Shareholder letter
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#1 most trusted Weight Loss Program in 2026 according to Newsweek / BrandSpark NAME: kimberl e y progress: -32 l bs * program: p oin t s MADE FOR MEMBERSQ3 2026 Shareholder Letter nov 5 2026
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Business Update Revenue: Q3 Revenue was $152.9 million, down 11% year-over-year, while Clinical Subscription Revenue grew 48% year-over-year to $38.0 million. Core+: Q3 Core+ End of Period Subscribers reached 546 thousand, up 16% year-over-year, marking a fourth consecutive quarter of sequential subscriber growth, a milestone we have not achieved in 20 years. Clinical: Q3 Clinical End of Period Subscribers were 174 thousand, up 40% year-over-year. Med+ continues to reach people who are new to Weight Watchers, with approximately 60% of Med+ sign-ups coming from such new members in Q3 2026, versus approximately 50% in Q3 2025. Mark eting: Q3 marketing expense was $33. 1 million, or 21.6% of Revenue, reflecting lower spend in the quarter before we approach 2027 peak season with continued allocation of spend across our portfolio. Gross Margin: Q3 Gross Margin was 71. 1% and Adjusted Gross Margin i was 74.6%, both the highest of the first three quarters of 2026. Profitability: Q3 Net Income was $15. 1 million, representing a 9.9% Net Income Margin, and Adjusted EBITDA i was $51.7 million, representing a 33.8% Adjusted EBITDA Margin i . Cash and Cash Equivalents: Cash and Cash Equivalents were $126.4 million at the end of Q3, up from $101.5 million at the end of Q2 2026. Narrowing FY 2026 Guidance: We are narrowing our previously provided full year 2026 guidance ranges to $625 million to $630 million of Revenue and $110 million to $115 million of Adjusted EBITDA ii . Q3 2026 re fl ects gro w t h in o u r h ig h er - val u e o ff erings % CHA N GEQ3 2026 Q3 2025 Revenue $153M $172M (11%) Behavioral $114M $145M (22%) Clinical $38M $26M 4 8 % End of Period Subscribers 2.3M 3.0M ( 2 3%) Behavioral 2.1M 2.9M (26%) Clinical 174K 124K 40% Monthly Subscription Revenue Per Average Subscriber (ARPU) $21.17 $18.52 1 4% Financial Metrics Q3 2 0 2 6 Q3 2 0 25 71.1% 72.1%Gross Margin 74.6% 75.1%Adjusted Gross Margin i $15.1M $(57 .5)MNet Income (Loss) 9.9% (33.4%)Net Income (Loss) Margin $51.7M $42.8MAdjusted EBITDA i 33.8% 24.9%Adjusted EBITDA Margin i See “Definitions and Performance Indicators” for definitions for Revenue, End of Period Subscribers and Monthly Subscription Revenue Per Average Subscriber. See “Reconciliation to GAAP Measures of Non-GAAP Financial Measures” for further detail on adjustments to the most comparable GAAP financial measures. A reconciliation of the forward-looking full year Adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of the Company's control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. 1 Performance Indicators Revenue rounded to the nearest whole million
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ONE ST RA TE GY ONE P LA T F O RMADA PTIN G TO THE MARK ET S U PPO R T A T E V E RY ST AG E Q2 2025 $1.15B of debt removed from the balance sheet $1.6B Total debt, before vs. at emergence $465M $18.52 monthl y revenue per subscriber, up 9% from Q3 '24 $20.59 $18.24 $17.44 R even u e p er s u bscr i ber b y qu arter $20.90 $18.97 $17.00 $21.17 $18.52 $16.99 2026 Q1 Q2 Q3 Q4 G ross marg i n · GAAP ad j . 70.1% gross margin; adjusted gross margin i near record highs a t 74.4% 74.4 % 70.1 % 73.6 % 70.5 % 73.6 % 70.3 % 74.6 % 71.1 % Q4 ' 2 5 Q1 ' 2 6 Q2 ' 2 6 Q3 ' 2 6 E nd of p er i od C l i n i cal s u bscr i bers +51% C l i n ical s u bsc r ib e r g ro w t h i n a q uarter 124 K Q3 2 0 2 5 130 K Q4 2 0 2 5 197 K Q1 2 0 2 6 Q2 2026 term loan p a y do w n $41.4M term loan retired, $465.0M to $423.6M outst anding C ore + s h are of total s u bscr i bers 24 %of our members now choose higher-v alue Core+ 20 % 22 % 24 % Q1 2 0 2 6 Q2 2 0 2 6 Q3 2 0 2 6 RESETReset the balance sheet and set four strategic pillars. DIFFERENTIATEDifferentiate higher-value tiers to support members at every stage. STREA ML INES treamline operations and protect margins as higher-value tier memberships gro w . S C A L EC ontinued investment yielding scale in M ed + offering. STREN G T H ENS trengthen the balance sheet : generate cash and pay do w n debt. F O C U SF ocus investment on w hat sets us apart : human support. Q4 2025 Q1 2026 Q3 2025 Q2 2026 Q3 2026 Before At emergence $36.8M $41.4M C ash outlay Debt retired $18.73 2025 $17.30 2024 Q3 CONNECTS THE PIECESWhat we learn shapes where we invest. See “Definitions and Performance Indicators” for definitions for Revenue, End of Period Subscribers and Monthly Subscription Revenue Per Average Subscriber. See “Reconciliation to GAAP Measures of Non-GAAP Financial Measures” for further detail on adjustments to the most comparable GAAP financial measures. 2
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T o Our V alued Shareholders Weight Watchers was built on a conviction that has only grown more relevant: reaching and sustaining weight loss requires the right combination of treatment, guidance, and support. For more than six decades, our science-backed programs, coaches, and community have helped members reach their weight loss goals. GLP-1 medications are transforming weight management. Integrating these medical advances with behavioral support and human connection is what differentiates Weight Watchers and helps members throughout their weight loss journeys. Since becoming President and Chief Executive Officer on October 1, I have made it a priority to spend time listening to our members, coaches, clinicians, registered dietitians, and colleagues. Their experiences reinforce something fundamental about this business: there is no single path to weight loss, and the support people need varies from person to person and over time. I was fortunate to meet someone at one of our workshops in Denver who has been a member since 1966, and she shared her personal story of meeting Jean Nidetch, the founder of Weight Watchers. Her story reminded me of why we do what we do every day, and the incredible and positive impact we have on so many people’s lives. We remain committed to bringing clinical care together with behavioral support, coaching, and community. We will be deliberate and disciplined about where we focus and invest, using member feedback, engagement data, and measurable results to guide our decisions. We are beginning to see encouraging evidence of how members are responding to our higher-value product offerings. The number of Core+ members taking GLP-1 medications has nearly tripled over the past