WeightWatchers’ second quarter results were met with a negative market reaction, as the company faced a year-over-year revenue decline and ongoing member attrition. Management attributed these trends to challenges in acquiring new behavioral members and a significant shift in the clinical business after regulatory changes around compounded weight loss medications. CEO Tara Comonte described the quarter as a “pivotal moment,” emphasizing the impact of transitioning members away from compounded semaglutide and lingering effects from bankruptcy proceedings. Chief Financial Officer Felicia DellaFortuna noted that, despite growth in clinical subscriber revenue, overall member acquisition remained pressured throughout the quarter.
Is now the time to buy WW? Find out in our full research report (it’s free).
WeightWatchers (WW) Q2 CY2025 Highlights:
- Revenue: $189.2 million vs analyst estimates of $178 million (6.4% year-on-year decline, 6.2% beat)
- Adjusted EBITDA: $53.61 million vs analyst estimates of $29.81 million (28.3% margin, 79.8% beat)
- EBITDA guidance for the full year is $145 million at the midpoint, above analyst estimates of $132 million
- Operating Margin: 23.3%, up from 18.8% in the same quarter last year
- Members: 3.2 million, down 600,000 year on year
- Market Capitalization: $317 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From WeightWatchers’s Q2 Earnings Call
- Nathaniel Jay Feather (Morgan Stanley) asked how the discontinuation of compounded GLP-1 medications is affecting clinical subscriber trends. CEO Tara Comonte and COO Jon Volkmann explained that most growth had been tied to compounded semaglutide, and transitioning members to approved alternatives will result in near-term subscriber declines.
- Feather (Morgan Stanley) further inquired about competitors’ aggressive marketing of compounded medications. Volkmann confirmed that rivals remain highly active and this is prolonging headwinds for WeightWatchers’ clinical segment.
- Feather (Morgan Stanley) questioned limitations in B2B adoption and the path to scaling that channel. Comonte cited the aftermath of bankruptcy headlines but said momentum is returning and that longer sales cycles are expected compared to the direct-to-consumer model.
- Alex Joseph Fuhrman (Lucid Capital Markets) asked about evolving WeightWatchers into a broader women’s health company. Comonte described plans for comprehensive menopause and women’s health programs, leveraging the brand’s infrastructure for these new verticals.
- Fuhrman (Lucid Capital Markets) requested further detail on women’s health plans. Comonte said offerings will blend behavioral, nutritional, and clinical support tailored to different life stages, aiming for a holistic approach to long-term member needs.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) member retention and subscriber trends as the transition from compounded to FDA-approved GLP-1 medications continues, (2) execution of technology and personalization upgrades to the member experience, and (3) early traction of new women’s health and menopause programs. The pace of B2B channel recovery and regulatory developments in obesity care will also be key signposts.
WeightWatchers currently trades at $31.75, down from $38.11 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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