WW International, Inc. Q4 FY2025 earnings call

• Emerged from Chapter 11 financial reorganization over two quarters ago with a mandate to transform to lead in a GLP-1 world. - Reduced legacy debt by more than 70%, rebuilt leadership team, repositioned and defined go-forward strategy, refreshed brand, reset product and pricing architecture, and started technology modernization roadmap. - Focused on reinventing nearly every aspect of the company, including creating engaging member experience, innovating with new technologies, growing medical offerings and diversifying revenue streams, revisiting brand, and modernizing tools and platforms. - Product offerings include base level behavioral core program, premium behavioral Core Plus, GLP-1 success program, and clinical MedPlus offering. - January campaign showed increase in awareness of MedPlus offering and improved brand modernization perception. - Relaunched mobile experience with new tools and ongoing digital roadmap. - Filled key leadership areas to drive transformation. - Saw momentum in MedPlus offering with accelerated member acquisition, increased first-time members, and reengagement of prior members. - Virtual workshop attendance among Core Plus members in US increased nearly 30% year over year, and MedPlus members reported benefits from GLP-1 success program in minimizing side effects.

In Q4, total revenue was $163 million, down 12% year-over-year. Clinical revenue grew 32% and behavioral revenue declined 17%. End of period clinical subscribers were 130,000 at end of Q4, expected to be ~200,000 at end of Q1 2026 with ~100% year-over-year growth when adjusted for compounded semaglutide last year. End of period behavioral subscribers were 2.6 million at end of Q4 2025, expected to be ~2.45 million at end of Q1 2026, a decline of ~26% year-over-year. Monthly subscription revenue per average subscriber (ARPU) increased 8% year over year to $18.73 in Q4, anchored by the premium of the clinical business where ARPU is over four times higher than behavioral. Core Plus commands a price point nearly two times higher than standard core and represents around 20% of behavioral subscriber base.

• For fiscal year 2026, expect revenue in the range of $620 to $635 million and adjusted EBITDA in the range of $105 to $115 million. - Q1 represents peak marketing investment period with meaningful use of cash, but not indicative of full-year trends. - Expect 2026 marketing expense as percentage of revenue to increase modestly with front-loaded spend in Q1 and reallocation across lines of business. - Expect product development expenses to remain at similar quarterly run rate to second half of 2025. - Expect modest SG&A savings in 2026 driven by exit from corporate headquarters lease and ongoing operational discipline. - Expect 2026 net cash taxes to be between 5 and 10 million. - Expect 2026 capital expenditures to begin to return toward historical levels as investing in product innovation, technology, infrastructure, and growth initiatives.

Q: Alex Furman with Lucid Capital Markets asked about demand for weight loss medications, specifically Wegovy pill and lapping compounded GLP-1s.

A: Tara and John responded on increasing consumer interest, adoption, integration of model, high quality clinical support with behavioral support, and Q1 growth estimates.

Q: Justin Ages with CJS Securities asked about new MedPlus members being new to the brand, demographic changes, and length of contract.

A: Tara responded on brand repositioning, multiple factors driving new interest, demographics continuing to expand, and trends in longer term contracts.

Q: William Reuter with Bank of America asked about pricing strategy and B2B initiative.

A: Felicia responded on pricing strategy including renewing from long-term commitment, deliberate promotional activity, and ARPU expansion; on B2B, spoke to pipeline, initiatives like partnership with UnitedHealth, and diversification benefits.