year, while 40% more Core+ members participated in virtual experiences than a year ago. These developments reinforce the relevance of combining the medical advances transforming weight management with the necessary support, behavioral guidance, coaching, and community that have long defined Weight Watchers. Whether members receive medication prescribed by Weight Watchers Clinic or another provider, we are focused on providing the support that meets their needs, wherever they are on their journey. Where our Business Stands Competition in the weight-loss category continues to be unabated, reinforcing the importance of highlighting the differentiation of our offerings which provide expert guidance, personalized support, and community. That is where we are concentrating our efforts: Core+: Core+, our higher-value Behavioral offering, grew subscribers for the fourth consecutive quarter, a milestone we have not achieved in 20 years. Among members upgrading from Core to Core+, roughly one in five was taking a GLP-1 in Q3 2026, compared with approximately one in twenty in Q3 2025. As adoption of new weight loss medications grows, we believe evolving our platform to support members however they choose to approach their weight loss journey positions us for long-term success. Clinical: Med+ builds on the behavioral foundation of Core+ and adds ongoing care from clinicians trained to support people with obesity. This integration distinguishes our offering from others’ services limited to a prescription alone. Med+ continues to reach people who are new to Weight Watchers, with approximately 60% of Med+ sign-ups coming from such new members in Q3 2026, versus approximately 50% in Q3 2025. Marketing: In September, we launched The Weigh In, a weekly podcast hosted by Samhita Mukhopadhyay, our Head of Content and Impact, exploring weight-loss journeys, wellness trends and GLP-1 stigma. The launch attracted national coverage, including a New York Times profile. We continue to recalibrate and diversify our marketing approach to expand the reach of our product offerings through targeted content and creator collaborations, while exploring opportunities to draw on the relationships our coaches have cultivated within their communities. 3
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W h a t o ur O ff e r i n g s S h ar e C o r e, o ur d i g i t a l B e h a v i o r a l o ff e r i n g, p r o v i d e s s c i e n c e-b a c k e d w e i g h t -m a n a g e m e n t t o o l s a n d b e h a v i o r a l gu i d a n c e. C o r e+, o ur h i g h e r - v a l u e B e h a v i o r a l o ff e r i n g, a d d s c o a c h i n g, w o r k s h o p s, v i r t ua l e x p e r i e n c e s, a n d s p e c i a l i z e d p r o gr a m s, i n c l u d i n g GL P - 1 Su c c e s s, w h i c h s up p o r t s m e m b e r s t a k i n g GL P - 1 m e d i c a t i o n s e v e n w h e n p r e s c r i b e d b y p r o v i d e r s o u t s i d e o f W e i g h t W a t c h e r s C l i n i c. M e d+, o ur C l i n i c a l o ff e r i n g, b u i l d s o n t h i s b e h a v i o r a l f o un d a t i o n w i t h o n g o i n g c a r e f r o m c l i n i c i a n s t r a i n e d t o s up p o r t p e o p l e w i t h o b e s i t y , i n c l u d i n g a c c e s s t o p r e s c r i p t i o n t r e a t m e n t f o r e l i g i b l e m e m b e r s, i n t e gr a t e d w i t h b e h a v i o r a l a n d c o m m un i t y s up p o r t . W h e t h e r m e m b e r s o b t a i n GL P - 1 p r e s c r i p t i o n s t h r o u g h W e i g h t W a t c h e r s C l i n i c o r a n o t h e r h e a l t h c a r e p r o v i d e r , o ur p r o gr a m s c o n n e c t t h e m w i t h t h e b e h a v i o r a l gu i d a n c e, c l i n i c a l e x p e r t i s e, a n d h um a n s up p o r t t h e y n e e d t h r o u g h o u t t h e i r w e i g h t l o s s j o ur n e y s. M E M B E R O U T C O M E S 29% 30% 29%M O R E W E I G H T L O S T W I T H R E G U L A R E N G A G E M E N T W I T H G L P - 1 S U C C E S S L E S S L I K E L Y T O D I S C O N T I N U E T H E I R T R E A T M E N T P L A N F E W E R C A L O R I E S F R O M U L T R A - P R O C E S S E D F O O D S W e i g h t W a t c h e r s e d m e m b e r s w h o m e t w i t h a e g i s t e r e d D i e t i t i a n w e r e l e s s l i k e l y t o d i s c o n t i n u e t h e i r t r e a t m e n t p la n w i t h i n t h e fi r s t w e e k s c o m p a r e d t o t h o s e w h o d i d n o t m e e t w i t h a n D . W e i g h t W a t c h e r s m e m b e r s r e d u c e d t h e i r c a l o r i e s f r o m ul t r a p r o c e s s e d f o o d s b y , a t a n g i b l e m a r k e r o f t h e r e a l b e h a v i o r a l s h i f t s f r o m o ur a p p r o a c h. D e l i v e r i n g v a l u e c o n s i s t e n tl y m e a n s c h o o s i n g w h e r e t o f o c u s. W e b e l i e v e s u s t a i n a b l e gr o w t h w i l l c o m e f r o m f o c u s i n g o n w h a t m a tt e r s m o s t t o o ur m e m b e r s a n d t o t h e b u s i n e s s: Our m e m b e r s c o m e fi r s t . W h e n t h e y s u c c e e d, t h e p e r f o r m a n c e o f t h e b u s i n e s s w i l l f o l l o w . W e w i l l f o c u s o n w h a t s e t s u s a p a r t: h um a n s up p o r t , c o m m un i t y , a n d t h e e x p e r t i s e o f o ur c o a c h e s, c l i n i c i a n s a n d r e g i s t e r e d d i e t i t i a n s. W e w i l l b e d a t a d r i v e n, e v a l ua t e o u t c o m e s o b j e c t i v e l y , a n d s c a l e s u c c e s s ful i n i t i a t i v e s. W e w i l l b e d i s c i p l i n e d w i t h e v e r y d o l la r w e s p e n d, w h e t h e r t h i s i s i n m a r k e t i n g, p r o d u c t d e v e l o p m e n t o r t e c h n o l o g y , a n d d i r e c t i t w h e r e w e b e l i e v e t h i s i n v e s t m e n t w i l l c r e a t e t h e m o s t v a l u e f o r o ur m e m b e r s a n d o ur s h a r e h o l d e r s. T h e r e i s r e a l w o r k a h e a d. I f e e l g o o d a b o u t t h e f o un d a t i o n w e’r e b u i l d i n g up o n, a n d I a m e v e n m o r e e x c i t e d a b o u t t h e fu t ur e o f t h i s b u s i n e s s. I a m gr a t e ful t o o ur m e m b e r s f o r t h e i r t r u s t , t o o ur c o a c h e s, c l i n i c i a n s, r e g i s t e r e d d i e t i t i a n s, a n d c o l l e a gu e s f o r t h e i r c o m m i t m e n t t o o ur m e m b e r s, a n d t o y o u, o ur s h a r e h o l d e r s, f o r y o ur s up p o r t . S t e p h e n B y e, P r e s i d e n t a n d C h i e f E x e c u t i v e O ff i c e r S e e “S o ur c e s” w i t h i n “S o ur c e s, D e fi n i t i o n s a n d F i n a n c i a l D e t a i l s” s e c t i o n f o r fur t h e r d e t a i l o n f o o t n o t e s. 4
