Okay, great. Good afternoon, everyone. Thank you so much for joining us. My name is Nathan Feather. I am Morgan Stanley's Small & Mid-Cap Internet analyst. Just doing one presentation here at the healthcare conference. I am pleased to be joined today by Felicia DellaFortuna and Jon Volkmann, WeightWatchers, Office of the CEO. Thank you so much for joining us today. Well, thank you for having us. Thank you. Before we begin, a few quick housekeeping items. For important disclosures, please see the Morgan Stanley research disclosure website at www.morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley sales representative. With that, let us kick it off. I think a lot of investors are familiar with WeightWatchers as a brand, but not necessarily what the business looks like today. Can you give us an overview of where WeightWatchers is and how that has changed That infrastructure pretty materially. It went from about $1.6 billion down to approximately $465 million. As part of that, we were also able to half our interest expense, and we went from about $100 million to $50 million. Now this year, we do expect WeightWatchers to be free cash flow positive, which has allowed us to now start to reinvest in the business and really take shape in terms of this exciting GLP-1 stage. Just to give a bit of an overview on our products. We have two business lines, behavioral and clinical. Within our behavioral line, we have two products. For those of you that aren't familiar with WeightWatchers, we have a Core product and a Core+ product. Our Core product is access to our digital app and most importantly, our Points nutrition program. This is the most studied diet program across the world, and it does incorporate a lot of different factors into one easy Points number to allow for more seamless food tracking for members. This is a business that has been in decline, and that has been one of the things that has been most material and also an overhang to WeightWatchers. Post-bankruptcy, we did very much focus on our Core+ offering. Historically, people, when they think of WeightWatchers, they think of our Core+ offering, which is individuals going to meetings and getting advice from a coach that sits in a room. We had a hypothesis internally that there was still a need for community and support. It just needed to follow the new age. People were going to be less likely to drive to workshops, but they could maybe attend one virtually. We are very proud now that we have launched virtual experiences. Whether people are looking for emotional support, whether people are looking for more details on GLP-1, or they're looking for just utility, like how to cook for a family of four. If you go on the app at any point in time, you will see that there's a virtual experience that you can attend. It's been a fantastic way of us curating community in this day and age. The other thing that we were also interested in is, are people still interested in structured behavioral programs for weight loss? What we were able to do is up-level our overall general Points program, and we launched a GLP-1 Success program as well as a menopause program in our Core+ SKU. On our GLP-1 Success program, whether you are on meds with or without WeightWatchers, and I'll get to that in a moment, you can engage with our GLP-1 Success program, and that has been a fantastic uptick across our members. We also have a menopause program that more specifically focuses on menopausal weight gain and fiber intake to also assist individuals. The one thing I will mention on Core+, because we have been a business in decline, our Core+ revenue line within our behavioral business has shown now three sequential quarters of growth in our subscriber count, which has happened only one other time in the last 15 years. We are definitely changing the way that our financial profile looks, and we are so proud of showing the growth in this Core+ SKU overall. It is very important because it is showing us that people do still want the accountability and the ease and the support that WeightWatchers has always provided. They just want it to be in this day and age, right? That is exciting. The last is that we also have a clinical business where we do prescribe GLP-1s. I will let Jon touch on that in just a moment. This has also been an area of business that has shown accelerated growth. In Q2 alone, we were able to grow our subscriber count by almost 56%. I think it was like 55.7%, but very material growth. This is a business line that has gone from 10% of our revenue in 2024 to an anticipated 25%-30% of our revenue in 2026. We now have multiple product lines that stay true to WeightWatchers in that diversified support, but are also introducing GLP-1s. We are very excited about that. Jon can touch a bit more on our clinical offerings. Sure. GLP-1s are obviously one of the most significant clinical breakthroughs of our lifetime, and we at WeightWatchers have embraced them, but we have aimed to do so in a way that feels true to our roots. We have a telehealth business today that we call WeightWatchers Med+, where we have hundreds of clinicians providing specialized obesity care to patients across the country. We really feel that it is important to go beyond the prescription and ensure that people are getting a high level of support and care in order to be successful while they are