-value offerings.

Margins improve amid lower marketing spending

Adjusted gross margin reached 74.6%, the company’s highest level of 2026. DellaFortuna attributed the performance in part to workflow automation and more efficient service delivery, despite clinical subscriptions, which have higher service costs, accounting for a greater share of revenue.

Marketing expense declined to $33.1 million, or 21.6% of revenue, from $48.4 million, or 28.1% of revenue, a year earlier. Adjusted EBITDA margin expanded to 33.8% from 24.9%.

Asked how much of the earnings performance reflected marketing timing versus lasting improvements, DellaFortuna pointed to cost changes across service delivery, product and technology, and administrative expenses. She also said marketing spending would increase from the third quarter to the fourth as the company prepares for the 2027 peak season.

WeightWatchers ended September with $126.4 million in cash and cash equivalents, up approximately $25 million from the end of June. Following its June 2025 financial reorganization, the company has reduced total debt by more than 70%, from approximately $1.6 billion to $423.6 million, DellaFortuna said.

Outlook and GLP-1 strategy

The company narrowed its 2026 revenue guidance to $625 million to $630 million from $620 million to $635 million. It also narrowed its adjusted EBITDA range to $110 million to $115 million, compared with $105 million to $115 million previously.

Management expects a moderate sequential decline in clinical subscribers in the fourth quarter, though at a lower level than in the third. DellaFortuna said the fourth quarter does not include a comparable group of 12-month plans coming up for renewal. The company expects full-year adjusted gross margin of approximately 74%, compared with its previous forecast of more than 72%.

DellaFortuna said a concentrated first-quarter marketing investment increased awareness of Med+, but those gains did not last through the year as anticipated. The company is developing a more diversified marketing approach to reach prospective members, she said.

Bye said broader access to GLP-1 medications could expand the market for WeightWatchers’ support services. Chief Operating Officer Jon Volkmann said the company is working to improve its clinical intake process and provide earlier information about medication costs. Volkmann also said WeightWatchers can support eligible seniors through the Medicare GLP-1 Bridge Program, either through Med+ or through Core+ when prescriptions come from an outside physician.

About WW International (NASDAQ:WW)

WW International, Inc, formerly known as Weight Watchers, is a global wellness company focused on helping people manage their weight and improve their overall health. The company provides personalized programs built around nutrition, physical activity, behavior change and lifestyle support.

WW's offerings have historically included digital subscriptions, personalized meal and activity guidance, health and wellness content, mobile applications, virtual coaching and community-based support.

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