Peloton Pedals Through Challenging Quarter As New CEO Charts Turnaround
Just like its toughest workouts, PelotonPTON is facing a steep incline. The fitness tech pioneer’s latest report showed a 13% revenue slide and an EPS miss that sent shares down as much as 5.4% yesterday. The quarter marked the first under new CEO Peter Stern, revealing pivot pains despite a slight revenue beat.
- The slip stemmed from a 27% nosedive in hardware sales, while subscriptions fell 4% from last year. EPS doubled loss forecasts at -$0.12 even after a 23% reduction in operating expenses.
- Stern downplayed tariff impacts, expecting a “$5M Free Cash Flow headwind to Q4,” and focused on AI integrations — notably raising guidance for adjusted EBITDA, a key profit metric.
CEO’s fitness plan in action: Celebrating his “Century Club” 100-day milestone, CEO Stern is implementing four strategic objectives focused on member outcomes, omnichannel accessibility, lifelong relationships, and optimizing operations, as he transforms Peloton from hardware-centric to subscription-powered (now 67% of revenue). With net debt slashed 35% year-over-year, Peloton’s balance sheet is getting as lean as its members, though investors still need convincing that this workout plan will deliver sustainable gains.