on that medication. Our members get unlimited access to their clinical team to help guide them through this process, which often can include things like side effects, dose titration. We want to make sure that members and clinicians have a high level of touch and communication as they go through that process. We also do guide people through the insurance process. These medications have come down in price recently, which is great to see, but they still are very expensive if you are paying out of pocket. Through our EHR, we are able to file prior authorizations at scale on behalf of our members and help get them covered for medication, such that if they do have insurance coverage, they are paying the lowest possible price out of pocket. Then with all of that clinical care, we pair it with our WeightWatchers behavioral programs to make sure that people are getting the behavioral support they need to build healthy habits to help them be successful, potentially if they ever do transition off of medication. They get access to our diet tracking app. They get access to the virtual workshops that Felicia DellaFortuna just mentioned. It is great to see people go through this, something like a new medical offering with the care and the support of other people who are going through the same journey as they are, and they are able to share that experience. We are very excited about GLP-1s, and we are very excited about our Med+ business, and we feel like it is going to be an important cornerstone for us to build around. A lot in there I want to unpack. Maybe before we get into the Core business, you just hired a new CEO. Can you break down why it was the right fit and how it impacts your strategic direction from here? Yes. We just announced a new CEO, what, last week? Yeah, I think I think it was. We are very excited for him to join. What you hear from Jon and I is a lot of work that has been done strategically over the past couple of years in really setting WeightWatchers up for a bright future, and we are very excited about that. I think a lot of what he brings to the table is that operational excellence and subscription revenue growth. We are excited for someone to be able to accelerate what we have been able to set the groundwork for in this next phase for WeightWatchers. Okay. Now, let's dig into the clinic business. For investors that are unfamiliar with what you offer today in Med+, what do you explicitly offer for consumers, and how does that fit into the broader GLP-1 ecosystem? Yeah. So what we offer is access to a telehealth business, to clinicians who can prescribe GLP-1s and manage care. As I mentioned during the intro, we also help them go through the insurance process to make sure they are paying the lowest possible price for medication. There are a lot of people that are coming out to play in this space. GLP-1s are obviously very, very popular right now. But a lot of people are focused on just one part of the journey, just on how to onboard people onto medication. We really feel like there is a bit of a false narrative out there that you can just give someone these medications and send them on their way and have them have a successful journey. I think that shows up most prominently in the adherence data that you hear from Big Pharma, that people, on average, are staying on these medications for about six months. Within those averages, there's people that are coming on and stopping right away because they are experiencing side effects. There's people who can't afford to stay on the medication or experience a work disruption and no longer have insurance coverage. So what we are really about is providing people with the support they need to be successful while on the program. One stat that we love to talk about is our digital GLP-1 Success program that's included in our Med+ offering. When members engage with that, 72% of them have noted that they've been able to better manage their side effects. That is really, really impactful. We really feel like with our Med+ program, we're going beyond the prescription and providing wraparound care so folks can be successful and build successful habits to maintain long-term health benefits. You touched on it a little bit there, but why should a consumer choose your clinical offering over a primary care provider, a different telehealth provider? Critically, how do you tell that message to consumers to help open up the top of funnel? Yeah, that's a great question. You think about your last primary care appointment. It was probably about 12- 15 minutes, and the clinician was probably trying to pack in a lot of clinical care on a number of topics into that visit. Then you probably didn't go back to see that person again for another year. What we're providing is really high touch, high quality, obesity-focused care within a clinical setting. Our members have unlimited access to their clinician to do the video, the telehealth appointments that they need to do that are solely focused on weight care, then able to follow up with them. They're able to log side effects. They're able to meet with registered dietitians. The way you can look at it is it's really an obesity and weight care focused offering in a clinical setting versus just a clinical setting that's meant to get someone a prescription and send them on their way. In terms of how we tell that message, it