WW International Q4 revenue falls as behavioral business declines

Overview

• Global weight management firm's Q4 revenue declined 12% yr/yr amid behavioral business headwinds

• Clinical subscription revenue for Q4 grew 32% yr/yr, driven by GLP-1 medication demand

• Company projects 2026 revenue of $620 mln to $635 mln and adjusted EBITDA of $105 mln to $115 mln

Outlook

• WW International sees 2026 revenue between $620 mln and $635 mln

• Company expects 2026 adjusted EBITDA of $105 mln to $115 mln

• WW International estimates Q1 2026 end-of-period subscribers at about 2.65 mln

Result Drivers

• CLINICAL GROWTH - Strong growth in Clinical subscription revenue, up 32% yr/yr, driven by new and returning members and upgrades from Behavioral business

• BEHAVIORAL HEADWINDS - Revenue decline attributed to ongoing secular pressures and commercial impact from financial reorganization in Behavioral business

• HIGHER MARKETING SPEND - Adjusted EBITDA margin declined yr/yr due to $10 mln in additional marketing spend from new fiscal calendar and strategic brand investments ahead of peak season

Company press release: ID:nGNX112xt7

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy"

• Wall Street's median 12-month price target for WW International Inc is $47.25, about 124.1% above its March 13 closing price of $21.08

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 15 three months ago

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