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WW International, Inc. (WW)
:WW
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WW International, Inc.
(NASDAQ:WW)
Rating:33Underperform
Price Target:―
Positive Factors
Profitability
WW's cost reduction program is starting to bear fruit with strong 4Q profitability.
Revenue Growth
Revenue estimates are increasing due to clinic strength.
Negative Factors
Market Visibility
There is heavy pressure on the behavioral business with no FY25 guidance, leading to limited visibility into trends.
Marketing Challenges
2025 is off to a rocky start in the core behavioral business as the marketing environment remains challenging.
WW International, Inc. (WW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$319.28M
Dividend YieldN/A
Average Volume (3M)366.51K
Price to Earnings (P/E)0.3
Beta (1Y)0.03
Revenue Growth-10.33%
EPS Growth79.59%
CountryUS
Employees3,700
SectorConsumer Cyclical
Sector Strength83
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)9.70
Shares Outstanding9,986,928
10 Day Avg. Volume146,973
30 Day Avg. Volume366,512
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.86
Enterprise Value/Revenue0.78
Enterprise Value/Gross Profit1.12
Enterprise Value/Ebitda13.10
Forecast
1Y Price Target
$41.00Price Target Upside28.25% Upside
Rating ConsensusHold
Number of Analyst Covering1
WW International, Inc. Business Overview & Revenue Model
Company DescriptionWW International, Inc. provides weight management products and services worldwide. The company operates in four segments: North America, Continental Europe, United Kingdom, and Other. It offers a range of nutritional, activity, behavioral, and lifestyle tools and approaches products and services. The company also provides various digital subscription products to wellness and weight management business, which provide interactive and personalized resources that allow users to follow its weight management program through its app and Web-based products, including personal coaching and digital products; and allows members to inspire and support each other by sharing their experiences with other people on weight management and wellness journeys. In addition, it offers various consumer products, including bars, snacks, cookbooks, kitchen tools, and other products. Further, the company licenses its trademarks and other intellectual property in food, beverages, and other relevant consumer products and services, as well as provides publishing services. It offers products through e-commerce platforms and through partners. The company was formerly known as Weight Watchers International, Inc. and changed its name to WW International, Inc. in September 2019. WW International, Inc. was founded in 1961 and is headquartered in New York, New York.
How the Company Makes MoneyWW International generates revenue primarily through its subscription-based model. The company's key revenue streams include digital subscription packages, which provide access to the WW app and online community, as well as in-person and virtual workshops that offer guidance and support from trained coaches. Additionally, WW International earns from sales of branded products, including food items and wellness tools. Partnerships with other companies in the health and wellness space, as well as corporate wellness programs, also contribute to its earnings.
WW International, Inc. Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant strategic moves, including substantial debt reduction and leadership changes, which position the company for future growth. However, challenges remain, particularly in subscriber retention and revenue generation, exacerbated by the transition away from compounded medications and past bankruptcy proceedings.Q2-2025 Updates
Positive Updates
Debt Reduction and NASDAQ Relisting
WeightWatchers reduced its debt by more than 70%, freeing up approximately $50 million of cash annually from lower interest expense, and is now relisted on NASDAQ under the ticker WW.
Growth in Clinical Subscribers and ARPU
Monthly subscription revenues per average subscriber (ARPU) increased 12% year-over-year in the second quarter, marking the third consecutive quarter of ARPU expansion. Clinical subscribers grew year-over-year by 56%.
New Leadership Appointments
Notable leadership additions include Julie Rice as Chief Experience Officer and Dr. Kim Boyd as Chief Medical Officer, enhancing the company's focus on experience and clinical offerings.
Strong Adjusted EBITDA Margin
Adjusted EBITDA margin was 34% in the predecessor period, up more than 900 basis points year-over-year, driven by disciplined cost management and lower marketing spend.
Negative Updates
Decline in Behavioral Subscribers
Total end-of-period subscribers declined 17% year-over-year, with behavioral member acquisition remaining challenged, further impacted by extensive bankruptcy-related media coverage.
Clinical Subscriber Transition Challenges
The transition away from compounded semaglutide to FDA-approved medications posed challenges, with cash-pay prices for branded GLP-1s still significantly higher than compounded alternatives.
Revenue Decline
Revenues of $189 million declined 6% versus the prior year due to ongoing acquisition challenges in the behavioral business, which declined 13% year-over-year.
Consumer Sentiment Impacted by Bankruptcy Headlines
Residual noise from bankruptcy-related headlines affected consumer sentiment and acquisition, and this influence is expected to continue into the next fiscal year.