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Th ree Le v els of Su ppo rt MED+ | GLP-1 Access Get access to FDA-approved GLP-1 medication, if eligible, and clinical support.4 CORE+ | Signature Lose weight with our signature program — featuring human coaches and expert support. CORE | Basic Get simple and e ff ective tools to lose weight and build health habits. CORE CORE+ MED+ FOOD AND NUTRITION #1 doctor-recommended Points® program5 Nutrition guidance and recipes Tracking protein and macros COACHING & COMMUNITY Live fitness classes Workshops (virtual and in-person) CONDITIONS AND LIFE STAGES GLP-1 Success Program Support tailored to menopause CLINICAL SU PP ORT 24/7 C linician C are Team Dose tracking R efill reminders and side e ff ect tracking I nsurance support 2-week trial6 Unlimited Unlimited Unlimited Unlimited See “Sources” within “Sources, Definitions and Financial Details” section for further detail on footnotes. 5
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Q3 2026 Financial Performance and 2026 Outlook 6
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Subscribers and ARPU Core+ Subscribers grew for a fourth consecutive quarter Monthly Subscription Revenue Per Average Subscriber (ARPU) i $79.23$21.17 $70.82$68.52 $16.82 +14% Y/Y $16.39 $16.32 Q3 Monthly Subscription Revenue Per Average Subscriber (ARPU) was $21.17 , reflecting the continued subscriber mix shift to our Clinical business from our Behavioral business, as well as growth in Core+ subscribers within our Behavioral business. $18.52 $18.73 $20.59 $20.90 Behavioral and Clinical ARPU i Clinical Behavioral $67.55 $68.25 $17.04 $17.21 Q3 End of Period Clinical Subscribers grew 40% year - over - year to 17 4 thousand. End of Period Behavioral Subscribers declined 2 6% year - over - year to 2.1 million. W hile Core continues to decline, continued Core+ subscriber growth of 1 6% year - over - year to 546 thousand provides validation of our strategy to deliver greater member value through higher levels of personali z ed support, coaching, and community. End of Period Subscribers i (k) End of Period Behavioral Subscribers i (k) (26%) Y/Y 2,862 End of Period Clinical Subscribers i (k) +40% Y/Y 197 197 174 130124 2,631 2,463 2,291 2,122 See “Definitions and Performance Indicators” for definitions of End of Period Subscribers and Monthly Subscription Revenue Per Average Subscriber. 7
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Revenue and Gross Margin Clinical Subscription Revenue up 48% year-over-year Q3 Revenue was $152.9 million. Clinical Subscription Revenue grew 48% year-over-year to $38.0 million and represented 25% of total Revenue, up from 15% in Q3 2025. Within Behavioral Subscription Revenue, declines continue to be concentrated in our Core offering. Revenue ($m) 172 163 168 162 153 145 134 129 121 114 (22%) Y/Y 40 +48% Y/Y39 382726 Clinical Behavioral otals include ther Revenue Q3 Gross Margin was 71.1% and Adjusted Gross Margin i was 74.6%. The increase in Gross Margin compared to Q2 2026 was driven by ongoing operational efficiency initiatives to lower fixed costs and continued alignment with our subscriber volumes across our lines of businesses. Gross Margin % of Revenue 75.1% 74.6%74.4% 73.6% 73.6% 72.1% 70.1% 70.5% 71.1% 70.3% GAAP Gross Margin Adjusted Gross Margin i See “Reconciliation to GAAP Measures of Non-GAAP Financial Measures” for further detail on adjustments to the most comparable GAAP financial measures. 8
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Operating Expenses Lowest marketing quarter of the year, as planned Q3 Marketing expenses were $33.1 million, or 21.6% of Revenue. Following elevated peak-season investment in Q1, particularly in Clinical, we continued to recalibrate marketing spend across our portfolio of offerings. Q3 SG&A expenses were $33.8 million, or 22.1% of Revenue, reflecting lower depreciation and amortization and continued expense discipline. Adjusted SG&A i was $25.0 million, or 16.4% of Revenue. Q3 Product Development expenses were $5.2 million, or 3.4% of Revenue, reflecting operational efficiencies and a higher proportion of development costs capitalized in connection with ongoing platform and digital experience enhancements. Operating Expenses % of Revenue 4.8% 5.4% 28.6% 4.4% 4.0% 32.4% 34.9% 28.1% 40.2% 55.2% 31.0% 29.5% 3.4% 22.1% 21.6% 4.4% 17.8% 28.1% 5.4% 17.6% 40.2% 4.7% 14.8% 55.1% 3.9% 15.8% 29.4% 3.4% 16.4% 21.1% Adjusted Operating Expenses % of Revenue i Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Marketing Selling, General & Admin Product Development Marketing Selling, General & Admin Product Development See “Reconciliation to GAAP Measures of Non-GAAP Financial Measures” for further detail on adjustments to the most comparable GAAP financial measures. 9
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Profitability Positive Q3 Net Income of $15.1 million and Adjusted EBITDA i of $51.7 million reflect strong profitability Q3 2026 Net Income was $15.1 million (9.9% Net Income Margin), which included $13.0 million of depreciation and amortization, $10.9 million of interest expense and $10.7 million of tax expense. Adjusted EBITDA i was $51.7 million (33.8% Adjusted EBITDA Margin i ), reflecting continued strong operating performance and disciplined expense management carrying over from prior quarters. Net Income (Loss) ($m) and Net Income (Loss) Margin 1514 (6) (52) (58) Q3 2026 (33%) (4%) (31%) 9% 10% Adjusted EBITDA ($m) and Adjusted EBITDA Margin i 52 43 40 18 (2) Q3 2026 25% 11% (1%) 24% 34% See “Reconciliation to GAAP Measures of Non-GAAP Financial Measures” for further detail on adjustments to the most comparable GAAP financial measures. 10
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Cash Flow and Balance Sheet Cash balance up $25 million from Q2 2026 Cash and Cash Equivalents were $126.4 million at the end of Q3 2026. Cash Flow from Operations was $32.3 million in the quarter, which includes $11.4 million of quarterly interest to service our term loan. The cash balance at the end of Q3 also reflects capitalized expenditures of $7 .0 million in the quarter. Cash ($m) Cash from Operations ($m) 17 0 32 1 60 2 4 + $25m vs . Q2 1261 2 1 1 0 1 ( 3 ) ( 3 ) ( 34 ) Q3 2026 We have fundamentally transformed our balance sheet following our Q2 2025 Financial Reorganization: Term Loan Reduced total debt by over 70% from $1.6 billion in Q2 2025, with outstanding balance of ~$424 million as of Q3 2026 Maturity June 24, 2030 Interest Rate SOFR + 680 basis points, subject to certain conditions Cash Sweep Annual prepayments for excess cash above $100 million, based on the last 10 calendar days of the first quarter Q3 2026 11
