Total End of Period Subscribers of 2.7 million; End of Period Clinical Subscribers of 197 thousand, up 46% year-over-year
Revenue of
Reaffirms Full Year 2026 Financial Guidance
Announces Fully Subscribed Debt Prepayment Solicitation as Part of Actions Expected to Reduce Debt by
“We remain confident in our strategy to build the industry-leading weight health platform. Our focus is on executing high-impact initiatives that drive Clinical growth and stabilize our Behavioral business,” said
“We are pleased with our Q1 results. Adjusted Gross Margin2 remains near record highs as we continue to drive operational efficiencies across our portfolio of businesses,” said
Q1 Business Updates
- Q1 2026 Clinical Subscription Revenue grew 32% year-over-year and End of Period Clinical Subscribers grew 46% year-over-year, despite lapping significant prior year growth in Q1 2025 from the Company’s former compounded semaglutide offering.
- Core+ represented 537 thousand of End of Period Subscribers at the end of Q1 2026, which increased 6% from 505 thousand End of Period Subscribers at the end of Q1 2025.
- Q1 Monthly Subscription Revenue Per Average Subscriber (ARPU) increased 13% year-over-year, reflecting a continued mix shift towards the Company’s higher ARPU Med+ and Core+ membership tiers. This mix shift partially offset secular headwinds in the Company’s Core membership tier that drove a 10% decrease in Revenue year-over-year.
- Q1 Gross Margin was 70.5%. Q1 Adjusted Gross Margin2 was 73.6%, which remained near record highs, despite an accelerating mix shift towards Clinical, as margin profiles improved through structural actions and operational efficiencies.
- Q1 Net Loss was
$52.0 million , which reflects higher depreciation and amortization related to Fresh Start Accounting1. Q1 Adjusted EBITDA2 was a loss of$1.8 million reflecting marketing investment in peak season.
Balance Sheet and Liquidity Updates
- Cash and Cash Equivalents balance as of
March 31, 2026 was$121 million . - In Q2 2026, the Company expects to pay
$37 million in cash to prepay and reduce the principal amount of its outstanding term loan. The prepayment will be comprised of the following two components:- In
June 2026 ,$27 million in aggregate principal amount of prepayment from the annual cash sweep; and - In
May 2026 ,$10 million as part of the previously announced voluntary solicitation, which was fully subscribed at 68.5% of par.
- In
The Company expects these actions to reduce the aggregate principal amount of its outstanding term loan by
Fiscal 2026 Guidance
The Company reaffirms previously provided full year fiscal 2026 guidance.
- Revenue guidance of
$620 million to$635 million . - Adjusted EBITDA2 guidance of
$105 million to$115 million .
First Quarter 2026 Conference Call and Webcast
The Company has scheduled a conference call today at
1Fresh Start Accounting and Predecessor and Successor Periods
In connection with the Company’s emergence from its financial reorganization process on
2Statement regarding Non-GAAP Financial Measures
To supplement the Company’s consolidated results presented in accordance with accounting principles generally accepted in
As exchange rates are an important factor in understanding period-to-period comparisons, the Company believes in certain cases the presentation of results on a constant currency basis in addition to reported results helps improve investors’ ability to understand the Company’s operating results and evaluate the Company’s performance in comparison to prior periods. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company uses results on a constant currency basis as one measure to evaluate the Company’s performance. In this press release, the Company calculates constant currency by calculating current-year results using prior-year foreign currency exchange rates. The Company generally refers to such amounts calculated on a constant currency basis as excluding or adjusting for the impact of foreign currency or being on a constant currency basis. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP and are not meant to be considered in isolation. Results on a constant currency basis, as the Company presents them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.
Management believes these non-GAAP financial measures provide useful supplemental information to investors regarding the performance of the Company’s business and are useful for period-over-period comparisons of the performance of the Company’s business. While the Company 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 of Non-GAAP Financial Measures” in this release and reconciliations, if any, included elsewhere in this release 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.
3The interest rate in effect for the term loan as of
Definitions
“Behavioral” business refers to providing subscriptions to the Company’s digital product offerings with the option to add on unlimited access to the Company’s workshops.
“Clinical” business refers to providing subscriptions to the Company’s clinical product offerings provided by
“Revenue” - “Subscription Revenue” consists of the aggregate of: (a) “Behavioral Subscription Revenue”, the fees associated with subscriptions for the Company’s Behavioral offerings; and (b) “Clinical Subscription Revenue”, the fees associated with subscriptions for the Company’s 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 the Company’s 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 the Company’s 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 the Company’s offerings divided by the Average Subscriber for its 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.
