Peloton Interactive (NASDAQ:PTON) Issues Earnings Results

Peloton Interactive (NASDAQ:PTON) posted its earnings results on Thursday. The company reported ($0.09) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.02), FiscalAI reports. The business had revenue of $656.50 million for the quarter, compared to analysts’ expectations of $675.04 million. During the same quarter in the previous year, the firm posted ($0.24) earnings per share. The business’s revenue was down 2.5% on a year-over-year basis.

Here are the key takeaways from Peloton Interactive’s conference call:

• Peloton is repositioning from “connected fitness” to a broader “connected wellness” strategy and launched a hardware refresh plus AI personalization—most notably the Cross Training Series and Peloton IQ—to expand cardio+strength and new wellness offerings.
• Profitability and the balance sheet improved materially: Q2 Adjusted EBITDA grew 39% to $81M, free cash flow was $71M, net debt fell 52% to $319M, and management raised full‑year Adjusted EBITDA and gross margin guidance.
• Top‑line softness: Q2 revenue missed guidance by roughly $8M due mainly to fewer-than-expected equipment upgrades by existing members and ~$4M of delivery‑timing delays; full‑year revenue guidance was trimmed by $30M and implies ~3% YoY decline at the midpoint.
• Subscription business showed resilience after a price increase—average net monthly churn was 1.9% (better than feared), paid Connected Fitness subs were 2.661M, and engagement metrics (workout time +7% YoY, 46% adoption of IQ, personalized-plan usage +10%) support retention.
• Leadership note: CFO Liz Coddington will depart at the end of March; management says the company has a stronger financial foundation and has begun a search for her successor, representing a potential short‑term transition risk.

Peloton Interactive Price Performance

NASDAQ PTON traded up $0.04 during mid-day trading on Friday, reaching $4.43. 2,046,703 shares of the stock were exchanged, compared to its average volume of 13,528,913. The stock has a market cap of $1.85 billion, a P/E ratio of -15.59, a P/E/G ratio of 1.37 and a beta of 2.41. Peloton Interactive has a one year low of $4.09 and a one year high of $10.25. The stock has a 50 day simple moving average of $6.24 and a 200-day simple moving average of $7.09.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on PTON. Wall Street Zen upgraded Peloton Interactive from a “hold” rating to a “buy” rating in a research report on Saturday, January 31st. Morgan Stanley boosted their price target on Peloton Interactive from $6.00 to $6.50 and gave the stock an “equal weight” rating in a report on Wednesday, November 19th. Telsey Advisory Group dropped their price objective on shares of Peloton Interactive from $8.00 to $6.00 and set a “market perform” rating for the company in a report on Friday. Wolfe Research set a $9.00 target price on shares of Peloton Interactive in a report on Friday, January 30th. Finally, Citigroup decreased their price target on shares of Peloton Interactive from $9.50 to $8.25 and set a “neutral” rating for the company in a research report on Thursday, November 20th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Peloton Interactive has a consensus rating of “Moderate Buy” and a consensus target price of $9.10.

Insider Buying and Selling at Peloton Interactive

In related news, CFO Elizabeth F. Coddington sold 21,820 shares of the company’s stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $6.31, for a total transaction of $137,684.20. Following the sale, the chief financial officer owned 346,535 shares in the company, valued at $2,186,635.85. This represents a 5.92% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jennifer Cunningham Cotter sold 131,495 shares of the stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $6.64, for a total value of $873,126.80. Following the transaction, the insider owned 100,269 shares in the company, valued at $665,786.16. The trade was a 56.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 1,107,129 shares of company stock valued at $7,708,694. 1.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Peloton Interactive

Several hedge funds and other institutional investors have recently bought and sold shares of PTON. Vident Advisory LLC raised its position in Peloton Interactive by 1.1% in the 2nd quarter. Vident Advisory LLC now owns 110,258 shares of the company’s stock valued at $765,000 after buying an additional 1,180 shares during the last quarter. Cresset Asset Management LLC grew its stake in shares of Peloton Interactive by 11.9% in the 3rd quarter. Cresset Asset Management LLC now owns 12,748 shares of the company’s stock worth $115,000 after acquiring an additional 1,354 shares in the last quarter. Vise Technologies Inc. grew its stake in shares of Peloton Interactive by 10.3% in the 3rd quarter. Vise Technologies Inc. now owns 15,680 shares of the company’s stock worth $141,000 after acquiring an additional 1,466 shares in the last quarter. Osaic Holdings Inc. raised its holdings in shares of Peloton Interactive by 4.3% in the second quarter. Osaic Holdings Inc. now owns 59,883 shares of the company’s stock valued at $416,000 after purchasing an additional 2,472 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV lifted its position in shares of Peloton Interactive by 21.8% during the third quarter. Mercer Global Advisors Inc. ADV now owns 17,257 shares of the company’s stock valued at $155,000 after purchasing an additional 3,087 shares in the last quarter. 77.01% of the stock is owned by institutional investors.

Peloton Interactive News Roundup

Here are the key news stories impacting Peloton Interactive this week:

• Positive Sentiment: Management is showing margin progress, cost discipline and price increases that management and some analysts say should lift EBITDA and free cash flow over time; this is the main bullish case for recovery. Peloton: Price Increases Pave The Path To Profit Jump
• Positive Sentiment: Quarter showed improving profitability metrics and deleveraging even as top-line growth lags — a constructive signal for investors focused on cash flow and valuation at these levels. Peloton Misses Q2 Revenue as Equipment Sales Lag, Profitability Improves
• Neutral Sentiment: Telsey Advisory cut its price target from $8 to $6 and moved to “market perform” — the target is lower but still implies upside from current levels, reflecting mixed analyst views. Benzinga
• Negative Sentiment: Q2 results missed expectations: EPS of ($0.09) vs. ($0.07) expected and revenue $656.5M vs. ~$675M consensus. Management gave Q3 revenue guidance below Street estimates ($605M–$625M vs. ~$638M), prompting the sharp sell-off. Peloton shares tumble as revenue misses estimates, CFO departs
• Negative Sentiment: CFO Liz Coddington is leaving for Palmetto, creating near-term leadership and execution uncertainty during a critical turnaround phase; the departure amplified investor concern. Peloton CFO Coddington Leaving for Solar Energy Company Palmetto PALMETTO APPOINTS LIZ CODDINGTON AS CHIEF FINANCIAL OFFICER
• Negative Sentiment: Investor reaction has been swift: heavy post-earnings selling and negative headlines about slowing subscriptions and weak demand for new/price-hiked products. Expect continued volatility until top-line trends stabilize. Peloton posts weak holiday quarter after splashy product overhaul fails to land

Peloton Interactive Company Profile

Peloton Interactive, Inc operates a digital fitness platform that combines connected exercise equipment with live and on-demand workout classes. The company’s core products include stationary bikes (Peloton Bike and Bike+), treadmills (Peloton Tread and Tread+), and the Peloton Row. Each device integrates a touchscreen display that streams instructor-led cycling, running, strength, yoga, meditation and other fitness classes. Peloton generates recurring revenue through subscription plans, which grant users access to its growing library of workouts, performance tracking tools and community features.

Founded in 2012 by John Foley and headquartered in New York City, Peloton set out to deliver an immersive home-fitness experience by blending hardware, software and content.