Personal wellness company WeightWatchers (NASDAQ: WW) reported Q2 CY2025 results topping the market’s revenue expectations, but sales fell by 6.4% year on year to $189.2 million. On the other hand, the company’s full-year revenue guidance of $692.5 million at the midpoint came in 1.1% below analysts’ estimates. Its GAAP profit of $14.68 per share increased from $0.29 in the same quarter last year.

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“The need for effective and sustainable support in weight health has never been more important, and no company is better positioned to meet that need than WeightWatchers,” said Tara Comonte, CEO of WeightWatchers.

Company Overview

Known by many for its old cable television commercials, WeightWatchers (NASDAQ: WW) is a wellness company offering a range of products and services promoting weight loss and healthy habits.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. WeightWatchers’s demand was weak over the last five years as its sales fell at a 11% annual rate. This was below our standards and is a sign of poor business quality.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. WeightWatchers’s annualized revenue declines of 10% over the last two years align with its five-year trend, suggesting its demand has consistently shrunk.

We can better understand the company’s revenue dynamics by analyzing its number of members, which reached 3.2 million in the latest quarter. Over the last two years, WeightWatchers’s members averaged 5.6% year-on-year declines. Because this number is higher than its revenue growth during the same period, we can see the company’s monetization has fallen.

This quarter, WeightWatchers’s revenue fell by 6.4% year on year to $189.2 million but beat Wall Street’s estimates by 6.2%.

Looking ahead, sell-side analysts expect revenue to decline by 8.6% over the next 12 months, similar to its two-year rate. Although this projection is better than its two-year trend, it’s hard to get excited about a company that is struggling with demand.

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Operating Margin

This quarter, WeightWatchers generated an operating margin profit margin of 23.3%, up 4.5 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses.

Key Takeaways from WeightWatchers’s Q2 Results

It was great to see WeightWatchers’s full-year EBITDA guidance top analysts’ expectations. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its full-year revenue guidance slightly missed. Overall, we think this was a decent quarter with some key metrics above expectations. The stock traded up 3.6% to $39.50 immediately after reporting.

WeightWatchers had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.