From $6.7B to $100M, $WW Attempts a High-Risk Turnaround
Weight Watchers is possibly the most famous weight loss brand in the world! $WW International, Inc.(WW)$
They have been providing weight loss programs for over 60 years, peaking at a $6.7B market cap in 2018.
However, since then, the company has not only lost weight for its customers, but it has lost 99% of its market cap, today trading for just barely above $100M!
The first trouble started when, in the 2010s, easy-to-use weight loss and calorie-counting apps began stealing market share from WW’s flagship point-based and in-person weight loss coaching programs.
Then, the GLP1 boom of the 2020s killed the company completely.
There was little interest in WW’s weight loss programs if customers could just take highly effective and safe medical treatments to lose weight. As revenues declined, profits evaporated, and the business couldn’t deal with the massive weight of interest payments from their debt saddled balance sheet.
So last May, the company filed for bankruptcy to reorganize the business and reduce debt.
Now, WW is out of bankruptcy with around $460M of debt, declining revenues, and no profits.
So why would an investor be interested in this business?
Because WW is pivoting away from its legacy weight loss businesses towards becoming a digital health care platform.
The strategy is simple, milk the core legacy business for all it can give, and reinvest that into the new GLP1 success subscription and new healthcare emerging verticals. There is little trust in the market that this pivot will succeed, so WW trades for just 1x its 2026 ADJ EBITDA guidance of $105-115M.
If they are successful, investing now at a $100M market cap could provide investors with a 10x opportunity.
In this report, I will explain how WW plans to transform its business and why I see the stock as a compelling high-risk-high-reward opportunity.
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