• WW plans to prepay up to $40 million outstanding loan and expects to generate cash through the year.
• The company reports earnings next week; Fiscal AI has polled a Q1 loss per share estimate of $2.05 on revenue of $158.5 million. 
• Full-year revenue is still expected to be $620 million to $635 million; adjusted EBITDA is expected to be around $105 million to $115 million.

Shares of WW International, Inc. (WW) are on track to record their best single-day gains since emerging from Chapter 11 bankruptcy in June last year, after the weight loss and management company shared plans to prepay its debt. 

The announcement comes ahead of its first-quarter (Q1) earnings report next week.

The company said on Monday it will utilize up to $40 million in cash to prepay and reduce the principal amount of its outstanding term loan. Post-prepayment, WW expects to generate cash through the remainder of the year due to “peak season marketing.”

“As we continue to execute against our strategic priorities, we remain focused on maintaining a strengthened capital structure, supported by durable cash generation, to fund continued investments in our integrated weight health ecosystem and drive sustainable, profitable growth,” said CFO Felicia DellaFortuna.

Q1 Expectations

For Q1, Fiscal AI has polled a loss per share estimate of $2.05 on revenue of $158.5 million. 

The company on Monday also reaffirmed its expectations for Q1-end subscribers of about 2.65 million, including about 200,000 clinical subscribers. 

Full-year revenue is still expected to be $620 million to $635 million, with the midpoint below the $630.7 million estimate, and adjusted earnings before taxes, depreciation, and amortization are expected to be around $105 million to $115 million, above the $107.3 million estimate at the midpoint.

Last week, Morgan Stanley lowered WW's price target to $21 from $34.50 and maintained an ‘Equal Weight’ rating, according to TheFly. 

Leadership Struggles

Earlier this month, the company saw the abrupt departure of its CEO, Tara Comonte, little over a year after taking the top job. 

Former Shake Shack boss Comonte became WW CEO permanently in February 2025, following an interim period that began in September 2024. At that time, she replaced Sima Sistani, who was ousted by the company.

The company’s board is still on the lookout for a CEO and has hired an executive search firm to assist it with the process.

How Did Retail Traders React?

On Stocktwits, retail sentiment about WW turned ‘extremely bullish’ from ‘bullish,’ while messaging volumes more than tripled over the last 24 hours.

One user on the platform said, “Balance sheet derisking is exactly the kind of catalyst” a stock like WW needs.

WW stock has lost nearly two-thirds of its value year-to-date.

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