is, I would say, a more nuanced message than a lot of people are competing on price right now. If you're trying to reach people through D2C and they're scrolling through a social platform, price is obviously an easy thing to communicate to try to get people interested in your platform. But what we're really trying to do is let people know that we are the place. We've been in business for over 60 years solely focused on weight care, and that we are the place to come if you want to have a successful and supportive clinical weight care journey. In terms of the backwards looking, what that's actually translated to from a Clinic Net Adds perspective has been relatively volatile, as you've seen a competitive and ever-changing environment. On an ongoing basis, what's the quarterly pace or what's the right way to think about subscriber growth in the clinical segment? I think overall, we are trying to manage across our portfolio of WeightWatchers, and like I mentioned, we have three product offerings, and they have differing margin profiles, and it's very important for us to be agnostic to where a member is in their weight loss journey. I do think as the next wave of individuals who are interested in GLP-1s start to engage with GLP-1, they are looking for more information. They are hearing stories of, "I was not able to drink a glass of wine at dinner because I was having side effects, and I don't want this to impact my social life," or, "I want to be successful on the meds, and I want to be able to lose the weight," and all of that. I do think with all of the things that Jon had mentioned, that is really at the crux of where our model is differentiated, because it is about guided support from experts. In that, I do think while our subscriber count has been volatile, we have shown consistent increases in our overall revenue. Just as I mentioned earlier, going from clinic revenue being about 10% of our total in 2024 to that being about 25%-30% of our revenue in terms of expectation for 2026 does show that we are still able to acquire members in this ever-changing ecosystem. But what really matters is the adherence to the meds and the wraparound of care, and that is really where we feel like our differentiation is. You spent heavily on marketing the clinic offering in 1Q, really the first time you were able to go full throat on that. What are the learnings that you gained from that spend, and how does that inform your willingness to apply incremental marketing dollars here going forward? Overall, I did note, in 2025, we had a debt negotiation, and the way that we were able to effectuate that transaction is we did do a prepackaged Chapter 11 that was about a month and a half. We entered into that at the beginning of May. We exited before the end of June in 2025. What was coming up in Q1 of 2026 was this was our first opportunity really to let folks know that WeightWatchers is still here, and that GLP-1s didn't kill WeightWatchers. We actually do prescribe GLP-1s. In Q1, we did index more heavily into spend than what we normally do overall for marketing. We spent around 40%-45% of our total anticipated spend, where in previous years we would spend about 30%-35% of that. I think it was really important for us in terms of overall learnings. People know WeightWatchers. People know the brand of WeightWatchers, but just like we're sitting here today, the business has so materially changed that there is an education we need to do of what WeightWatchers today offers versus when people have last thought of WeightWatchers and what that looks like. One of the things that has impacted our business the most is we have very high brand awareness, but we don't have a lot of brand awareness that we offer GLP-1s. We definitely wanted to get that into market in Q1. I think we did it in the traditional sense, in that we invested in television, and we invested in top-of-funnel marketing. We were anticipating that that would continue to create halo for us as we moved through the year, as more people adopted our WeightWatchers Med+ offering. What we had noticed is that that overall brand awareness had stagnated, and that we've stayed around 30% brand awareness, which is very different from the overall WeightWatchers brand awareness. What we have learned from that is we do need to be more focused on how we create a steady drumbeat that we do offer meds, and we do have multiple GLP-1 offerings, even if an individual doesn't want to engage with meds with WeightWatchers, and see things coming from us along that spectrum. One thing we just announced is our expansion with Sam's Club, and that being a way for our brand awareness to get out there in terms of offering GLP-1s. We've also done a lot with influencers that are happy to tell their story of how they lost weight with WeightWatchers. I think overall, it's a great opportunity for WeightWatchers to cut through the noise and to really allow for our model to differentiate relative to others, and I think that's our biggest learning from Q1. Okay, great. Well, one more question on the clinic segment. Zooming out, you've grown the clinic business from effectively zero a few years ago to about 200,000 subscribers today. How should we think about translating the program quality and the competitive advantages you do have into the path from growth from here, and what are your levers