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WW International, Inc. (WW)
NASDAQ:WW
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WW International, Inc.
(NASDAQ:WW)
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Rating:46Neutral
Price Target:
$26.00
▼(-4.13% Downside)
WW International's overall stock score is primarily impacted by its financial instability, characterized by declining revenues and high leverage. Technical indicators suggest a bearish trend, while the low P/E ratio indicates potential undervaluation but also market skepticism about future earnings. Strategic initiatives from the earnings call provide some optimism, but challenges remain significant.
Positive Factors
Clinical Subscription Growth
The strong growth in clinical subscriptions indicates a successful expansion into medical-based weight management, enhancing long-term revenue potential and market positioning.
Digital Transformation
The digital transformation efforts aim to improve user experience and engagement, which can drive subscriber growth and retention, supporting sustainable revenue streams.
WeightWatchers Clinic Launch
The launch of the WeightWatchers Clinic integrates medical expertise, expanding the company's service offerings and potentially increasing its competitive edge in the wellness market.
Negative Factors
Revenue Decline
The decline in revenue, particularly in behavioral segments, reflects ongoing challenges in maintaining subscriber base and market share, impacting financial stability.
High Leverage
High leverage and negative equity suggest financial instability, limiting the company's ability to invest in growth initiatives and increasing risk during economic downturns.
Behavioral Subscriber Decline
The significant drop in behavioral subscribers indicates challenges in the core business model, potentially affecting long-term revenue and market position.
WW International, Inc. (WW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$343.85M
Dividend YieldN/A
Average Volume (3M)254.35K
Price to Earnings (P/E)0.3
Beta (1Y)1.95
Revenue Growth-9.32%
EPS GrowthN/A
CountryUS
Employees3,700
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)-5.76
Shares Outstanding9,986,928
10 Day Avg. Volume187,967
30 Day Avg. Volume254,350
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.09
Price to Sales (P/S)0.13
P/FCF Ratio-5.80
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit1.09
Enterprise Value/Ebitda0.46
Forecast
1Y Price Target
$38.00Price Target Upside40.12% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
WW International, Inc. Business Overview & Revenue Model
Company DescriptionWW International, Inc. (formerly Weight Watchers International, Inc.) is a global wellness company known for its weight management and healthy living programs. The company operates in the health and wellness sector, providing a range of services and products designed to help individuals achieve their weight loss and health goals. WW offers subscription-based digital services, in-person workshops, and a variety of branded products including food items, cookbooks, and fitness accessories. The company emphasizes a holistic approach to weight management, combining nutrition, physical activity, and behavioral strategies.
How the Company Makes MoneyWW International generates revenue primarily through its subscription services, which include digital memberships that offer access to personalized weight loss plans, tracking tools, and community support. The company also earns income from in-person workshops and meetings where members receive guidance and motivation. Additionally, WW sells branded food products, cookbooks, and other wellness-related merchandise. Significant partnerships with retailers and food companies enhance its product offerings and market reach, contributing to its overall earnings. The company's focus on expanding its digital platform and enhancing member engagement through technology also plays a crucial role in driving revenue growth.
WW International, Inc. Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The call highlighted strategic initiatives such as the launch of the WeightWatchers Clinic and menopause program, alongside strong clinical subscriber growth. However, these positive developments were offset by a decline in behavioral subscribers and overall revenue. The company is undergoing a significant digital transformation to address these challenges.Q3-2025 Updates
Positive Updates
Strong Clinic Performance
Clinical end-of-period subscribers increased by 60% compared to the same quarter last year, with a retention rate that exceeded expectations. Approximately 20% of members previously prescribed compounded semaglutide transitioned to branded or oral medications.
Introduction of WeightWatchers Clinic
WeightWatchers acquired Weekend Health, rebranded to WeightWatchers Clinic, integrating medical expertise and prescription access into their program, broadening their science-backed model to include clinical care.
Launch of Menopause Program
WeightWatchers launched a new menopause program offering evidence-based support and medication access, which has been well received, driving encouraging engagement among existing members.