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2026 Outlook We are narrowing our previously provided 2026 guidance ranges. We now expect Revenue of $625 million – $630 million (previously $620 million – $635 million) and Adjusted EBITDA i of $110 million – $115 million (previously $105 million – $115 million). Revenue Within Behavioral, we continue to expect year-over-year growth in Core+ subscribers. We now expect Clinical Subscription Revenue to be approximately 25% of 2026 total Revenue, up from 16% of 2025 total Revenue. Gross Margin We continue to expect a slight Adjusted Gross Margin ii decline in 2026 versus 2025, and now expect it to be approximately 74.0% (previously above 72.0%). Cash Generation We continue to expect to generate cash through the remainder of 2026, including approximately $45 million – $50 million of interest costs, quarterly capital expenditures consistent with prior 2026 quarters, cash taxes between $5 million and $10 million, and timing of marketing payments. Looking Ahead Our third-quarter results demonstrate the profitability and cash generation capacity of the business with Core+ delivering its fourth consecutive quarter of sequential subscriber growth. Our focus remains on demonstrating the value of the human support that differentiates our offerings, improving the reach of our marketing investments, and building on the capabilities shared across our Core, Core+, and Med+ offerings. We believe consistent execution across these priorities will position Weight Watchers for sustainable, profitable long-term growth. A reconciliation of the forward-looking full year Adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of the Company's control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. See “Reconciliation to GAAP Measures of Non-GAAP Financial Measures” for further detail on adjustments to the most comparable GAAP financial measures. 12
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Third Quarter Conference Call and W ebcast The Company has scheduled a conference call today at 8:30 a.m. ET to discuss results. The webcast of the conference call will be available on the Company’s corporate website, corporate.ww.com, under Events and Presentations. A replay of the webcast will be available on this site for at least 90 days. About W eight W atchers Weight Watchers is the global leader in science-backed weight management, offering an integrated support system built for the GLP-1 era that combines scientific expertise, medication, cutting-edge technology, and human connection. With more than 60 years of experience, Weight Watchers is the most studied commercial weight management program in the world, delivered through its No. 1 U.S. doctor-recommended weight-loss program5. Its holistic, personalized approach also includes U.S.-based clinical interventions and access to GLP-1 medications when clinically appropriate, and a global network of coaches and community support. Since 1963, the Company has led with science to deliver its members the personalized support they need to reach and sustain their goals. Members can access these solutions directly, or through Weight Watchers for Business’ full-spectrum platform for employers, health plans, and payers. In a landscape crowded with contradictory advice, isolating apps, and one-size-fits-all solutions, Weight Watchers offers a proven path forward that is rooted in research, grounded in empathy and designed to help every member feel better in their body and live a longer, healthier life. For more information, visit weightwatchers.com. “I have different communities, but the most important one is my Weight Watchers community because we're all the same. We're all working on something hard.” “Workshops are hugely important. Y ou're with people who have a uni q ue understanding o f what you're going through. It's palpable that everyone can relate.” Name: M A R IA Progress: -55 l b ** —Jessie, WW Member —Maria, WW MemberPROGRAM: MED+ Name: Jessie Progress: -58 l b * PROGRAM: P OIN T S S ee “S ources ” within “S ources, D e fi nitions and F inancial D etails ” section for further detail on footnotes. 13
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Sources, Definitions and Financial Details 14
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Sources * At 6 months, participants in a clinical trial of the WW program lost an average of 12 lbs (5.4% of body weight). Palacios et al. Effectiveness of a digital weight management program on diet quality: A randomized controlled trial. AJCN. 2025. ** At 12 months, members lost on average 44.5 lbs (19.4% of body weight) in an observational study of WW Med+ member data. Ard JD, Hong YR, Foster GD, Medcalf A, Nadolsky S, Cardel MI. Twelve-month analysis of real-world evidence from a telehealth obesity treatment provider using anti-obesity medications. Obesity. 2024. 1 Based on an internal analysis of 3,325 members who requested at least 1 GLP-1 medication refill through Weight Watchers Med+ and self-reported both a starting weight and weight at week 52. On average, members who logged in to the GLP-1 Success Program at least 4 days each week (n=376) lost 22.20% body weight, and members who never logged in to the app (n=2,949) lost 17 .20% body weight in 52 weeks. Not a randomized, controlled clinical trial. Self-reported outcomes have not been independently verified. Individual results may vary. 2 Based on an internal analysis of data from December 2024 to April 2025 of 3,264 Weight Watchers Med+ members during their first 12 weeks of membership. 6.5% members who had at least 1 RD visit discontinued their treatment plan. 9.3% members who did not have at least 1 RD visit discontinued their treatment plan. Treatment discontinuation means canceling Weight Watchers Med+ membership or switching medication treatment plans. 3 Based on a secondary analysis of Palacios et al. 2025, a 6-month randomized controlled trial (n=376 adults) that compared participants following WW to those given standard nutritional guidelines alone. Funded by WW International, Inc. 4 Copays, coinsurance and deductibles may apply. Cash-pay options available. Medicare beneficiaries are not eligible for Registered Dietitian visits. 5 Based on a 2023 survey by Cerner Enviza of 500 doctors who recommend weight loss programs to patients. 6 For your first two weeks, you can attend Weight Watchers Workshops for free when you purchase a Core Membership. Offer available in participating areas only. 15