you are able to pull to continue to drive that revenue growth on a multi-year basis? I think one of the levers that we have is, because we've been in business for 60 + years, we do have a huge database of customers that have engaged previously with WeightWatchers. What we had noticed for Q1 2026 is that overall consumer interest is increasing in GLP-1s. That is a fact. Being able to more specifically message to past members of WeightWatchers that we do now have this offering available, I think is a continuation of the way that we are going to be able to scale. I would also say that we have a wide spectrum of product offerings. It's not just important for us, for you to engage with Med+ with us. We want to be wherever you are on your weight loss journey, and we want you to be able to maintain your weight loss. So we are comfortable, right? If someone was a WeightWatchers Med+ subscriber downgrading to a WeightWatchers Core+ subscriber, or if someone was a Core+ subscriber upgrading to that. So I do think overall, we have multiple levers that are available to us, not just in the marketing front, but also in the consumer database, in being able to continue to scale that business. Yeah. In addition, we've also direct to consumer is an effective acquisition channel, and it's one where you can add a lot of scale quickly, but during periods of heightened competition, it can be expensive. We've taken a lot of steps over the past 12 months to diversify our acquisition base. That's come through our B2B offering, which while still is small compared to the rest of our business, does bring in clinical members. Obviously, employers want their employees to be healthy, and they want to contribute funds to this type of endeavor, but they want to make sure that if they are going to contribute funds to GLP-1 access, that their employees are getting them from a reputable clinician who's going to provide high quality care and ensure that they're building healthy habits. We also went live as a preferred telehealth prescriber on LillyDirect during the first half of the year, which was really exciting for us as well. So now when patients are Googling Zepbound or Found and going to LillyDirect, they'll see us on there as a preferred telehealth provider. Direct to consumer is always going to be a significant acquisition channel, as well as tapping into our existing base of behavioral members. But we've made a lot of strides as well in establishing footing elsewhere to generate economically viable sign-ups over time. Okay, great. Really interesting on the clinic side. Let's switch over to the behavioral piece of the business. This has been an area with larger headwinds, seeing the revenue base contract for the past several years. What would you identify as the key macro headwinds you've been facing, and do you see a path for those to soften over time? I mean, overall, right? There has just been a lot of introduction in the space as it relates to nutrition, right? In our behavioral program, if you just think about Core, right? It's offering nutrition guidance. You think about Core+, it's offering nutrition guidance alongside support and accountability. We're happy about the trend dynamic that we're showing in Core+ because it does mean a member is willing to pay for that incremental support and accountability. For Core, though, we've always said do it yourself has always been a competitor. AI is a competitor, right? There is a lot of places for people to get information about their nutrition. I think for us, though, it is in the Points program, easier to track one thing versus tracking caloric intake versus protein versus fiber and all of the macros that people are saying is very important. I would also say that one of the ways for us to kind of stem that bleed on Core is we have upleveled our technology. One of the hard parts, right, of having a debt burden like we had at WeightWatchers for so long is that we weren't able to invest in the tech, and the tools became dated. If you have a new app that is immediately giving you all of this information, it's like, "Why WeightWatchers?" Well, the program works, right? That is fantastic, and check on that. But we did need to make a lot of the tools more easily usable. We have introduced quite a bit in terms of AI in our app. Now, if you take a photo of your food, we are able to give you the Points value just in one click. Some of the things we talk about, right? It's very hard to, if you have a bowl, like a salad or whatever, to get all of the ingredients in there. I will say our AI is pretty amazing, and it can figure that out and give you the Points. We've also introduced voice tracking, so you can just talk into your phone, and that is available to you. We have barcode scanning now, so if you are at Trader Joe's and you just want to scan a product, that immediately tells you the Points intake. All of these tools we do think are going to be very impactful in getting folks then able to track, right, and then getting the best on their weight loss journey. Well, digital weight loss has always been a competitive industry. How would you say your behavioral offerings are differentiated from peers, and how can you translate that to stabilizing the revenue base over time? I would say the differentiation point across the spectrum is the fact that the Points are calculated based