WW International, Inc.

Good morning and welcome to Weight Watchers International's third quarter 2025 results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touch-tone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to David Halderman, Director of Investor Relations. Please go ahead.

Thank you for joining us today for the Weight Watchers third quarter earnings conference call. Earlier this morning, we released a shareholder letter and press release with our third quarter 2025 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 will contain forward-looking statements. Investors should be aware that any forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those discussed here today. These risk factors are explained in detail in the company's latest annual report on Form 10-K, quarterly report on Form 10-Q, the earnings release, the shareholder letter, and as updated by the company's other filings with the Securities and Exchange Commission. Please refer to these filings for a more detailed discussion of forward-looking statements and the risks and uncertainties of such statements. All forward-looking statements are made as of today and accept as required by law. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Joining today's call are Tara Comant, President and CEO, and Felicia De La Fortuna, CFO. John Volkman, Chief Operations Officer, will also join for the Q&A.

Thanks, David. As we close the third quarter of 2025, Weight Watchers is laying the foundation for renewed growth and leadership in the rapidly evolving weight management sector. I encourage everyone to read our shareholder letter, which we distributed earlier this morning and is posted on our investor relations site. It details our key strategic priorities, competitive differentiators, and what you can expect to see from us over the near and longer term as we build on work already underway to drive growth and long-term value. But first, let me start with some context. In recent years, we've witnessed one of the most profound shifts in the history of health and wellness. The emergence of GLP-1 medications for weight loss has revolutionized the conversation around obesity. bringing hope and in many cases results to millions who have long struggled to manage their weight. To many, the story was simple. Miracle drugs had arrived and traditional approaches like Weight Watchers' proven, high-touch, science-based program could no longer compete in a changing world. However, we recognized early that this was not the end of an era, but the beginning of a new one. The future of weight management will be built on an integrated approach that pairs clinical care and medication access with structured nutrition, movement, and accountability. That's why we acquired Weekend Health, a telehealth business now rebranded to Weight Watchers Clinic, that allowed us to integrate medical expertise and prescription access into our program, broadening our proven science-backed model to include clinical care. We're now evolving and tailoring our behavioral offerings to provide the important support needed by members using these life-changing medications, helping them adhere to treatment, manage side effects, and achieve lasting results over time. This evolution is not a rejection of our past, but an extension of our legacy as the world's leading evidence-based weight management partner. For 62 years, we've led with science. And as GLP-1s redefine what's possible, we're leading with the science again. I want to be clear on this. No company has a deeper commitment to the science of weight loss, nor a longer history of helping people manage their weight than ours. Our industry-leading behavioral program serves as an essential foundation for the differentiated weight loss outcomes and significant non-scale results achieved through Weight Watchers Clinic. As you can see in our shareholder letter, the data proves the efficacy of this model. Studies found that Weight Watchers clinic members who were prescribed anti-obesity medications, including GLP-1s, achieve an average weight loss of 19% to 23% over three years, significantly outperforming our competitors at 12 months. And what's more, 98% of Weight Watchers clinic members prescribed a weight management medication reached more than 10% weight loss after 12 months. and nearly half of them reaching 20% weight loss. Beyond the scale, GLP-1 users who also engaged with the Weight Watchers program experienced 197% increase in self-esteem, a 78% increase in intimacy, 62% better physical function, a 53% boost in quality of life, and 34% reduction in symptoms of depression. The data is clear. In a GLP-1 world, behavioral programs, and community support in tandem with medical solutions are force multipliers for effective, sustainable weight loss and superior health outcomes. What skeptics once saw as an existential threat to our company has instead become an extraordinary opportunity for us to deliver lasting results for our members and capture a greater share of the growing market we serve. 137 million Americans Over half of US adults are eligible for GLP-1 medications. 12% of adults in the US are now taking a GLP-1 medication, with demand continuing to rise. $173 billion in annual medical costs are associated with obesity in the United States. And $1.7 trillion in chronic disease costs are linked to overweight and obesity. This isn't just one of the largest health and economic opportunities of our time. It's a chance to help tens of millions around the world live happier, healthier lives. And it's a moment that Weight Watchers is uniquely positioned to lead. This is particularly true after last quarter's emergence from our financial reorganization. This proactive process aimed at strengthening our balance sheet and freeing up capital to invest in growth also provided the opportunity for a philosophical and strategic rebirth. opening the door for renewed and accelerated innovation. Looking forward, we're focused on four key priorities to drive our growth. First, we will deliver an