Company Guidance
During the WeightWatchers Second Quarter 2025 Earnings Conference Call, it was highlighted that the company has made significant strides in its strategic reorganization, reducing its debt by over 70% to $465 million, which is expected to free up approximately $50 million of cash annually from lower interest expenses. The company also reported a 12% year-over-year increase in monthly subscription revenues per average subscriber (ARPU) and a 56% year-over-year growth in Clinical subscribers. However, total end-of-period subscribers declined by 17% year-over-year, ending at 3.2 million, partly due to challenges in behavioral member acquisition and the transition of Clinical members from compounded semaglutide to FDA-approved medications. The company achieved a 34% adjusted EBITDA margin and reported revenues of $189 million, down 6% from the previous year. Moving forward, WeightWatchers expects total combined revenues of $685 million to $700 million and adjusted EBITDA of $140 million to $150 million for fiscal 2025. The company is focused on restoring profitable growth through strategic investments and a clearer strategic direction.WW International, Inc. Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 765.94M | 785.92M | 889.55M | 1.04B | 1.21B | 1.38B |
| Gross Profit | 528.14M | 533.10M | 529.30M | 622.40M | 726.36M | 777.84M |
| EBITDA | 45.31M | -194.89M | 74.73M | -244.95M | 266.68M | 336.28M |
| Net Income | -70.39M | -345.70M | -112.25M | -251.40M | 67.13M | 75.08M |
Balance Sheet | ||||||
| Total Assets | 696.87M | 550.28M | 982.03M | 1.03B | 1.43B | 1.48B |
| Cash, Cash Equivalents and Short-Term Investments | 236.35M | 53.02M | 109.37M | 178.33M | 153.79M | 165.89M |
| Total Debt | 1.65B | 1.48B | 1.49B | 1.51B | 1.52B | 1.62B |
| Total Liabilities | 1.88B | 1.66B | 1.74B | 1.71B | 1.89B | 2.03B |
| Stockholders Equity | -1.18B | -1.11B | -761.09M | -683.82M | -456.40M | -548.21M |
Cash Flow | ||||||
| Free Cash Flow | 19.42M | -17.56M | -29.61M | 38.39M | 119.63M | 85.51M |
| Operating Cash Flow | 34.19M | -16.84M | 6.69M | 76.65M | 157.28M | 135.94M |
| Investing Cash Flow | -14.78M | -16.41M | -74.70M | -42.64M | -52.75M | -65.59M |
| Financing Cash Flow | 154.52M | -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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $17.96B | 13.14 | -5.29% | 3.00% | 1.25% | -13.95% | |
60 Neutral | $11.38M | 8.19 | 23.48% | ― | 12.93% | 66.81% | |
49 Neutral | $152.23M | 42.02 | 1.73% | ― | -37.62% | -87.69% | |
41 Neutral | $6.08M | ― | -259.91% | ― | 373.32% | 98.46% | |
33 Underperform | $319.28M | 0.27 | 31.02% | ― | -10.33% | 79.59% |
* Consumer Cyclical Sector Average
Performance Comparison
WW
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1.64
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TRNR
Interactive Strength Inc
3.15
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WW International, Inc. Corporate Events
Delistings and Listing ChangesLegal Proceedings
WW International Faces Nasdaq Delisting Amid Bankruptcy
Negative
May 9, 2025
On May 9, 2025, WW International, Inc. received a notice from Nasdaq indicating the delisting of its common stock due to the company’s voluntary Chapter 11 bankruptcy filing on May 6, 2025. The company plans to appeal the delisting and intends to list its new common equity on Nasdaq or another national exchange post-reorganization. Meanwhile, its stock will trade on the Pink Current Market, though there are uncertainties about its trading volume and broker-dealer support.
Spark’s Take on WW Stock
According to Spark, TipRanks’ AI Analyst, WW is a Neutral.
WW International’s stock score reflects significant financial struggles, with declining revenues and negative cash flows. The bankruptcy filing exacerbates financial instability, overshadowing positive strategic measures discussed in the earnings call. Technical indicators show limited positive momentum, and the valuation remains unattractive due to ongoing financial challenges.
To see Spark’s full report on WW stock, click here.
Legal ProceedingsBusiness Operations and Strategy
WW International Files for Chapter 11 Bankruptcy
Negative
May 7, 2025
On May 6, 2025, WW International, Inc. filed for Chapter 11 bankruptcy to implement a financial restructuring plan aimed at reorganizing its secured debt. The company has entered into a Restructuring Support Agreement with major creditors to support this reorganization, which includes milestones and conditions for its execution. The plan ensures that vendors and unsecured creditors will be paid in full, and it outlines the distribution of equity in the reorganized company. The restructuring is expected to impact the company’s operations and stakeholder interests, with equity holders potentially facing significant losses.
Spark’s Take on WW Stock
According to Spark, TipRanks’ AI Analyst, WW is a Neutral.
WW International’s stock score reflects significant financial struggles, with declining revenues and negative cash flows. The earnings call provides some optimism with strategic initiatives and cost-saving measures, but high debt levels and losses weigh heavily. Technical indicators show some positive momentum, but the valuation remains unattractive due to financial instability.
To see Spark’s full report on WW stock, click here.
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.Date of analysis: ―