Third Quarter 2026
Filed Nov 5, 2026Revenue of $153 million; Clinical Subscription Revenue of $38 million, up 48% year-over-year; Positive Net Income of $15.1 million; Adjusted EBITDA of $51.7 million
Clinical revenue, subscriber growth, ARPU and Adjusted EBITDA improved, but total revenue, Behavioral revenue and total end-of-period subscribers declined year-over-year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 Revenue, netGAAP | $152.9M | – | (11.2 %) |
| Q3 2026 Subscription revenue, netGAAP | $152.0M | – | (11.1 %) |
| Q3 2026 Behavioral Subscription Revenueother | $113.9M | – | (21.5 %) |
| Q3 2026 Clinical Subscription Revenueother | $38.04M | – | 47.6 % |
| Q3 2026 Other revenue, netGAAP | $941K | – | (19.0 %) |
| Q3 2026 Gross profitGAAP | $108.7M | – | – |
| Q3 2026 Gross marginGAAP | 71.1 % | – | – |
| Q3 2026 Adjusted gross profitnon-GAAP | $114.0M | – | – |
| Q3 2026 Adjusted gross marginnon-GAAP | 74.6 % | – | – |
| Q3 2026 Marketing expensesGAAP | $33.09M | – | – |
| Q3 2026 Product development expensesGAAP | $5.24M | – | – |
| Q3 2026 Selling, general and administrative expensesGAAP | $33.85M | – | – |
| Q3 2026 Operating incomeGAAP | $36.51M | – | – |
| Q3 2026 Net income (loss)GAAP | $15.11M | – | – |
| Q3 2026 Net income (loss) marginGAAP | 9.9 % | – | – |
| Q3 2026 Basic earnings (net loss) per shareGAAP | $ 1.51 | – | – |
| Q3 2026 Diluted earnings (net loss) per shareGAAP | $ 1.51 | – | – |
| Q3 2026 EBITDAnon-GAAP | $50.42M | – | – |
| Q3 2026 EBITDA Marginnon-GAAP | 33.0 % | – | – |
| Q3 2026 Adjusted EBITDAnon-GAAP | $51.66M | – | 21% |
| Q3 2026 Adjusted EBITDA Marginnon-GAAP | 33.8 % | – | – |
| Q3 2026 End of Period Subscribersother | 2,296 | – | (23.1 %) |
| Q3 2026 End of Period Behavioral Subscribersother | 2,122 | – | (25.9 %) |
| Q3 2026 End of Period Clinical Subscribersother | 174 | – | 40.4 % |
| Q3 2026 Monthly Subscription Revenue Per Average Subscriberother | $ 21.17 | – | 14.3 % |
| Nine Months Ended September 30, 2026 Revenue, netGAAP | $483.5M | – | (11.7 %) |
| Nine Months Ended September 30, 2026 Clinical Subscription Revenueother | $116.8M | – | 36.1 % |
| Nine Months Ended September 30, 2026 Net (loss) incomeGAAP | −$22.82M | – | – |
| Nine Months Ended September 30, 2026 Adjusted EBITDAnon-GAAP | $89.59M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Behavioral Subscription RevenueEnd of Period Behavioral Subscribers were 2,122, compared with 2,862 in the prior-year period. | $113.9M | – | (21.5 %) |
| Clinical Subscription RevenueClinical End of Period Subscribers were 174, compared with 124 in the prior-year period. | $38.04M | – | 47.6 % |
| Other RevenueOther revenue consists of revenue from licensing, franchise fees with respect to commitment plans and royalties, publishing and other revenue. | $ 941 | – | (19.0 %) |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
full year fiscal 2026 outlook
- Revenue$625 million to $630 million
- NoteAdjusted EBITDA guidance of $110 million to $115 million
What drove it
- Clinical Subscription Revenue represented 25% of total Revenue, up from 15% in Q3 2025.
- Monthly Subscription Revenue Per Average Subscriber was $ 21.17, up 14% year-over-year, reflecting the growing share of the Clinical business and continued growth in Core+ Subscribers.
- Core+ End of Period Subscribers reached 546 thousand, up 16% year-over-year.
- The Company reported four quarters of quarter-over-quarter growth in Core+ subscribers.
- Adjusted EBITDA reflected continued expense discipline and lower marketing relative to Q3 2025, which included investment to support a product launch.
Concerns
- Q3 Revenue was down 11% year-over-year.
- Behavioral Subscription Revenue declined (21.5 %) year-over-year to $ 113,923.
- End of Period Subscribers declined (23.1 %) year-over-year to 2,296.
- End of Period Behavioral Subscribers declined (25.9 %) year-over-year to 2,122.
- Q3 GAAP gross margin was 71.1 %, compared with 72.1 % in Q3 2025.