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Fresh Start Accounting and Predecessor and Successor Periods In connection with the Company’s emergence from its financial reorganization process on June 24, 2025, the Company’s nine months ended September 30, 2025 includes a “Predecessor” period from December 29, 2024 to June 24, 2025, and a “Successor” period from June 25, 2025 to September 30, 2025. Additionally, the Company qualified for and applied fresh start accounting. Accordingly, the consolidated financial statements after June 24, 2025 are not comparable with the consolidated financial statements as of or prior to that date. The Company’s third quarter ended September 30, 2025, fourth quarter ended December 31, 2025, first quarter ended March 31, 2026, second quarter ended June 30, 2026 and third quarter ended September 30, 2026 all represent a Successor period. 16
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Definitions and Performance Indicators “Behavioral” business refers to providing subscriptions to the Company’s digital product offerings with the option to upgrade to unlimited access to the Company’s workshops and certain tailored versions of its behavior change program. “Clinical” business refers to providing subscriptions to the Company’s clinical product offerings provided by Weight Watchers Clinic and third parties combined with the Company’s digital subscription product offerings and unlimited access to the Company’s workshops and certain tailored versions of its behavior change program. “Revenue” - Our “Subscription Revenue” consists of the aggregate of: (a) “Behavioral Subscription Revenue”, the fees associated with subscriptions for our Behavioral offerings; and (b) “Clinical Subscription Revenue”, the fees associated with subscriptions for our Clinical offerings. In addition, “Other Revenue” consists of revenue from licensing, franchise fees with respect to commitment plans and royalties, publishing and other revenue. “Revenue” consists of the aggregate of Subscription Revenue and Other Revenue. “Incoming Subscribers” - “Subscribers” refer to Behavioral subscribers and Clinical subscribers who participate in recurring bill programs in Company-owned operations. The “Incoming Subscribers” metric reports Subscribers in Company-owned operations at a given period start. Recruitment and retention are key drivers for this metric. Management utilizes this metric to monitor changes in the subscriber base which directly impacts our revenue growth and trends. “End of Period Subscribers” - The “End of Period Subscribers” metric reports Subscribers in Company- owned operations at a given period end. Recruitment and retention are key drivers for this metric. Management utilizes this metric to monitor changes in the subscriber base which directly impacts our revenue growth and trends. “Monthly Subscription Revenue Per Average Subscriber” (“ARPU”) - The “Monthly Subscription Revenue Per Average Subscriber” metric reports the monthly fees associated with subscriptions for our offerings divided by the Average Subscriber for our businesses. Monthly Subscription Revenue for both quarterly and year-to-date periods for each respective business are calculated as Subscription Revenue divided by the number of months in the respective quarterly or year-to-date period. The “Average Subscriber” for quarterly periods for each respective business is the average of its Incoming Subscribers and End of Period Subscribers for the respective quarterly period. The “Average Subscriber” for year-to-date periods for each respective business is the average of its Incoming Subscribers at the beginning of the fiscal year and its End of Period Subscribers for each quarter end within the respective year-to-date period. Management utilizes this metric to consider revenue growth and trends on a per subscriber basis. 17
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Cautionary Note on Forward Look ing Statements This shareholder letter includes “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, any statements about the Company’s plans, strategies, objectives, initiatives, and prospects. The Company generally uses the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “aim” and similar expressions in this shareholder letter to identify forward-looking statements. The Company bases these forward-looking statements on its current views with respect to future events and financial performance. Actual results could differ materially from those projected in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: our recent emergence from bankruptcy, which could adversely affect our business and relationships and subjects us to risks and uncertainties; competition from other weight management and health and wellness industry participants or the development of more effective or more favorably perceived weight management methods; our failure to continue to retain and grow our subscriber base; our ability to be a leader in the rapidly evolving and increasingly competitive clinical weight management and weight loss market; our ability to continue to develop new, innovative services and products and enhance our existing services and products or the failure of our services, products or brands to continue to appeal to the market, or our ability to successfully expand into new channels of distribution or respond to consumer trends or sentiment; our ability to successfully implement strategic initiatives; the effectiveness and efficiency of our advertising and marketing programs across multiple platforms, including digital marketing and social media platforms; the impact on our reputation of actions taken by our franchisees, licensees, suppliers, affiliated provider entities, PCs’ healthcare professionals, and other partners; the recognition of asset impairment charges; the loss of key personnel, strategic partners or consultants or failure to effectively manage and motivate our workforce; our chief executive officer transition; our ability to successfully make acquisitions or enter into collaborations or joint ventures, including our ability to successfully integrate, operate or realize the anticipated benefits of such businesses; uncertainties related to a downturn in general economic conditions or consumer confidence, including as a result of the existing inflationary environment, changes in tariffs and escalating trade tensions, rising interest rates, the potential impact of political and social unrest and increased volatility in the credit and capital markets; the seasonal nature of our business; our failure to maintain effective internal control over financial reporting; the impact of events that impede accessing resources or discourage or impede people from gathering with others; the early termination by us of leases; the inability to renew certain of our licenses, or