May 6, 2025
WW management reported first quarter 2025 results today.
“We are making progress on our strategic priorities with continued momentum in our Clinical business, while laying the foundation for long-term, sustainable growth,” said Tara Comonte, President and CEO. “As the weight management landscape evolves, we believe our unique combination of science-backed behavioral support, clinical care, and engaged community positions us to deliver superior outcomes.”
We demonstrated continued strong financial discipline in Q1,” said Felicia DellaFortuna, CFO. “While Clinical revenue grew 57% year-over-year, revenue headwinds in our Behavioral business continued. Despite overall revenue declines, we increased Adjusted EBITDAS by $20 million year-over-year, reflecting our team’s focus on operational efficiency and strategic cost management. Looking ahead, we are engaged in substantive discussions with our lenders and noteholders in order to take decisive actions with our capital structure and remain focused on strengthening our financial foundation to position Weight Watchers for future success.”
- Total End of Period Subscribers of 3.4 million, including 135 thousand End of Period Clinical Subscribers
- Revenues of $186.6 million, down 9.7% vs. prior year period, including Clinical Subscription Revenues of $29.5 million, up 57.1% vs. prior year period
- Clinical Subscribers of 135,000 increased 55.2% versus the prior year period.
- Subscription Revenues Per Paid Weeks up 4.8% vs. prior year period
- Gross Margin of 71.2%
- Net Loss of $72.6 million
- Cash and cash equivalents of $236.3 million,
- The company is not providing full year fiscal 2025 guidance at this time.
- WW spent $78 million on marketing in Q1
Conference Call Information
During the call, Tara Comonte, President and CEO, and Felicia DellaFortuna, Chief Financial Officer, will discuss an agreement with the Company’s lenders and noteholders that will significantly reduce debt obligations that is currently expected to result in a voluntary prepackaged filing under Chapter 11 of the U.S. Bankruptcy Code. The Transaction will eliminate $1.15 billion in debt from the Company’s balance sheet.
WeightWatchers will remain fully operational during the reorganization process and there will be no impact to members or the plans they rely on. Regarding the reorganization…
- Positions the company to execute its transformation strategy, focused on enhancing its digital and member experience and expanding its telehealth business which achieved 57% year-over-year revenue growth in Q1 202
- WW Enters comprehensive agreement with lenders and noteholders to significantly reduce its debt obligations and bolster financial flexibility
- Expects reorganization plan to be confirmed in approximately 40 days and to emerge as a publicly traded company
- $465 million in new senior secured debt due 2030 (which may be in the form of term loans or senior secured notes)
WeightWatchers has launched a dedicated web page for members to get more information about the court-supervised restructuring process at www.weightwatchers.com/here-to-stay. A summary of the Transaction can be found on the Company’s corporate website, https://corporate.ww.com, under Events and Presentations.
Additional information regarding the process is available here. Stakeholders with questions can contact the Company’s claims agent, Kroll, by calling (888) 643-6250 (U.S. / Canada) or +1 (646) 930-6250 (International) or emailing WeightWatchersInfo@ra.kroll.com.
Commentary
This reorganization and elimination of a significant amount of debt is an important and necessary step in the company’s survival. Based on the Q1 revenues of $187 million, 2025 full year sales will probably come in around $700 million (since Q1 is usually the strongest quarter of the year). This is compared with 2024’s $786 million. Again, no information provided about the firm’s European and Canadian operations. It would be helpful to know what’s happening in WW’s international markets. Are customers abroad using GLP-1 drugs as much as Americans, and what price are they paying? Is it covered by insurance?
Learn More About The Commercial Weight Loss Market – New Report by Marketdata LLC
Marketdata LLC has just published a new report: “The U.S. Weight Loss Market: Commercial (non-medical) Programs & Products”, March 2025. This is a 220-page analysis of commercial weight loss programs/companies and how they have been affected by and respond to the onslaught of the GLP-1 drugs competition.
The $38 billion U.S. commercial weight loss market is 15% larger than in 2020, but has had to pivot to adjust to huge competition from the popular GLP-1 drugs. The large commercial chains have been hurt the most since 2022. The business has gone virtual, and some competitors have added the GLP-1 drugs to their programs to position themselves for a new future.
However, some commercial markets have held up well. Diet soft drinks have shown surprising strength, and high protein meal replacements have been positioned as an adjunct to the weight loss drugs. The weight loss apps market is growing strongly. The ranks of commercial weight loss centers have been thinned, and franchising is all but dead as a growth model.
Some Report Findings::
- Marketdata estimates that the U.S. commercial (non-medical) weight loss market, for programs, products and services, was worth $38.4 billion in 2024, down slightly from $38.8 billion in 2022. Commercial services represent 53% of the $72.2 billion total market now, down from 82% in 2020, prior to the GLP-1 boom.
- The commercial weight loss programs market segment contracted by 29.2% in 2023, to $3.24 billion, and another 23.7% to $2.47 billion in 2024, due to competition from GLP-1s drugs. This amounts to a 56% decline in just two years.
- Commercial weight loss companies have lost $2 billion in revenues since 2022 due to the competition from GLP-1 drugs. Jeny Craig went bankrupt, Profile Plan closed, and NutriSystem’s private equity parent Wellful is having debt issues.
- The “average” weight loss center had annual receipts of $646,250 in 2022. But, sales have fallen since then, to $484,000 per center in 2024.
- There may be an opportunity for commercial weight loss firms to post some growth in the second half of 2025. The GLP-1s shortage is over, and the compounding pharmacies have to stop making these meds as of May 22. Consumers will then have to pay full price for the brand name meds. Many will opt for less costly (non-medical) diet programs.
- The business has gone virtual. Operating a retail, brick & mortar weight loss center or franchise has become too difficult in this era, with rising real estate and staff costs. Many businesses have pivoted to a virtual delivery model, which can be scaled larger and quicker, and is more profitable.
Purchase This Report:
The report’s description and Table of Contents are found at this website, see home page, Off The Shelf Market Reports, red link for Diet Market – Our Specialty, or contact us at 813-971-8080 and we’ll email them to you. The report contains 62 tables and charts. Price: $995. A 25-page, $99 Overview Summary report is also available.
Included… dollar value & growth rates of all major commercial weight loss market segments (early 1980s to 2024 and 2025 & 2028 forecasts), latest market trends and company developments, status reports for: diet soft drinks, artificial sweeteners, commercial weight loss centers, multi-level marketing diet plans, retail and MLM meal replacements and weight loss supplements, and low-cal frozen entrees. Analysis of the medical weight loss programs market and competition from MDs, hospitals, medical clinic chains, and telehealth.
The report includes a 35-year revenue analysis of the market through past recessions and fad diet cycles, plus weight loss center franchising, and extensive national/state commercial centers’ operating ratios. Rankings & revenues of top commercial chains, brand sales, and a Reference Directory. Competitor profiles for: Weight Watchers, Jenny Craig, NutriSystem, Medifast, Herbalife, Noom, MyFitness Pal, Slim-Fast (Glanbia), Simply Good Foods (Atkins Nutritionals), Slimgenics, Profile by Sanford, BeachBody, Metabolic Research, Visalis Life Sciences, Isagenix, Shaklee, AMWAY (Quixtar), and Nu-Skin.