WW International, Inc. (NASDAQ:WW), formerly known as Weight Watchers, saw its stock plummet 43% after announcing plans to file for Chapter 11 bankruptcy protection alongside its first quarter earnings release.
The weight loss company reported Q1 adjusted earnings per share of -$0.47, missing analyst estimates of -$0.29. Revenue came in at $186.6 million, surpassing expectations of $180.06 million but still declining 9.7% YoY.
WW International said it is engaged in "substantive discussions" with lenders and noteholders on a plan to significantly reduce its debt obligations through a prepackaged Chapter 11 filing, which it expects to occur "imminently."
"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 CEO Tara Comonte.
The company ended the quarter with 3.4 million total subscribers, down 14.2% YoY. However, its Clinical subscriber base grew 55.2% to 135,000.
Clinical subscription revenues jumped 57.1% YoY to $29.5 million, partially offsetting declines in the core behavioral weight loss business.
Despite lower overall revenue, WW International improved its adjusted EBITDAS to $26.9 million from $7.2 million a year ago through cost-cutting measures.
The company is not providing full-year 2025 guidance due to the pending bankruptcy restructuring. WW International had $236.3 million in cash at quarter-end, including $171.3 million drawn from its revolving credit facility.
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