the inability to do so on terms that are favorable to us; the dependence of our payments system on third-party service providers; the impact of our exposure to variable rate indebtedness; the ability to generate sufficient cash to service our debt and satisfy our other liquidity requirements; uncertainties regarding the satisfactory operation of our technology or systems; the impact of data security breaches and other malicious acts or privacy concerns, including the costs of compliance with evolving privacy laws and regulations; our ability to successfully integrate and use artificial intelligence in our business; our ability to enforce our intellectual property rights both domestically and internationally, as well as the impact of our involvement in any claims related to intellectual property rights; the impact of existing and future laws and regulations; risks related to our exposure to extensive and complex healthcare laws and regulations; the outcomes of litigation or regulatory actions; risks and uncertainties associated with our international operations, including regulatory, economic, political, social, intellectual property, and foreign currency risks, which risks may be exacerbated as a result of war and terrorism; our ability to engage in share repurchases and pay cash dividends in the foreseeable future; risks related to the actions of activist shareholders and anti-takeover provisions in our articles of incorporation and bylaws; risks related to the actions of our shareholders and the exclusive forum provisions in our articles of incorporation; the possibility that we could fail to maintain the listing of our common stock on Nasdaq; and other risks and uncertainties, including those included in this shareholder letter and those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission (the “SEC”) (which are available on the SEC’s EDGAR database at www.sec.gov and via the Company’s website at corporate.ww.com). You should not put undue reliance on any forward-looking statements. You should understand that many important factors, including those discussed herein, could cause the Company’s results to differ materially from those expressed or suggested in any forward-looking statement. Except as required by law, the Company does not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of this shareholder letter or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company’s filings with the SEC (which are available on the SEC’s EDGAR database at www.sec.gov and via the Company’s website at corporate.ww.com). 18
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Reconciliation to GAAP Measures of Non-GAAP Financial Measures To supplement the Company’s consolidated results presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company has disclosed non-GAAP financial measures of operating results that exclude or adjust certain items. The Company presents in this letter non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization expenses and share-based compensation expense (“EBITDA”); and for each period presented, EBITDA adjusted, as applicable, for (a) gain on extinguishment of debt, (b) transaction costs related to strategic alternatives and the Company's Chapter 11 financial reorganization, (c) net restructuring charges associated with the previously disclosed 2025, 2024, and 2023 restructuring plans, (d) expenses in connection with the management of certain executive matters, and (e) other items such as the impact of foreign exchange gains and losses as indicated in the reconciliations below that management believes are not indicative of ongoing operations (“Adjusted EBITDA”). The Company also presents gross profit, gross margin, marketing expenses, selling, general and administrative expenses, and product development expenses on a non-GAAP basis that adjusts for similar items, as further indicated in the reconciliations included elsewhere in this shareholder letter. In addition, the Company presents certain of its financial results on a constant currency basis in addition to GAAP results. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company calculates constant currency by calculating current-year results using prior-year foreign currency exchange rates. Management believes these non-GAAP financial measures provide useful supplemental information for its and investors' evaluation of the Company's business performance and are useful for period-over-period comparisons of the performance of the Company's business. While management believes that these non-GAAP financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP . In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies. See "Reconciliation to GAAP Measures of Non-GAAP Financial Measures" in this shareholder letter and reconciliations, if any, included elsewhere in this shareholder letter for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures. A reconciliation of the forward-looking full year Adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of the Company’s control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results. 19
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Operational Statistics (In Thousands, Except Percentages and Monthly Subscription Revenue Per Average Subscriber) Unaudited Successor Three Months Ended Three Months Ended September 30, 2026 September 30, 2025 Variance Variance (Constant Currency) (Constant Currency) Incoming Subscribers (1) Incoming Behavioral Subscribers 2,291 Incoming Clinical Subscribers 197 In co ming Su b scr ib ers 2,489 End of Period Subscribers (2) End of Period Behavioral Subscribers 2,122 End of Period Clinical Subscribers 174 End o f P er i o d Su b scr ib ers 2,296 Monthly Subscription Revenue Per Average Subscriber (3) Monthly Behavioral Subscription Revenue Per Average Subscriber $ 17.21 Monthly Clinical Subscription Revenue Per Average Subscriber $ 68.25 M o nthly Su b scr ipti o n R e v e n ue P er Av er ag e Su b scr ib er $ 21.17 Note: Totals may not sum due to rounding. (1) The “Incoming Subscribers” metric reports WW Subscribers in Company-owned operations at a given period start. (2) The “End of Period Subscribers” metric reports WW Subscribers in Company-owned operations at a given period end. (3) The “Monthly Subscription Revenue Per Average Subscriber” metric reports the monthly fees associated with subscriptions for the Company's offerings divided by the Average Subscriber for its businesses. Monthly Subscription Revenue for quarterly periods for each respective business is calculated as Subscription Revenue divided by the number of months in the respective quarterly period. The “Average Subscriber” for quarterly periods for each respective business is the average of its Incoming Subscribers and End of Period Subscribers for the respective quarterly period. Revenue - Constant Currency (In Thousands, Except Percentages); Unaudited Successor Va r ian ce Three Months Ended Three Months Ended 2026 v s . 