- The Company states that consolidated financial statements after June 24, 2025 are not comparable with consolidated financial statements as of or prior to that date because of fresh start accounting.
What to watch
- The balance between Clinical Subscription Revenue growth and Behavioral Subscription Revenue decline.
- Clinical End of Period Subscriber growth and the fourth consecutive quarter of sequential growth in Core+ subscribers.
- Whether Monthly Subscription Revenue Per Average Subscriber continues to reflect a growing Clinical mix.
- Delivery against full year fiscal 2026 Revenue guidance of $625 million to $630 million and Adjusted EBITDA guidance of $110 million to $115 million.
- Cash, debt reduction and capitalized software and website development expenditures.
Balance sheet and cash flow
- Cash and cash equivalents were $ 126,442 at September 30, 2026, compared with $ 160,279 at December 31, 2025.
- Long-term debt, net was $ 423,970 at September 30, 2026, compared with $ 465,466 at December 31, 2025.
- Cash provided by operating activities was $ 23,039 for the nine months ended September 30, 2026.
- Cash used for investing activities was $ (18,899 ) for the nine months ended September 30, 2026.
- Capitalized software and website development expenditures were $ (18,899 ) for the nine months ended September 30, 2026.
- Payments on long-term debt were $ (36,808 ) for the nine months ended September 30, 2026.
- Cash and cash equivalents and restricted cash were $ 132,238 at September 30, 2026, compared with $ 166,577 at the beginning of the period.
Analysis
WW reported Q3 2026 revenue of $ 152,901, down (11.2 %) from $ 172,091 in the prior-year quarter. The decline was concentrated in Behavioral Subscription Revenue, which fell (21.5 %) to $ 113,923. Clinical Subscription Revenue increased 47.6 % to $ 38,037 and represented 25% of total Revenue, up from 15% in Q3 2025. Subscription revenue, net was $ 151,960, while Other revenue, net was $ 941.
Subscriber data shows the same mix transition. Total End of Period Subscribers were 2,296, down (23.1 %) from 2,986, driven by a (25.9 %) decline in End of Period Behavioral Subscribers to 2,122. End of Period Clinical Subscribers increased 40.4 % to 174. Core+ End of Period Subscribers reached 546 thousand, up 16% year-over-year, and the Company cited four quarters of quarter-over-quarter Core+ subscriber growth. Monthly Subscription Revenue Per Average Subscriber rose 14.3 % to $ 21.17.
Profitability improved materially despite lower revenue. GAAP operating income was $ 36,514 versus $ 8,035, and net income was $ 15,108 versus a net loss of $ (57,516 ). GAAP gross margin was 71.1 %, below 72.1 % in the prior-year quarter, while Adjusted EBITDA rose to $ 51,660 from $ 42,776 and Adjusted EBITDA Margin increased to 33.8 % from 24.9 %. Marketing expenses declined to $ 33,094 from $ 48,404, and the Company attributed Adjusted EBITDA growth to expense discipline and lower marketing relative to Q3 2025.
The balance sheet showed cash and cash equivalents of $ 126,442 at September 30, 2026, while long-term debt, net was $ 423,970. For the nine months ended September 30, 2026, cash provided by operating activities was $ 23,039, cash used for investing activities was $ (18,899 ), and payments on long-term debt were $ (36,808 ). The Company reported that cash and cash equivalents were up from $101.5 million at the end of Q2 2026.
For full year fiscal 2026, the Company narrowed Revenue guidance to $625 million to $630 million from $620 million to $635 million and narrowed Adjusted EBITDA guidance to $110 million to $115 million from $105 million to $115 million. The key reported tension is the continued growth of Clinical and Core+ offerings against declining total revenue, Behavioral revenue and overall subscribers. The filing also notes that fresh start accounting following emergence from the financial reorganization affects comparability of consolidated financial statements after June 24, 2025 with those as of or prior to that date.
Management, verbatim
Since joining Weight Watchers on October 1, I made it my priority to listen to our members, coaches, clinicians, registered dietitians, and colleagues. Through these conversations, two core truths emerged: weight loss is personal, and the support people need changes along the way.
Stephen Bye, President and Chief Executive Officer
That top-line progress, combined with our continued disciplined investment, directly translated to $51.7 million of Adjusted EBITDA, representing a 33.8% Adjusted EBITDA Margin.
Felicia DellaFortuna, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook section for formal actual-versus-prior-guidance comparisons
- GAAP EPS guidance
- Non-GAAP EPS
- Free cash flow
- Share repurchases
- Cash dividends
- Gross margin guidance
- Operating expense guidance
- Tax-rate guidance
- GAAP net income guidance
- A reconciliation of forward-looking full year Adjusted EBITDA outlook to net income
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.