About
This news release 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 news release 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: the Company's recent emergence from bankruptcy, which could adversely affect its 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; the Company's failure to continue to retain and grow its subscriber base; the Company's ability to be a leader in the rapidly evolving and increasingly competitive clinical weight management and weight loss market; the Company's ability to continue to develop new, innovative services and products and enhance its existing services and products or the failure of its services, products or brands to continue to appeal to the market, or its ability to successfully expand into new channels of distribution or respond to consumer trends or sentiment; the Company's ability to successfully implement strategic initiatives; the effectiveness and efficiency of its advertising and marketing programs, including the strength of its social media presence; the impact on the Company's reputation of actions taken by its 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 the Company's workforce; the Company’s chief executive officer transition, and its ability to appoint a new chief executive officer with the required level of experience and expertise in a timely manner; the Company's ability to successfully make acquisitions or enter into collaborations or joint ventures, including its 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 the Company's business; the Company's 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 the Company's licenses, or the inability to do so on terms that are favorable to us; the dependence of the Company's payments system on third-party service providers; the impact of the Company's exposure to variable rate indebtedness; the ability to generate sufficient cash to service the Company's debt and satisfy its other liquidity requirements; uncertainties regarding the satisfactory operation of the Company's 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; the Company's ability to successfully integrate and use artificial intelligence in its business; the Company's ability to enforce its intellectual property rights both domestically and internationally, as well as the impact of its involvement in any claims related to intellectual property rights; the impact of existing and future laws and regulations; risks related to the Company's exposure to extensive and complex healthcare laws and regulations; the outcomes of litigation or regulatory actions; risks and uncertainties associated with the Company's 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; the Company's 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 the Company's articles of incorporation and bylaws; risks related to the actions of the Company's shareholders and the exclusive forum provisions in its articles of incorporation; the possibility that the Company could fail to maintain the listing of the Company's common stock on Nasdaq; and other risks and uncertainties, including those included in this press release and those detailed from time to time in the Company’s 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 news release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company’s filings with the
For investor inquiries, please contact:
WeightWatchers@icrinc.com
For media inquiries, please contact:
WW@hunt-gather.com
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (IN THOUSANDS) | ||||||||
| UNAUDITED | ||||||||
| Successor | ||||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 120,870 | $ | 160,279 | ||||
| Restricted cash | 5,797 | 6,298 | ||||||
| Receivables (net of allowances: | 16,856 | 16,378 | ||||||
| Prepaid income taxes | 3,325 | 8,097 | ||||||
| Prepaid marketing and advertising | 5,150 | 9,275 | ||||||
| Prepaid expenses and other current assets | 16,347 | 13,277 | ||||||
| TOTAL CURRENT ASSETS | 168,345 | 213,604 | ||||||