2026 Constant Currency September 30, 2026 September 30, 2025 2025 v s . 2025 GAAP Constant Currency GAAP Revenue (1) Behavioral Subscription Revenue (2) C linical Subscription Revenue ( 3 ) Subscription Revenue ( 4 ) O ther Revenue ( 5 ) Note: Totals may not sum due to rounding. (1) “Revenue” consists of the aggregate of Subscription Revenue and Other Revenue. (2) “Behavioral Subscription Revenue” consists of the fees associated with subscriptions for the Company’s Behavioral offerings. (3) “Clinical Subscription Revenue” consists of the fees associated with subscriptions for the Company’s Clinical offerings. (4) “Subscription Revenue” is the sum of Behavioral Subscription Revenue and Clinical Subscription Revenue. (5) “Other Revenue” consists of revenue from licensing, franchise fees with respect to commitment plans and royalties, publishing and other revenue. $ 152,901 $ 153,270 $ 172,091 (11.2%) (10.9%) $ 113,923 $ 114,286 $ 145,152 (21.5%) (21.3%) $ 38,037 $ 38,037 $ 25,777 47.6% 47.6% $ 151,960 $ 152,323 $ 170,929 (11.1%) (10.9%) $ 941 $ 947 $ 1,162 (19.0%) (18.5%) N/A 3,040 (24.6%) N/A N/A 127 55.7% N/A N/A 3,167 (21.4%) N/A N/A 2,862 (25.9%) N/A N/A 124 40.4% N/A N/A 2,986 (23.1%) N/A $ 17.26 $ 16.39 5.0% 5.3% $ 68.25 $ 68.52 (0.4%) (0.4%) $ 21.22 $ 18.52 14.3% 14.6% 20
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Net Income (Loss) to Adjusted EBITDA (In Thousands, Except Percentages); Unaudited Successor Net Income (Loss) Net Income (Loss) Margin Interest Taxes D epreciation and A mortization Expenses S hare-based Compensation Expense EB I TDA E B IT DA Margin Gain on Extinguishment of Debt ( 1 ) Transaction Costs ( 2 ) Restructuring Charges ( 3 ) Executive Related Costs ( 4 ) Other ( 5 ) Adj uste d EB I TDA A d j usted E B IT DA Margin Note: Totals may not sum due to rounding. (1) Gain on extinguishment of debt consists of the Company's voluntary prepayment in May 2026 of a portion of its New Term Loan Facility at 68.5% of par. (2) Certain non-recurring transaction costs related to strategic alternatives and the Company's Chapter 11 financial reorganization. (3) Restructuring charges consist of expenses associated with the reduction in headcount as a result of certain strategic re-alignments. Restructuring charges include the previously disclosed 2025 restructuring plan, the previously disclosed 2024 restructuring plan and the previously disclosed 2023 restructuring plan. (4) Expenses in connection with the management of certain executive matters. (5) Primarily consists of the impact of foreign currency on intercompany transactions. Q3 2026 Q2 2026 Q1 2026 Q4 2025 Q3 2025 $ 15,108 $ 14,074 $ (52,000) $ (5,833) $ (57,516) 9.9% 8.7% (30.9%) (3.6%) (33.4%) 10,861 11,588 11,475 11,767 12,052 10,692 (11,155) 10,823 (18,856) 53,157 13,050 25,916 25,886 26,308 25,493 705 732 686 604 — $ 50,416 $ 41,155 $ (3,130) $ 13, 99 0 $ 33,186 33.0% 25.4% (1.9%) 8.6% 19.3% — (4,612) — — — — — — (514) 9,126 — (156) 468 4,584 122 1,391 3,798 1,563 — — (147) (421) (737) (17) 342 $ 51,660 $ 3 9 ,764 $ (1,836) $ 18,043 $ 42,776 33.8% 24.5% (1.1%) 11.1% 24.9% 21
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Gross Profit, Marketing Expenses, Product Development Expenses, Selling, General & Administrative (SG&A) (In Thousands, Except Percentages); Unaudited Successor Q3 2026 Q3 2025 Product Development Expenses Selling, General and Administrative Expenses Product Development Expenses Selling, General and Administrative Expenses Gross Profit Marketing Expenses Gross Profit Marketing Expenses GAAP % of Revenue A dj us tm e nt s : Transaction Costs (1) D epreciation and A mortization Expenses Restructuring Charges (2) S hare- b ased Compensation Expense Executive Related Costs (3) T o tal A dj us tm e nt s A dj us t e d % of Revenue Currency A d j ustment C o n s tant C urre n c y % of Revenue A dj us t e d C o n s tant C urre n c y % of Revenue Note: Totals may not sum due to rounding. (1) Certain non-recurring transaction costs related to strategic alternatives and the Company's Chapter 11 financial reorganization. (2) Restructuring charges, from previously disclosed restructuring plans, consist of expenses associated with the reduction in headcount as a result of certain strategic re-alignments. (3) Expenses in connection with the management of certain executive matters. Successor $ 108,692 $ 33,094 71.1% 21.6% — — 5, 3 5 3 — — — 0 ( 2 0) — ( 8 5 6 ) 5,354 ( 875 ) $ 114,046 $ 32,219 74.6% 21.1% 334 4 0 $ 109,026 $ 33,134 71.1% 21.6% $ 114,380 $ 32,259 74.6% 21. 0 % $ 5,235 $ 33,849 $ 124,111 $ 48,404 $ 7,550 $ 60,122 3.4% 22.1% 72.1% 28.1% 4.4% 34.9% — — — — — ( 9 , 126 ) — ( 7 , 696 ) 5, 13 5 — (5 8 ) ( 2 0, 3 0 1 ) — — 23 — — ( 99 ) ( 99 ) (5 86 ) — — — — — (5 3 5) — — — — ( 99 ) ( 8,816 ) 5,158 — ( 58 ) ( 29,525 ) $ 5,136 $ 25,033 $ 129,269 $ 48,404 $ 7,492 $ 30,597 3.4% 16.4% 7 5 .1% 28.1% 4.4% 17.8% 2 19 N/A N/A N/A N/A $ 5,237 $ 33,868 N/A N/A N/A N/A 3.4% 22.1% N/A N/A N/A N/A $ 5,138 $ 25,052 N/A N/A N/A N/A 3.4% 16.3% N/A N/A N/A N/A Q2 2026 Q 1 2026 Q 4 2025 Gross Profit Marketing Expenses Product Development Expenses SG & A Gross Profit Marketing Expenses Product Development Expenses SG & A Gross Profit Marketing Expenses Product Development Expenses SG & A GAAP % of Revenue A dj us tm e nt s : Transaction Costs (1) D epreciation and A mortization Expenses Re str u ct u rin g C h ar ge s ( 2 ) S hare- b ased Compensation Expense Exe c u ti ve Rel at ed Costs ( 3 ) T o tal A dj us tm e nt s A dj us t e d % of Revenue Note: Totals may not sum due to rounding. (1) Certain non-recurring transaction costs related to strategic alternatives and the Company's Chapter 11 financial reorganization. (2) Restructuring charges consist of expenses associated with the reduction in headcount as a result of certain strategic re-alignments. Restructuring charges include the previously disclosed 2 0 2 5 restructuring plan, 2 0 2 4 restructuring plan, and 2 0 23 restructuring plan. (3) Expenses in connection with the management of certain executive matters. $ 114,142 $ 47,875 $ 6,441 $ 50,352 $ 118,672 $ 92,934 $ 8,093 $ 48,084 $ 114,095 $ 65,474 $ 8,872 $ 52,688 7 0 .3% 29. 5 % 4. 0 % 31. 0 % 7 0 . 5 % 55 .2% 4.8% 28.6% 7 0 .1% 4 0 .2% 5 .4% 32.4% — — — — — — — — — — — 5 14 5, 331 — — ( 2 0,5 8 5) 5, 18 0 — — ( 2 0, 7 0 6 ) 5, 3 50 — (5 9 ) ( 2 0, 899 ) — — — 1 5 6 ( 6 5) — — (5 33 ) 1 , 618 — — ( 2 , 966 ) 0 ( 16 0) ( 1 0 9 ) ( 463 ) 0 ( 141 ) ( 1 0 9 ) ( 436 ) — — — ( 6 0 4 ) — — — ( 3 , 798 ) — — — ( 1 ,5 63 ) — — — — 5,332 ( 160 ) ( 109 ) ( 24,690 ) 5,115 ( 141 ) ( 109 ) ( 23,238 ) 6,968 — ( 59 ) ( 23,955 ) $ 119,474 $ 47,715 $ 6,332 $ 25,662 $ 123,787 $ 92,793 $ 7,984 $ 24,846 $ 121,063 $ 65,474 $ 8,813 $ 28,733 73.6% 29.4% 3.9% 1 5 .8% 73.6% 55 .1% 4.7% 14.8% 74.4% 4 0 .2% 5 .4% 17.6% 22
