Q2 2026 WW International Inc Earnings Call Transcript
Key Points
- Core+ subscribers grew 13.9% year-over-year, marking the third consecutive quarter of sequential growth, a trend seen only once in the past 15 years.
- Clinical subscribers increased 55.7% year-over-year to 197,000, with Clinical subscription revenue up 30.4% to $39.9 million.
- Adjusted gross margin remained near record highs at 73.6%, despite a shift toward the higher-cost Clinical business.
- Generated $24.3 million in operating cash flow and reduced term loan debt by $36.8 million, lowering annual interest expense by approximately $4 million.
- Reaffirmed full-year 2026 guidance for revenue of $620-$635 million and adjusted EBITDA of $105-$115 million, reflecting confidence in the business outlook.
- Total end-of-period subscribers declined 24.6% year-over-year to 2.3 million, driven by continued weakness in the Core tier.
- Revenue fell 14.2% year-over-year to $162.3 million, with Behavioral subscription revenue down 22.7% to $121.5 million.
- Marketing expense as a percentage of revenue increased to 29.5%, up from the prior-year quarter, pressuring profitability.
- Clinical subscriber numbers held steady sequentially, but management expects moderate declines in the remaining quarters due to lower marketing spend.
- Adjusted EBITDA declined significantly from $65.3 million in Q2 2025 to $39.8 million, reflecting lower revenue and higher marketing investment.
Welcome to the Weight Watchers second-quarter 2026 earnings conference call.
(Operator Instructions) Please note: This event is being recorded.
I would now like to turn the conference over to Anna Kate Heller from Investor Relations. Please go ahead.
Thank you for joining us today for the Weight Watchers second-quarter 2026 earnings conference call.
We also released a Shareholder Letter and press release with our second-quarter 2026 results, which are available on the company's corporate website, located at corporate.ww.com.
The purpose of this call is to provide investors with some further details regarding the company's financial results, as well as to provide a general update on the company's progress.
Reconciliations of non-GAAP measures disclosed on this conference call to the most directly comparable GAAP financial measures are also available as part of the Shareholder Letter and press release.
Before we begin, let me remind everyone that this call
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