engaging, unified, end-to-end member experience. Weight Watchers has long been the most trusted weight loss platform, but as the world changes, our digital ecosystem and experience must evolve to match both the scale of our ambition and the expectations of today's consumer. Under the leadership of Elen Kaus, who is our new Chief Technology Officer, joining us from FIS, Snap, and Amazon, we've begun modernizing the two most critical digital touchpoints for our members, our app and our website. The Weight Watchers app has been completely replatformed to remove legacy barriers between our clinical and behavioral offerings, ensuring that members can move seamlessly across the full spectrum of our programs. while also discovering new tools and solutions that can help them on their journey. Over time, the app will become a personalized companion that leverages AI and behavioral insights to deliver individualized recommendations and curated programs. This will be fueled in part by the vast and constantly growing data set we've collected over more than six decades. By modernizing our systems, we can maximize the potential of this information to offer new personalized solutions that meet members where they are, whether that's on or off medication, managing menopause, diabetes, or postpartum, or in other life stages that deeply affect weight health. The Weight Watchers website is also being rebuilt on a mobile-first infrastructure designed to guide prospective members to the right starting point for their journey. It will be informative and easy to navigate, serving as both an educational resource and a more effective marketing and CRM engine. This new website will enhance our brand, improve conversion and create a clearer, more connected path from interest to acquisition. Together, these upgrades form the foundation of a full digital transformation. It will create a faster, more intuitive, data-enriched and integrated experience. while also improving member outcomes and deepening engagement. The first iterations of our new app and website are expected for peak season, early in the new year, with ongoing releases throughout 2026. Last but certainly not least, we're reinvigorating the beating heart of Weight Watchers, our community experiences. Under the leadership of Julie Rice, our new Chief Experience Officer who co-founded SoulCycle, we're revitalizing the community offerings that remains central to Weight Watchers. We're expanding our team of highly skilled coaches and introducing new virtual communities around shared interests, such as GLP-1s, menopause, cooking, and more. We'll also be upgrading the actual meeting platform that we use for our workshops to provide a more personal, immersive experience for our members. And in addition, in-person workshops will also be refreshed. with renewed focus on connection, consistency, and brand experience to be strategically aligned with member demand and needs. Together and over time, all these initiatives will deliver a unified modern Weight Watchers experience. They'll remove friction between programs, connect digital and human support, produce better outcomes for members, and generate expanded opportunities for profitable growth for our business. Second, We're growing our emerging medical business and investing in new diversified revenue streams. The widespread adoption of GLP-1s for weight loss has transformed the weight management landscape and created substantial opportunity for Weight Watchers. Our immediate priority is to scale what's working. That includes Weight Watchers Clinic, which offers medical access and clinical care. It includes our GLP-1 companion program, which provides a behavioral framework to support GLP-1 weight loss, regardless of whether you get your prescription from Weight Watchers Clinic or your own care provider. And it includes our cash-paid or reimbursable registered dietitian network, which connects members with experts who can help them make curated nutritional choices based on their personal needs. Moving forward, we plan to invest in, expand, and elevate these programs for existing and new prospective members. As innovation in the weight health market continues to advance rapidly, we're positioning ourselves to benefit from strong tailwinds that will boost our telehealth business. New oral medications that will expand treatment options are expected in early 2026. Price points are likely to come down for medication over time, and long-term trends point towards broader insurance coverage for medical weight management. Each of these factors will ultimately contribute to expanded medication access and provide significant potential for growth. We're encouraged by the strong member interest in GLP-1 medication options through direct cash pay channels, including our integrations with Novocare and Lilly Direct. Our ongoing collaboration with Novo Nordisk is particularly meaningful as we work together to expand access to injectable Wegovy and support the upcoming launch of the Wegovy pill. while exploring new and innovative ways to bring additional convenience and value to our members. As we continue to expand our medical solutions and capabilities, I will reiterate that patient safety, patient outcomes, and regulatory compliance continue to guide our clinical approach. As we expand our GLP-1 medical weight loss program, we are also extending our reach into adjacent areas of weight health. This started with the launch of Weight Watchers for Menopause, a new offering launched at the end of the third quarter that offers evidence-based support and medication access to the 1.3 million women in the United States who reach menopause each year, many of whom are managing weight, hormonal, and metabolic changes simultaneously. The phased rollout throughout October has been well received, driving encouraging engagement among existing members and strengthening brand awareness around our evolving position in weight health. We also expect our long-term growth to extend beyond the United States, building on more than 50 years of presence in key