| Property and equipment, net | 7,485 | 8,115 | ||||||
| Operating lease assets | 2,549 | 2,933 | ||||||
| 200,000 | 200,135 | |||||||
| Other intangible assets, net | 471,528 | 490,664 | ||||||
| Deferred income taxes | 16,254 | 16,482 | ||||||
| Other noncurrent assets | 14,910 | 14,825 | ||||||
| TOTAL ASSETS | $ | 881,071 | $ | 946,758 | ||||
| LIABILITIES AND EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Portion of long-term debt due within one year, net | $ | 26,808 | $ | — | ||||
| Portion of operating lease liabilities due within one year | 1,183 | 1,260 | ||||||
| Accounts payable | 17,077 | 9,212 | ||||||
| Salaries and wages payable | 20,364 | 34,375 | ||||||
| Accrued marketing and advertising | 15,875 | 22,985 | ||||||
| Accrued interest | 1,086 | 1,084 | ||||||
| Other accrued liabilities | 21,641 | 23,049 | ||||||
| Income taxes payable | 10,311 | 6,006 | ||||||
| Deferred revenue | 26,749 | 28,565 | ||||||
| TOTAL CURRENT LIABILITIES | 141,094 | 126,536 | ||||||
| Long-term debt, net | 438,632 | 465,466 | ||||||
| Long-term operating lease liabilities | 1,571 | 1,893 | ||||||
| Deferred income taxes | 33,705 | 34,021 | ||||||
| Other noncurrent liabilities | 498 | 771 | ||||||
| TOTAL LIABILITIES | 615,500 | 628,687 | ||||||
| EQUITY | ||||||||
| Successor common stock, | 379,306 | 378,777 | ||||||
| Accumulated deficit | (114,095 | ) | (62,095 | ) | ||||
| Accumulated other comprehensive income | 360 | 1,389 | ||||||
| TOTAL EQUITY | 265,571 | 318,071 | ||||||
| TOTAL LIABILITIES AND TOTAL EQUITY | $ | 881,071 | $ | 946,758 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
| (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) | |||||||||
| UNAUDITED | |||||||||
| Successor | Predecessor | ||||||||
| Three Months Ended | Three Months Ended | ||||||||
| Subscription revenue, net(1) | $ | 167,357 | $ | 185,180 | |||||
| Other revenue, net(2) | 904 | 1,391 | |||||||
| Revenue, net | 168,261 | 186,571 | |||||||
| Cost of subscription revenue(3) | 49,445 | 53,587 | |||||||
| Cost of other revenue | 144 | 108 | |||||||
| Cost of revenue | 49,589 | 53,695 | |||||||
| Gross profit | 118,672 | 132,876 | |||||||
| Marketing expenses | 92,934 | 78,778 | |||||||
| Product development expenses | 8,093 | 11,121 | |||||||
| Selling, general and administrative expenses | 48,084 | 35,629 | |||||||
| Franchise rights acquired impairments | — | 27,549 | |||||||
| Operating loss | (30,439 | ) | (20,201 | ) | |||||
| Interest expense | 11,475 | 27,603 | |||||||
| Other (income) expense, net | (737 | ) | 2,206 | ||||||
| Loss before income taxes | (41,177 | ) | (50,010 | ) | |||||
| Provision for income taxes | 10,823 | 22,575 | |||||||
| Net loss | $ | (52,000 | ) | $ | (72,585 | ) | |||
| Net loss per share | |||||||||
| Basic | $ | (5.20 | ) | $ | (0.91 | ) | |||
| Diluted | $ | (5.20 | ) | $ | (0.91 | ) | |||
| Weighted average common shares outstanding | |||||||||
| Basic | 9,996 | 80,129 | |||||||
| Diluted | 9,996 | 80,129 | |||||||
| 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. | |||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| (IN THOUSANDS) | |||||||||
| UNAUDITED | |||||||||
| Successor | Predecessor | ||||||||
| Three Months Ended | Three Months Ended | ||||||||
| Operating activities: | |||||||||
| Net loss | $ | (52,000 | ) | $ | (72,585 | ) | |||
| Adjustments to reconcile net loss to cash (used for) provided by operating activities: | |||||||||
| Depreciation and amortization | 25,886 | 6,914 | |||||||
| Amortization of deferred financing costs and debt (premium) discount, net | (26 | ) | 1,254 | ||||||
| Impairment of franchise rights acquired | — | 27,549 | |||||||
| Impairment of intangible and long-lived assets | 3 | 94 | |||||||
| Share-based compensation expense | 391 | 860 | |||||||
| Deferred tax benefit | (312 | ) | (2,529 | ) | |||||
| Allowance for doubtful accounts | 100 | 84 | |||||||
| Foreign currency exchange rate (gain) loss | (738 | ) | 2,238 | ||||||
| Changes in cash due to: | |||||||||
