Overview
- Peloton posted EPS of 3 cents on $551 million in revenue, topping Wall Street estimates on both metrics.
- The company guided holiday-quarter revenue to $665 million to $685 million and raised its full-year adjusted EBITDA outlook to $425 million to $475 million.
- Peloton initiated a recall of 833,000 Bike+ units over a seat-post defect, recording a $13.5 million charge that reduced gross margin by roughly 30 basis points year over year.
- Ending paid connected fitness subscriptions fell 6% year over year to 2.732 million, even as the company pushes new hardware and subscription pricing.
- Shares jumped about 11% after hours and more than 7% premarket, while J.P. Morgan flagged uncertainty about sustaining durable revenue growth despite early traction from the refreshed, higher-priced lineup.