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WW International, Inc.
(NASDAQ:WW)
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Rating:51Neutral
Price Target:
$15.50
▲(11.91% Upside)
Action:Reiterated
Date:08/06/26
WW scores in the low-50s primarily due to weak recent profitability and deteriorated cash generation, which outweigh balance-sheet improvement. The earnings call adds moderate support via reaffirmed guidance, improved mix/ARPU, and expectations for positive full-year operating cash flow, but continued revenue and behavioral subscriber declines remain key risks. Technically, indicators are mixed with the stock still below longer-term trend levels.
Positive Factors
High and stable gross margins
Sustained high adjusted gross margins (above 72% guidance) show durable unit economics across digital and clinical offerings. This margin resilience supports profitability improvements even if revenue is pressured, enabling reinvestment in product and clinical expansion while insulating operating profit from fluctuating acquisition costs.
Negative Factors
Ongoing revenue decline
A persistent top‑line contraction reduces operating scale and undermines fixed‑cost absorption, pressuring long‑run margins and cash conversion. Continued revenue shrinkage can force tradeoffs between customer acquisition, marketing, and product investment, slowing the structural turnaround and making profit recovery harder.
Read all positive and negative factors
Positive Factors
Negative Factors
High and stable gross margins
Sustained high adjusted gross margins (above 72% guidance) show durable unit economics across digital and clinical offerings. This margin resilience supports profitability improvements even if revenue is pressured, enabling reinvestment in product and clinical expansion while insulating operating profit from fluctuating acquisition costs.
Read all positive factors
WW International, Inc. (WW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$143.58M
Dividend YieldN/A
Average Volume (3M)141.77K
Price to Earnings (P/E)4.2
Beta (1Y)1.70
Revenue Growth-9.61%
EPS GrowthN/A
CountryUS
Employees3,500
SectorGeneral
Sector StrengthN/A
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)-10.00
Shares Outstanding9,998,760
10 Day Avg. Volume104,302
30 Day Avg. Volume141,773
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.92
Price to Sales (P/S)0.41
P/FCF Ratio-6.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-4.73
Revenue Forecast (FY)$632.19M
WW International, Inc. Business Overview & Revenue Model
Company Description
WW International, Inc., founded in 1961 and based in New York, New York, is a leading global provider of services and goods aimed at weight management and overall wellness. The company, which operated as Weight Watchers International, Inc. until i...
How the Company Makes Money
WW primarily makes money through membership-based subscriptions and related services. Its core revenue stream has historically been subscription fees paid by members for access to WW’s digital products (such as its mobile app, tracking tools, and ...
WW International, Inc. Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a mix of encouraging operational and financial improvements alongside notable top-line and core behavioral subscriber declines. Positives include strong growth in higher-value Core+ and clinical subscribers, ARPU improvement, high adjusted gross margins, positive adjusted EBITDA and quarter cash generation, and significant debt reduction with lower future interest expense. The principal challenges are a year-over-year revenue decline (~14%), a sharp decline in core behavioral subscribers and behavioral revenue (~22–25%), elevated marketing as a percent of revenue (seasonally variable), and non-cash charges inflating GAAP SG&A. Management reiterated full-year guidance and expects positive operating cash flow, indicating confidence in the multi-year transformation despite near-term headwinds.Positive Updates
Core+ Subscriber Growth
Core+ subscribers reached 541,000, up 13.9% year-over-year and marking the third consecutive quarter of sequential growth in the higher-value behavioral tier.
Negative Updates
Overall Revenue Decline
Total revenue for Q2 was $162.3 million, down from $189.2 million a year ago (approximately a 14.2% decline year-over-year).
Read all updates
Q2-2026 Updates
Positive
Negative
Core+ Subscriber Growth
Core+ subscribers reached 541,000, up 13.9% year-over-year and marking the third consecutive quarter of sequential growth in the higher-value behavioral tier.
Read all positive updates
Company Guidance
WeightWatchers reaffirmed full‑year 2026 guidance of $620–$635 million in revenue and $105–$115 million of adjusted EBITDA, and said clinical subscription revenue should represent 25%–30% of 2026 total revenue (up from 15.9% in 2025) even with moderate declines in clinical subscribers expected in remaining quarters; management expects a modest adjusted gross margin decline versus 2025 but to remain above 72%, marketing expense as a percentage of revenue to increase modestly versus 2025 with Q3 as the lowest marketing quarter and spend ramping into Q4 (H2 below H1), product development and capitalized software & development to stay near the Q2 run rate (Q2 PD was $6.4M; capex ~$6.1M), positive operating cash flow for the full year, full‑year interest expense of roughly $45–$50 million, and cash taxes of $5–$10 million.WW International, Inc. Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
41
Neutral
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 676.72M | 710.64M | 785.92M | 889.55M | 1.04B | 1.21B |
| Gross Profit | 459.06M | 510.50M | 533.10M | 529.30M | 621.38M | 726.67M |
| EBITDA | 102.39M | 1.22B | -198.44M | 74.73M | -241.86M | 213.44M |
| Net Income | -100.02M | 1.06B | -345.70M | -112.25M | -256.87M | 67.13M |
Balance Sheet | ||||||
| Total Assets | 840.44M | 946.76M | 550.28M | 982.03M | 1.03B | 1.43B |
| Cash, Cash Equivalents and Short-Term Investments | 101.50M | 160.28M | 53.02M | 109.37M | 178.33M | 153.79M |
| Total Debt | 426.31M | 468.62M | 1.48B | 1.49B | 1.51B | 1.52B |
| Total Liabilities | 561.79M | 628.69M | 1.66B | 1.74B | 1.71B | 1.89B |
| Stockholders Equity | 278.65M | 318.07M | -1.11B | -761.09M | -685.78M | -456.40M |
Cash Flow | ||||||
| Free Cash Flow | -55.23M | -46.38M | -33.25M | -29.61M | 38.39M | 119.63M |
| Operating Cash Flow | -44.09M | -28.90M | -16.84M | 6.69M | 76.65M | 157.28M |
| Investing Cash Flow | -25.10M | -19.50M | -16.41M | -74.70M | -42.64M | -52.75M |
| Financing Cash Flow | -36.81M | 153.90M | -17.34M | -2.75M | -4.72M | -111.54M |
WW International, Inc. Risk Analysis
WW International, Inc. disclosed 40 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
UnderperformOutperform
Sector (55)
WW
WW International, Inc.
18.12
-15.42
-45.97%
MED
Medifast
12.62
-0.21
-1.64%
MRM
MEDIROM Healthcare Technologies
0.96
-1.64
-63.08%
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.