Company: WW
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029511
Chunk: 291

Company: WW INTERNATIONAL, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 291
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venues following our acquisition of Sequence during the second quarter of fiscal 2023.

The decrease in Total Paid Weeks for fiscal 2024 versus the prior year was driven primarily by Behavioral recruitment declines.

Liquidity and Capital Resources

We have experienced significant disruption and competitive pressures, including shifts in consumer behavior in the weight loss category, a rapid proliferation of GLP-1 and other medications available as weight-loss options, and significantly increased competition from new entrants. These factors have negatively impacted our Behavioral business. While the Clinical business is growing, it has not yet been able to offset the declines in the Behavioral business, resulting in decreased revenue overall and decreased cash flows from operations. Our management has continued to execute certain cost-savings initiatives, including the 2024 plan, to proactively manage our liquidity. If the cost-saving initiatives do not provide the expected net benefit, our liquidity, results of operations and financial position may be materially adversely impacted.

We have recurring net losses. During fiscal 2024, we recorded an operating loss of $236.2 million and a net loss of $345.7 million. Operating loss included $315.0 million of franchise rights acquired impairments that were non-cash. Our annual revenues decreased from $889.6 million for fiscal 2023 to $785.9 million for fiscal 2024, in which the closure of the consumer products business resulted in a revenue decline of $55.0 million versus the prior year. Cash used for operating activities for fiscal 2024 was $16.8 million, which included $96.8 million of interest payments and $30.7 million of severance payments. We have a total deficit of $1,114.4 million at December 28, 2024. In addition, we have $1,430.6 million of long-term debt, net at December 28, 2024 and incurred $109.0 million in interest expense for fiscal 2024.

Our principal sources of liquidity are cash and cash equivalents, cash flows from operations and proceeds from the January 2025 borrowings under our Revolving Credit Facility (as defined below). Our primary cash needs for the twelve months following the issuance date of our financial statements contained in this Annual Report on Form 10-K (“issuance date”) are funding our operations and global strategic initiatives, meeting debt service requirements and other financing commitments. We believe that future cash flows from operations, unrestricted cash on hand of $53.0 million at December 28, 2024 (of