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WW International, Inc. (WW)
NASDAQ:WW
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WW International, Inc.
(NASDAQ:WW)
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Rating:47Neutral
Price Target:
$20.00
▼(-1.23% Downside)
The score is held down primarily by below-average financial performance: multi-year revenue contraction and negative TTM operating/free cash flow despite a sharp (potentially non-recurring) profitability rebound. Earnings-call updates are moderately supportive due to accelerating clinical subscriber growth and improved guidance, while technicals are neutral and valuation appears optically cheap but less reliable given earnings quality concerns.
Positive Factors
Clinical Subscriber Growth
Rapid clinical subscriber growth reflects successful expansion into medically supervised weight management, which typically yields higher retention and revenue per member. This shifts WW toward a higher-margin, defensible service line that can sustainably diversify recurring revenue beyond behavioral subscriptions.
Digital Transformation & Brand Refresh
A full replatform and brand refresh should improve member experience, retention, and personalization at scale. Over months, a modernized app/website can lower acquisition costs, improve lifetime value, and provide a platform for new services (clinic, programs), supporting durable subscription revenue.
Balance Sheet Improvement
Transition to positive equity and materially lower debt from prior peaks strengthens financial flexibility. This durable improvement reduces solvency risk, enables continued investment in digital and clinical initiatives, and lessens the need for dilutive or highly restrictive financing in the medium term.
Negative Factors
Behavioral Subscriber Decline
The core behavioral cohort is the historical backbone of recurring revenue; a sustained 20% decline indicates weakening product-market fit or competitive pressure. Persistent erosion here undermines scale economics, makes revenue harder to stabilize, and increases reliance on newer, unproven revenue streams.
Weak Cash Generation
Negative operating and free cash flow despite a profit rebound signals earnings quality and working-capital stress. Poor cash generation constrains reinvestment in product and clinic expansion, may necessitate external funding, and increases execution risk for multi-quarter strategic initiatives.
Volatile Earnings Quality
Erratic margins driven by non-recurring items reduce visibility into sustainable profitability. This volatility hampers reliable forecasting, complicates allocation of capital toward long-term growth, and raises the chance that margins will revert, impairing the firm's ability to fund strategic priorities.
WW International, Inc. (WW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$202.24M
Dividend YieldN/A
Average Volume (3M)308.11K
Price to Earnings (P/E)0.2
Beta (1Y)2.32
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. Volume222,610
30 Day Avg. Volume308,106
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)-8.51
Price to Sales (P/S)12.07
P/FCF Ratio-285.31
Enterprise Value/Market Cap2.48
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit0.97
Enterprise Value/Ebitda0.40
Forecast
1Y Price Target
$34.50Price Target Upside70.37% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.84
Revenue Forecast (FY)$636.64M
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 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
Headline TTM profitability improved sharply, but revenue remains in a multi-year decline and cash generation is weak (TTM operating and free cash flow both negative), suggesting lower earnings quality. The balance sheet shows improvement versus prior negative equity periods, yet the recent history of high leverage and erratic ROE keeps overall financial strength below average.Income Statement
TTM (Trailing-Twelve-Months) results show a sharp swing to very strong profitability (net margin ~151% and positive EBIT), but this is inconsistent with the prior annual losses (2024 and 2022 had deeply negative margins) and suggests one-time/non-operating benefits are driving net income. Revenue has been shrinking for multiple years, with TTM revenue down ~3% and a clear multi-year downtrend from 2021–2024. Gross margin is healthy in TTM (~72%), but the top-line contraction and volatile earnings quality keep the income statement score below average.42
Neutral
Balance Sheet
Leverage improved meaningfully in TTM (debt ~469M and positive equity ~323M), which is a notable positive versus the prior years where equity was negative (2021–2024). That said, the balance sheet still carries risk given the recent history of negative equity and high debt levels in earlier periods (debt ~1.5B in 2021–2024), implying a turnaround that may not yet be fully proven. Return on equity is also erratic (TTM is negative), reflecting unstable underlying profitability and capital structure transition.35
Negative
Cash Flow
Cash generation is weak: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both negative (about -21M and -28M), following also-negative cash flow in 2024. While 2021–2022 showed the business can generate strong positive free cash flow, the recent shift to cash burn raises liquidity and sustainability concerns. The key issue is that despite the TTM profit rebound, cash flow has not followed, pointing to lower earnings quality in the current period.24
Negative
| 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.