WW International, Inc. (NASDAQ:WW) reported Thursday first-quarter fiscal 2026 revenue of $168.3 million, down 9.8% year over year from $186.6 million, but above the $158.6 million analyst estimate.
• WW International shares are retreating from recent levels. What’s pressuring WW stock?
The company posted a GAAP net loss of $52 million, or $5.20 per share, compared with a net loss of $72.6 million, or 91 cents per share, a year earlier. EPS missed the analyst estimate of $(2.51).
Shares traded lower following the results. Adjusted EBITDA was a loss of $1.8 million versus the positive adjusted EBITDA of $26.9 million a year earlier.
Clinical Growth Offsets Behavioral Weakness
Clinical subscription revenue rose 32% year-over-year to $38.8 million, while clinical subscribers increased 46% to 197,000 despite lapping prior-year compounded semaglutide demand.
Total subscribers fell 22.6% to 2.66 million, with behavioral subscribers down 25.4% to 2.46 million. Behavioral subscription revenue declined 17.5% to $128.5 million amid weakness in the Core membership tier.
Monthly subscription revenue per average subscriber increased 12.9% to $20.59, driven by growth in higher-priced Med+ and Core+ tiers. Core+ subscribers rose 6% to 537,000.
Margins and Profitability
Gross margin was 70.5%, while adjusted gross margin reached 73.6%, remaining near record highs despite the accelerating shift toward Clinical. Operating loss widened to $30.4 million from $20.2 million a year earlier.
Marketing expenses rose to $92.9 million, or 55.2% of revenue, from $78.8 million, or 42.2% of revenue, in the prior-year period.
Adjusted EBITDA margin fell to negative 1.1% from positive 14.4%.
"We remain confident in our strategy to build the industry-leading weight health platform. Our focus is on executing high-impact initiatives that drive Clinical growth and stabilize our Behavioral business," said Jon Volkmann, chief operations officer and member of the company's interim office of the chief executive.
Balance Sheet and Debt Reduction
Cash and cash equivalents totaled $120.9 million as of March 31, 2026, down from $160.3 million at Dec. 31, 2025.
Operating cash flow was negative $33.5 million, while long-term debt stood at $438.6 million. Interest expense declined to $11.5 million from $27.6 million a year earlier.
WW said second-quarter debt prepayment actions are expected to reduce term loan principal by $42 million and lower annualized interest expense by about $4 million.
2026 Outlook
WW reaffirmed fiscal 2026 revenue guidance of $620 million to $635 million, compared with the $633.4 million analyst estimate, and reaffirmed adjusted EBITDA guidance of $105 million to $115 million.
The company said comparisons are affected by fresh-start accounting following its emergence from Chapter 11 restructuring in June 2025, and cited inflation, tariffs, trade tensions and rising interest rates as ongoing risks.
WW Price Action: WW International shares were trading 17.71% lower at $9.71 at the time of publication on Thursday.
Photo Courtesy: Jonathan Weiss On Shutterstock.com
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