international markets. Under the leadership of Alejandro Bethlen, Executive Vice President of International, who joined us in September, we will accelerate efforts to strengthen our position abroad, advancing new clinical capabilities while also recommitting to international growth more broadly across our business. Our partnership with UK-based telehealth provider CheckUp that we launched in May is exceeding expectations, and we will evaluate additional opportunities to extend our integrated model to other priority markets. We're also expanding our relationships with employers, payers, and health systems, seeking cost-effective, outcome-driven solutions. One recent example is our Weight Watchers RX Flex Fund. It launched in October. and offers an innovative, flexible approach for organizations looking to support employee access to GLP-1s while managing overall costs, underscoring the value of our integrated medical and behavioral care model. Looking ahead, we see meaningful opportunities to thoughtfully extend the Weight Watchers ecosystem into areas that complement our expertise in weight health. Through select partnerships, integrations, and service innovations, our focus remains clear. improving member outcomes, expanding solutions, and building a more diversified foundation for long-term growth and shareholder value. Third, modernizing the Weight Watchers brand and reclaiming our market leadership. Weight Watchers has been one of the most trusted and effective names in weight management for more than six decades. As the world's understanding of weight health is being rewritten, Weight Watchers is uniquely positioned to lead the future of our industry as a company that is grounded in trust, powered by science, and committed to expanding clinical access to deliver meaningful, lasting results. This is a forward-looking vision we are eager to communicate. That's why we're executing a comprehensive brand refresh that combines a more contemporary and engaging brand expression with a renewed focus on superior proven outcomes including our growing medication offerings. The effort will launch for peak early in the new year and extend across our visual design, tone of voice, and how and where we show up, presenting a bold, modern Weight Watchers. In addition, and over time, we'll evolve our marketing strategy from expensive performance-driven channels dominating spend to a go-to-market strategy built on proven results and real people. while leveraging our role as the trusted authority in this space, and ultimately creating an organic flywheel for growth. We'll lean into social and community-driven storytelling, leveraging the real voices of our doctors, clinicians, coaches, and members to expand reach and bring the Weight Watchers experience to life. We're also dealing with the reality of many years of prolonged deep discounting, a tactic that takes time to wean off. Rather, we will shift towards more of a value-based pricing approach that will complement our brand modernization work, the expanding scope of our solutions, and importantly, the success of our programs. Comprehensive pricing and product studies underway across our top global markets will inform this next phase for the business, helping us balance access with value and rebuild our product and pricing architecture for durable revenue expansion. This work will all lead into our peak season objectives. That includes breaking through preconceived notions of the Weight Watchers brand and reestablishing ourselves as modern and relevant for an expanding set of target customer segments. It means driving widespread awareness of Weight Watchers' role as a growing provider of GLP-1 medications. And it includes acquiring both net new customers and lapsed rejoiners through compelling product innovation and marketing. Finally, as a business with a strong EBITDA margin profile, we remain committed to driving ongoing operational improvements as we also invest for growth. At every level of our organization, we're focused on efficiency, disciplined execution, and prudent resource management. Following the execution of our previously committed $100 million in run rate savings, we continue to identify new opportunities to enhance productivity and performance across the business. Part of this effort is rooted in new technologies. The implementation of AI-powered voice support has improved member resolution rates and reduced service costs, while new AI tools within our clinical support model being rolled out over coming months will handle increased administrative tasks. These are the first steps in a broader effort to streamline and automate processes across our global operations, improving both speed and quality while reducing costs to serve. We're also more closely integrating our clinical and behavioral operations, which is vital to our long-term strategy. This integration is improving efficiency, facilitating cross-training of our teams, fostering shared expertise, and delivering a more cohesive experience for our members. These efficiencies make our work faster and more cost-effective, while preserving the high-quality personalized care that defines Weight Watchers. Through this disciplined operational approach, We're building a more agile, efficient, and resilient organization, one that enables reinvestment and growth, protects margins, and strengthens our foundation for sustainable long-term value creation. In closing, our work to hone our strategy and streamline our operations has positioned the company for a new chapter of growth and impact during historic moments. We're leveraging decades of expertise and name recognition with cutting edge tools to write the next chapter of Weight Watchers, a new story which redefines the meaning of weight health and positions us for long-term growth and leadership in the industry we created. Much work remains, but as our members know well, hard work can create new beginnings. Our direction is clear and the possibilities are exciting. And with that, I'll turn it over to Felicia to cover the financials.