on scientific research. This isn't just necessarily just about caloric intake. If it was just caloric intake, right, it would be very easy kind of across the board to figure out what is best for your body and what is best for long-term nutrition guidance. This is a program that has been studied. This is a program that has had a lot of hours of research going into each of the individual Points programs or Points numbers, and I think that's one. I also think there's very few places that support the emotional journey of weight loss. A lot of people don't want to tell their friends that they're embarking on a weight loss journey, but they definitely want to tell a friend afterwards when they've lost the weight where to do that. I do think, just with our millions of members, this is another area where we have locked in and have continued to honor our heritage of community support and accountability. I think there's very few places that provide all of that, which is where I do think we are also differentiated. Okay, great. Now, I want to touch on one of the bright points, certainly from your recent results, which has been Core+. A lot of success here in driving adoption. This is the more premium tier with three consecutive quarters of potential growth. What's led to that improvement, and how do you continue to expand adoption? This one's fun for me. I think overall, when you're thinking about just the amount of information that people can consume across all of the social platforms, AI, there is no shortage to information being available at your fingertips. I do think we found a very interesting way of creating communities through these virtual experiences that are included in our Core+ offering. For example, if you're a midnight snacker, and that is where you always go sideways in terms of your weight loss goals, we have an experience for that. You can meet other midnight snackers and learn tools of the trade from others that are kind of going through something similar. That for me, just having that available to our consumers and having them select the things that are most important to them, I do think has been a very important driver of our growth. I would also say just this up-leveling of what we've been able to do in terms of behavioral structured programs with our GLP-1 Success Program and menopause. Those have also helped as well drive that growth. I do think that that's an area of sustainability for us. The proof is in the stats, right? For our GLP-1 Success Program, if you do engage with our program, which does focus on protein, people have shown 29% more weight loss than if they didn't engage with the program. I think that's pretty impactful when you're thinking about why us. All right. Now, I want to talk a little bit on your B2B business. It's been something that's evolved a lot over the past few years, giving employers options across the weight loss spectrum. What do you see as the value you can deliver for your employers? Where are you in scaling that business, and when might we start to see greater contribution to the P&L here? Yeah. So I think from a value standpoint, as we talked about before, employers devote a lot of money to the health and the wellbeing of their employees. They always want to make sure that those dollars are well spent and are going to drive the outcomes that they want to drive. So obviously GLP-1s are something that are still fairly expensive, and the care around them is expensive. So employers want to make sure that they are driving people towards platforms and towards clinicians where they're going to get proper clinical support, and the wraparound care needed to have a successful journey on the medication. We really feel like that positions us very well to be somebody that an employer wants to partner with. We obviously launched a really exciting partnership with UnitedHealthcare last year, and it's been great to see that continue to progress. We obviously had Sam's Club go live recently, which was exciting. I'd say for the longer term, as we look ahead, what we want to do is look for more of these big opportunities to partner with a large health system, a large company that is like-minded in our approach, that we can look to drive positive results for either their members or employees. You touched on the Sam's Club partnership. That's a recent launch. Give us an overview of what's happening here, the potential you see for this partnership, and then zooming out, can you help us think more broadly about your partnership strategy and where you think there might be gaps in that portfolio? Sure. With Sam's Club, what we're doing with them is essentially all Sam's Club members now will get access to WeightWatchers at a discounted rate. The discount varies by program, but we're making that available to all Sam's Club members. What that does is it really aligns two very trusted brands in their space together. It allows us to offer a benefit to people that many of which fit into our target demo and people that we're used to servicing, and that we feel like we can service very well. Sam's Club also has a pharmacy as part of its offering. When Sam's Club members sign up and choose our Med+ program, we can make it very easy for them and have it front and center for them to get their prescription fulfilled right at Sam's Club Pharmacy, and really just bring more