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Peloton Returns to Profit, Raises Holiday Guidance on AI-Refreshed Lineup

The outlook leans on an October hardware relaunch featuring Peloton IQ and higher prices after results that predated the update.

Overview

  • Peloton posted net income of about $13.9 million and earnings of $0.03 per share on revenue of roughly $551 million, topping Wall Street estimates even as sales fell 6% year over year.
  • Management forecast $665 million to $685 million in holiday-quarter revenue and lifted full-year adjusted EBITDA to $425 million to $475 million, pointing to new AI features such as an activity-tracking camera and a 360-degree swivel screen to drive demand.
  • The company announced a large recall of older Bike+ units in the U.S. and Canada over seat post failures, recording a $13.5 million charge in the quarter.
  • Ending paid connected fitness subscriptions fell 6% year over year to 2.732 million, reflecting ongoing membership softness alongside recent price increases.
  • Shares rose about 9% on Friday after the beat and guidance reinforced investor confidence in the turnaround under CEO Peter Stern.