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Peloton Stock Plummets 25% After Earnings
Peloton's revenue fell 3% to $656.5 million with paid subscriptions declining 7%, while the company improved adjusted EBITDA by 39% amid cost cuts and layoffs.
- On Thursday, Peloton Interactive Inc. reported holiday-quarter revenue of $657 million, missing Wall Street analysts' expectations of $674 million and falling short of internal sales targets.
- Amid a post-pandemic shift, higher-priced AI-driven hardware failed to prompt upgrades, and over 100,000 subscribers left as gyms reopened.
- Profitability metrics indicate hardware sales were $244 million and subscriptions $413 million, both below StreetAccount expectations, while net loss narrowed to $38.8 million.
- The company cut 11% of Peloton employees this week to save $100 million and expects adjusted EBITDA between $120 million and $135 million this quarter; CFO Liz Coddington will step down in March.
- Industry-Wide, Peloton forecasts sluggish sales to continue and guides Q3 revenue between $605 million and $625 million, with Coddington stating, "Our guidance is 2.65 to 2.675 million paid connected fitness subscriptions.
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Is Peloton Interactive a Zombie Stock — Dead, but Doesn’t Know It Yet?
Quick Read Peloton Interactive (PTON) reported Q2 revenue of $657M, down 3% YoY. Paid subscribers fell 7% to 2.661M. Peloton’s new Cross Training Series hardware failed to drive expected sales despite positive media reviews. Peloton stock plunged 23% after earnings and is down 36% over the past 12 months. Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that t…
·New York, United States
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Coverage Details
Total News Sources19
Leaning Left4Leaning Right0Center8Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 33%
C 67%
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