| Receivables | (688 | ) | 761 | ||||||
| Prepaid expenses | 5,835 | 5,946 | |||||||
| Accounts payable | 7,556 | 19,435 | |||||||
| Accrued liabilities | (21,854 | ) | 8,785 | ||||||
| Deferred revenue | (1,722 | ) | (154 | ) | |||||
| Other long term assets and liabilities, net | (302 | ) | (107 | ) | |||||
| Income taxes | 4,324 | 16,453 | |||||||
| Cash (used for) provided by operating activities | (33,547 | ) | 14,998 | ||||||
| Investing activities: | |||||||||
| Capital expenditures | — | (5 | ) | ||||||
| Capitalized software and website development expenditures | (5,797 | ) | (3,170 | ) | |||||
| Cash used for investing activities | (5,797 | ) | (3,175 | ) | |||||
| Financing activities: | |||||||||
| Borrowings on revolving credit facility | — | 171,341 | |||||||
| Taxes paid related to net share settlement of equity awards | — | (93 | ) | ||||||
| Cash provided by financing activities | — | 171,248 | |||||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (566 | ) | 1,529 | ||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | (39,910 | ) | 184,600 | ||||||
| Cash and cash equivalents and restricted cash, beginning of period | 166,577 | 56,520 | |||||||
| Cash and cash equivalents and restricted cash, end of period | $ | 126,667 | $ | 241,120 | |||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES) | |||||||||||||||
| UNAUDITED | |||||||||||||||
| Variance | |||||||||||||||
| Successor | Predecessor | 2026 | |||||||||||||
| Three Months Ended | Three Months Ended | 2026 | Constant Currency | ||||||||||||
| vs | vs | ||||||||||||||
| GAAP | Constant Currency | GAAP | 2025 | 2025 | |||||||||||
| Selected Financial Data | |||||||||||||||
| Revenue(1) | $ | 168,261 | $ | 164,007 | $ | 186,571 | (9.8 | %) | (12.1 | %) | |||||
| Behavioral Subscription Revenue(2) | $ | 128,524 | $ | 124,317 | $ | 155,723 | (17.5 | %) | (20.2 | %) | |||||
| Clinical Subscription Revenue(3) | $ | 38,833 | $ | 38,833 | $ | 29,457 | 31.8 | % | 31.8 | % | |||||
| Subscription Revenue(4) | $ | 167,357 | $ | 163,150 | $ | 185,180 | (9.6 | %) | (11.9 | %) | |||||
| Other Revenue(5) | $ | 904 | $ | 858 | $ | 1,391 | (35.0 | %) | (38.3 | %) | |||||
| 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. | |||||||||||||||
| OPERATIONAL STATISTICS | |||||||||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES AND MONTHLY SUBSCRIPTION REVENUE PER AVERAGE SUBSCRIBER) | |||||||||||||||
| UNAUDITED | |||||||||||||||
| Successor | Predecessor | ||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||
| Variance | Variance | ||||||||||||||
| (Constant Currency) | (Constant Currency) | ||||||||||||||
| Incoming Subscribers(1) | |||||||||||||||
| Incoming Behavioral Subscribers | 2,631 | N/A | 3,244 | (18.9 | %) | N/A | |||||||||
| Incoming Clinical Subscribers | 130 | N/A | 92 | 41.9 | % | N/A | |||||||||
| Incoming Subscribers | 2,761 | N/A | 3,336 | (17.2 | %) | N/A | |||||||||
| End of Period Subscribers(2) | |||||||||||||||
| End of Period Behavioral Subscribers | 2,463 | N/A | 3,299 | (25.4 | %) | N/A | |||||||||
| End of Period Clinical Subscribers | 197 | N/A | 135 | 45.9 | % | N/A | |||||||||
| End of Period Subscribers | 2,659 | N/A | 3,434 | (22.6 | %) | N/A | |||||||||
| Monthly Subscription Revenue Per Average Subscriber(3) | |||||||||||||||
| Monthly Behavioral Subscription Revenue Per Average Subscriber | $ | 16.82 | $ | 16.27 | $ | 15.87 | 6.0 | % | 2.6 | % | |||||
| Monthly Clinical Subscription Revenue Per Average Subscriber | $ | 79.23 | $ | 79.23 | $ | 86.70 | (8.6 | %) | (8.6 | %) | |||||
| Monthly Subscription Revenue Per Average Subscriber | $ | 20.59 | $ | 20.07 | $ | 18.24 | 12.9 | % | 10.0 | % | |||||
| 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. | |||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES) | |||||||||||||||||||||||||||||||||
| UNAUDITED | |||||||||||||||||||||||||||||||||
| Successor | Predecessor | ||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||
| Selling, | Selling, | ||||||||||||||||||||||||||||||||