convenience to their day-to-day health and wellbeing, while getting the WeightWatchers brand name out there to a large group of people. I think that's something that we're going to look to replicate elsewhere. It's something that fits neatly into our strategy. We have the opportunity to not only reach their members digitally through email and through activations on their website, but also to send WeightWatchers coaches and registered dieticians and clinicians to Sam's Club in-person locations. That's an advantage that we have as a company with the scale that we have, and the footprint that we have across the country and across the globe. Now, you've also been able to significantly reduce the cost, especially SG&A within the business over the past few years. Do you see more room for optimizations here, and if so, where? I'm the finance person, so yes, I always see room for optimization. I would say one of the areas that we have really optimized is in our gross margin. As we have three different product lines, all with three different maturities, Core being one of the longer maturities, Core+ initially in its phase being a very long revenue line. They were three different margin profiles, and we were trying to manage across the three. Jon and his team have done a lot in terms of product improvement and allowing for that execution to be more seamless. Just as I mentioned, the clinical growth, because we do have to cover the cost of clinicians, and they tend to be more expensive than if someone is just engaging with our digital app. We have been able to maintain near record high margins of approximately 73% overall, which I think is pretty remarkable, and it is an area that we have said this year we do anticipate our adjusted gross margin staying above 72%. With all of the improvements Jon and team have made, we can really be agnostic to what product offerings someone joins and really match the product offering for what is best for that person on their weight loss journey. Well, we started the conversation with it, but post-restructuring, you've been able to reduce the debt load of the business really substantially by about four times. Those notes now due in 2030. Given that, what's the cash generation potential of the business today? How do you plan to tackle that over time? What are your thoughts on doing potentially more voluntary solicitations to reduce the debt faster, like you did earlier this year? Our guidance for the 2026 year is $620 million-$635 million of top-line revenue, and our adjusted EBITDA is $105 million-$115 million. As I mentioned, our debt burden had reduced from $1.6 billion down to $465 million, and since then, we have been very opportunistic about lowering that debt balance further. Right now, we're just north of $400 million. We did pay down the debt in a prepayment, and also we did a tender, and we took advantage of where the term loan was trading, and we were fully subscribed at 68.5% of par. This is an area that we are continuing to make sure that we can lower the overall debt burden. But I do feel pretty good about where we are, and in terms of adjusted EBITDA relative to our net debt. Just for reference, our Q2 cash balance was slightly above $100 million. Overall, we are in a much healthier position than we were just a year ago and very excited about continuing on that path. Well, it's been a great conversation. One more question to put a bow on things. What are one or two areas you think investors most underappreciate or misunderstand about the WeightWatchers story? Ooh, that's a good question. I think with the brand awareness, like I mentioned in the beginning, everybody assumes they know what WeightWatchers is. The two things that I hear the most are frozen foods, which we haven't been in that business for a while, and the second is, "I don't want to go to a meeting. I don't want to have to drive to a meeting." I think the thing that people are missing is that we have always been scientifically led, and we are embracing GLP-1s alongside what has allowed WeightWatchers to exist for 63 years. I do think that that competitive offering is missed. I also think just the improvements we've made in overall adjusted growth margin and the sustainability of the cash flow long term is another thing that's missed, and I do think that that is a testament to Jon and team in terms of all of the improvements that they've made on that overall, and that that is sustainable for the go forward as well. Yeah. I would call out our clinical differentiation. You read headlines every day that this company has GLP-1s, or this company now has GLP-1s, and these medications are obviously powerful catalysts for weight loss, but they're not the whole answer. It's really, really important for people to get high-quality care while they're on these medications, which are very, very powerful and need to be taken appropriately. There's also a multitude of form factors, and there's going to be more coming to the market every day. Orals were launched. There's two different types of orals out now, each with a differentiated clinical profile, so it's extremely important that you're working with a clinician who understands you, understands your clinical profile, and can get you the right medication for you to be successful. Well, thank you so much, both, for being here. Thank you for having us. Thank you.