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Consolidated Balance Sheets (In Thousands); Unaudited Successor September 30, 2026 December 31, 2025 ASSETS CURRENT ASSETS Cash and cash equivalents Restricted cash Receivables (net of allowances: September 30, 2026 - $2,132 and December 31, 2025 - $1,651) Prepaid income taxes Prepaid marketing and advertising Prepaid expenses and other current assets TOT AL CURRENT ASSETS Property and equipment, net O perating lease assets G oodwill O ther intangible assets, net Deferred income taxes O ther noncurrent assets TOT AL ASSETS L I A BI L I T I ES AN D E Q U I T Y CURRENT L I A BI L I T I ES Portion of operating lease liabilities due within one year A ccounts payable Salaries and wages payable A ccrued marketing and advertising A ccrued interest O ther accrued liabilities I ncome taxes payable Deferred revenue TOT AL CURRENT L I A BI L I T I ES L ong-term debt, net L ong-term operating lease liabilities Deferred income taxes O ther noncurrent liabilities TOT AL L I A BI L I T I ES E Q U I T Y Successor common stock, $0 par value ; 1,000,000 shares authori z ed ; 9 , 999 shares issued at September 30, 2026 and 9 , 99 2 shares issued at December 31, 2025 A ccumulated de fi cit A ccumulated other comprehensive (loss) income TOT AL E Q U I T Y TOT AL L I A BI L I T I ES AN D TOT AL E Q U I T Y $ 126,442 $ 160,279 5,796 6,298 11,977 16,378 3,728 8,097 2,050 9,275 11,489 13,277 161,482 213,604 6,316 8,115 1,803 2,933 199,858 200,135 446,794 490,664 16,209 16,482 14,871 14,825 $ 84 7 ,333 $ 9 46, 75 8 $ 918 $ 1,260 19,644 9,212 20,100 34,375 8,055 22,985 892 1,084 18,911 23,049 1,644 6,006 21,943 28,565 9 2,10 7 126, 5 36 423,970 465,466 1,159 1,893 36,253 34,021 576 771 55 4,06 5 628,68 7 380,136 378,777 ( 84,913 ) ( 62,095 ) ( 1,955 ) 1,389 2 9 3,268 318,0 7 1 $ 84 7 ,333 $ 9 46, 75 8 23
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Consolidated Statements of Operations (In Thousands, Except Per Share Amounts); Unaudited Successor Three Months Ended Three Months Ended September 30, 2026 September 30, 2025 Subscription revenue, net (1) Other revenue, net (2) Revenue, net Cost of subscription revenue (3) Cost of other revenue Cost of revenue G ross p ro fi t M ar k eting expenses P roduct development expenses Selling, general and administrative expenses Op er a t i n g i nco m e I nterest expense Other (income) expense, net I nco m e (l oss ) b efore i nco m e t ax es P rovision for income taxes N et i nco m e (l oss ) Ea rn i n g s ( net l oss ) p er s ha re Basic D iluted W e igh te d a ver ag e co mm on s ha res outst a n d i n g Basic D iluted Note: Totals may not sum due to rounding. (1) “Subscription revenue, net” consists of the aggregate of: (a) net “Behavioral Subscription Revenue”, the fees associated with subscriptions for the Company’s Behavioral offerings; and (b) net “Clinical Subscription Revenue”, the fees associated with subscriptions for the Company’s Clinical offerings. (2) “Other revenue, net” consists of revenue from licensing, franchise fees with respect to commitment plans and royalties, publishing and other revenue. (3) “Cost of subscription revenue” consists of cost of revenue and operating expenses for the Company's Behavioral and Clinical services. $ 151,960 $ 170,929 941 1,162 152,901 172,091 44,144 47,908 65 72 44,209 47,9 8 0 10 8 , 6 92 124,111 33 ,094 48,404 5,2 3 5 7,550 33 ,849 60,122 36 ,514 8 ,0 3 5 10,861 12,052 ( 147 ) 3 42 25, 8 00 ( 4, 3 59 ) 10,692 5 3 ,157 $ 15,10 8 $ ( 57,51 6) $ 1 . 51 $ ( 5 . 76 ) $ 1 . 51 $ ( 5 . 76 ) 9,999 9,987 10,021 9,987 24
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Consolidated Statements of Cash Flows (In Thousands); Unaudited Successor Nine Months Ended Period from September 30, 2026 June 25, 2025 through September 30, 2025 Operating activities: Net (loss) income Adjustments to reconcile net (loss) income to cash provided by (used for) operating activities: Depreciation and amortization Amortization of deferred financing costs and debt (premium) discount, net I mpairment of franchise rights ac q uired I mpairment of long - lived assets S hare - based compensation e x pense Deferred ta x provision Allo w ance for doubtful accounts F oreign currency e x change rate (gain) loss Non - cash reorganization items, net G ain on e x tinguishment of debt C hanges in cash due to: R eceivables P repaid e x penses Accounts payable Accrued liabilities Deferred revenue O ther long - term assets and liabilities, net I ncome ta x es C as h provided by ( used f or ) operating activities I nvesting activities: C apital e x penditures C apitalized soft w are and w ebsite development e x penditures C ash paid for ac q uisitions, net of cash ac q uired O ther items, net C as h used f or investing activities F inancing activities: B orro w ings on revolving credit facility F inancing costs P ayments on long - term debt T a x es paid related to net share se tt lement of e q uity a w ards C ash paid for ac q uisitions C as h ( used f or ) provided by fi nancing activities Eff ect of e x change rate changes on cash and cash e q uivalents and restricted cash N et ( decrease ) increase in cas h and cas h e q uiva l ents and restricted cas h C ash and cash e q uivalents and restricted cash, beginning of period C as h and cas h e q uiva l ents and restricted cas h , end o f period Predecessor Period from December 29, 2024 through June 24, 2025 $ (22,818) $ (56,262) $ 1,118,103 64,851 27,174 14,201 (76) (26) 1,766 — — 27,54 9 3 — 9 7 1,324 — 4,032 1, 9 70 1,064 26,232 48 (513) (1,131) (1,206) 1,2 9 8 6,717 — — (1,176,532) (4,612) — — 4,16 9 (2,245) 4,280 13,537 3 9 , 9 34 (31,281) 10,466 1,454 (8,237) (33,680) (14,623) 15,084 (6,3 9 7) (2,220) (2, 9 14) (1 9 1) (11) (2,234) (4,34 9 ) 13,3 9 4 (30,155) 23,039 8,418 (34,423) — (6) (87) (18,8 99 ) (3,678) (6,253) — (1,020) — — (3) (1) (18,899) (4,707) (6,341) — — 171,341 — — (1,2 9 8) (36,808) — — — — (145) — — (16,000) (36,808) — 1 5 3,898 (1,671) 235 3, 9 66 (34,339) 3,946 117,100 166,577 173,620 56,520 $ 132,238 $ 177, 5 66 $ 173,620 25
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Contact Information Investors Anna Kate Heller WeightWatchers@icrinc.com Media Melissa Garbayo melissa.garbayo@ww.com 26