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yesterday

Peloton Reports Declining Sales but Raises Revenue Forecast Under New CEO

Q3 FY2025 results show falling equipment sales and a wider-than-expected loss, as Peloton pivots toward subscriptions and AI-driven innovations.

A person walks past a Peloton store in the Manhattan borough of New York City, U.S., January 25, 2022. REUTERS/Carlo Allegri/File photo
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Woman riding her Peloton bike
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Overview

  • Peloton posted Q3 revenue of $624 million, down 13% year-over-year, with equipment sales plunging 27% to $206 million.
  • The company reported a loss per share of 12 cents, exceeding analysts' expectations of a 6-cent loss.
  • Peloton raised its full-year 2025 revenue forecast to $2.46–$2.47 billion, reflecting a $7.5 million increase at the midpoint.
  • CEO Peter Stern, in his first earnings call, emphasized the shift to a subscription-based model and the integration of AI tools like Google Gemini to enhance customer experience and operations.
  • The company highlighted a $5 million tariff-related headwind for Q4 but downplayed its impact, citing its focus on subscription growth over hardware sales.