| Product | General, and | Product | General, and | ||||||||||||||||||||||||||||||
| Gross | Marketing | Development | Administrative | Gross | Marketing | Development | Administrative | ||||||||||||||||||||||||||
| Profit | Expenses | Expenses | Expenses | Profit | Expenses | Expenses | Expenses | ||||||||||||||||||||||||||
| GAAP | $ | 118,672 | $ | 92,934 | $ | 8,093 | $ | 48,084 | $ | 132,876 | $ | 78,778 | $ | 11,121 | $ | 35,629 | |||||||||||||||||
| % of Revenue | 70.5 | % | 55.2 | % | 4.8 | % | 28.6 | % | 71.2 | % | 42.2 | % | 6.0 | % | 19.1 | % | |||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||
| Transaction Costs(1) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (10,823 | ) | ||||||||||||||||
| Depreciation and Amortization Expenses | 5,180 | — | — | (20,706 | ) | 4,500 | — | (61 | ) | (2,354 | ) | ||||||||||||||||||||||
| Restructuring Charges(2) | (65 | ) | — | — | (533 | ) | (384 | ) | — | — | (1,356 | ) | |||||||||||||||||||||
| Share-based Compensation Expense | 0 | (141 | ) | (109 | ) | (436 | ) | — | — | — | (860 | ) | |||||||||||||||||||||
| Non-CEO Executive Separation Expenses(3) | — | — | — | (1,563 | ) | — | — | — | — | ||||||||||||||||||||||||
| Total Adjustments | $ | 5,115 | $ | (141 | ) | $ | (109 | ) | $ | (23,238 | ) | $ | 4,116 | $ | — | $ | (61 | ) | $ | (15,394 | ) | ||||||||||||
| Adjusted | $ | 123,787 | $ | 92,793 | $ | 7,984 | $ | 24,846 | $ | 136,992 | $ | 78,778 | $ | 11,060 | $ | 20,235 | |||||||||||||||||
| % of Revenue | 73.6 | % | 55.1 | % | 4.7 | % | 14.8 | % | 73.4 | % | 42.2 | % | 5.9 | % | 10.8 | % | |||||||||||||||||
| Currency Adjustment | (3,690 | ) | (959 | ) | — | (301 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||||||||
| Constant Currency | $ | 114,982 | $ | 91,975 | $ | 8,093 | $ | 47,783 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
| % of Revenue | 70.1 | % | 56.1 | % | 4.9 | % | 29.1 | % | N/A | N/A | N/A | N/A | |||||||||||||||||||||
| Adjusted Constant Currency | $ | 120,097 | $ | 91,834 | $ | 7,984 | $ | 24,546 | N/A | N/A | N/A | N/A | |||||||||||||||||||||
| % of Revenue | 73.2 | % | 56.0 | % | 4.9 | % | 15.0 | % | N/A | N/A | N/A | N/A | |||||||||||||||||||||
| 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 2025 restructuring plan, the previously disclosed 2024 restructuring plan and the previously disclosed 2023 restructuring plan. | |||||||||||||||||||||||||||||||||
| (3)Certain non-recurring expenses in connection with the separation from the Company of a non-Chief Executive Officer executive. | |||||||||||||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||
| (IN THOUSANDS, EXCEPT PERCENTAGES) | |||||||||
| UNAUDITED | |||||||||
| Successor | Predecessor | ||||||||
| Three Months Ended | Three Months Ended | ||||||||
| Net Loss | $ | (52,000 | ) | $ | (72,585 | ) | |||
| Net Loss Margin | (30.9 | %) | (38.9 | %) | |||||
| Interest | 11,475 | 27,603 | |||||||
| Taxes | 10,823 | 22,575 | |||||||
| Depreciation and Amortization Expenses | 25,886 | 6,914 | |||||||
| Share-based Compensation Expense | 686 | 860 | |||||||
| EBITDA | $ | (3,130 | ) | $ | (14,633 | ) | |||
| EBITDA Margin | (1.9 | %) | (7.8 | %) | |||||
| Franchise Rights Acquired Impairments(1) | — | 27,549 | |||||||
| Transaction Costs(2) | — | 10,823 | |||||||
| Restructuring Charges(3) | 468 | 972 | |||||||
| Non-CEO Executive Separation Expenses(4) | 1,563 | — | |||||||
| Other(5) | (737 | ) | 2,206 | ||||||
| Adjusted EBITDA | $ | (1,836 | ) | $ | 26,917 | ||||
| Adjusted EBITDA Margin | (1.1 | %) | 14.4 | % | |||||
| Note: Totals may not sum due to rounding. | |||||||||
| (1)The Company's franchise rights acquired impairment charge related to its | |||||||||
| (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)Certain non-recurring expenses in connection with the separation from the Company of a non-Chief Executive Officer executive. | |||||||||
| (5)Primarily consists of the impact of foreign exchange gains and losses. | |||||||||