Digital Transformation Initiatives
WeightWatchers is modernizing its digital ecosystem, including a replatforming of its app and website, aimed at creating a seamless and personalized member experience.
Negative Updates
Decline in Behavioral Subscribers
Behavioral end-of-period subscribers declined 20% year-over-year, reflecting ongoing challenges in the behavioral sector of the business.
Overall Revenue Decline
Total revenue fell 11% year-over-year, with behavioral revenue declining by 16%.
Challenges from Compounded GLP-1 Medications
The landscape for compounded GLP-1 medications remains complex, affecting the clinical subscriber growth and presenting challenging comps moving forward.
Company Guidance
In the WeightWatchers International Third Quarter 2025 Results Conference Call, the company provided guidance highlighting several key metrics and strategic priorities. They reported a 60% year-over-year increase in clinical end-of-period subscribers, totaling 124,000, despite a 20% decline in behavioral subscribers to 2.9 million. WeightWatchers emphasized the success of their WeightWatchers Clinic, noting that members using GLP-1 medications achieved an average weight loss of 19% to 23% over three years. The company also discussed a significant brand refresh and digital transformation, with plans to launch a new app and website by early next year. Financially, they reported a revenue of $172 million for the quarter, with a strong adjusted EBITDA margin of nearly 25%. For the full year fiscal 2025, they narrowed their guidance to the higher end of previous ranges, expecting revenue between $695 million and $700 million and adjusted EBITDA between $145 million and $150 million.WW International, Inc. Financial Statement Overview
Summary
WW International, Inc. faces significant financial challenges, with declining revenues and high leverage. Despite recent improvements in net profit and free cash flow, the company's financial stability remains a concern due to historical volatility and negative equity.Income Statement
The income statement shows a declining revenue trend with a negative growth rate over the periods. Despite a high net profit margin in the TTM, historical data indicates volatility with periods of negative net income. Gross profit margins have been relatively stable but are overshadowed by inconsistent EBIT and EBITDA margins, reflecting operational challenges.Balance Sheet
The balance sheet reveals high leverage with a consistently negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is unfavorable, and the return on equity is erratic, suggesting potential risks in financial health and sustainability.Cash Flow
Cash flow analysis shows improvement in free cash flow growth in the TTM, but historical periods have seen negative free cash flow and operating cash flow. The operating cash flow to net income ratio is low, indicating potential cash flow management issues despite recent improvements.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 718.91M | 785.92M | 889.55M | 1.04B | 1.21B | 1.38B |
| Gross Profit | 516.01M | 533.10M | 529.30M | 621.38M | 726.67M | 777.84M |
| EBITDA | 1.24B | -198.44M | 74.73M | -241.86M | 213.44M | 266.49M |
| Net Income | 1.09B | -345.70M | -112.25M | -256.87M | 67.13M | 75.08M |
Balance Sheet | ||||||
| Total Assets | 968.75M | 550.28M | 982.03M | 1.03B | 1.43B | 1.48B |
| Cash, Cash Equivalents and Short-Term Investments | 170.15M | 53.02M | 109.37M | 178.33M | 153.79M | 165.89M |
| Total Debt | 468.95M | 1.48B | 1.49B | 1.51B | 1.52B | 1.62B |
| Total Liabilities | 645.76M | 1.66B | 1.74B | 1.71B | 1.89B | 2.03B |
| Stockholders Equity | 322.99M | -1.11B | -761.09M | -685.78M | -456.40M | -548.21M |
Cash Flow | ||||||
| Free Cash Flow | -27.85M | -33.25M | -29.61M | 38.39M | 119.63M | 114.45M |
| Operating Cash Flow | -21.40M | -16.84M | 6.69M | 76.65M | 157.28M | 135.94M |
| Investing Cash Flow | -14.24M | -16.41M | -74.70M | -42.64M | -52.75M | -65.59M |
| Financing Cash Flow | 153.69M | -17.34M | -2.75M | -4.72M | -111.54M | -95.54M |
WW International, Inc. Risk Analysis
WW International, Inc. disclosed 45 risk factors in its most recent earnings report. WW International, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WW International, Inc. Peers Comparison
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.