Weight Watchers (WW) investor relations material

Executive summary

• Q3 revenue was $152.9M, down 11.2% YoY; net income was $15.1M versus a $57.5M loss in Q3 2025.

• Clinical subscription revenue grew 47.6% YoY, while Behavioral declines weighed on revenue.

• Adjusted EBITDA rose 21% to $51.7M, with a 33.8% margin; management is targeting sustainable profitability in 2027.

Financial highlights

• Q3 revenue was $152.9M, including $38.0M Clinical and $113.9M Behavioral subscription revenue; gross profit was $108.7M.

• Operating income was $36.5M versus $8.0M in Q3 2025; diluted EPS was $1.51 versus a loss of $5.76.

• Adjusted EBITDA rose to $51.7M from $42.8M; reported results included non-recurring transaction and executive-related costs.

• Operating cash flow was $32.3M; cash and cash equivalents were $126.4M at quarter-end, up from $101.5M at Q2-end.

• Adjusted gross margin was 74.6%; marketing expense was $33.1M, or 21.6% of revenue, versus $48.4M, or 28.1%, a year earlier.

Outlook and guidance

• FY2026 revenue guidance narrowed to $625M–$630M from $620M–$635M; Adjusted EBITDA guidance narrowed to $110M–$115M from $105M–$115M.

• Clinical subscription revenue is expected to represent ~25% of FY2026 revenue, versus ~16% in 2025; adjusted gross margin guidance is ~74%.

• Core+ subscribers are expected to grow YoY; Q4 clinical subscribers are expected to decline sequentially, but less than in Q3.

• FY2026 marketing expense as a percentage of revenue is expected to rise modestly YoY; Q4 spending is expected to increase from Q3, while H2 investment remains below H1.

• Positive operating cash flow is expected for FY2026; interest costs are forecast at $45M–$50M, and H2 Adjusted EBITDA is expected to exceed H2 2025.