Core Insights - Peloton Interactive continues to face significant challenges in growth and profitability following a post-pandemic decline, with little indication of a turnaround in its recent quarterly reports [1][4][9] - The company's stock has decreased by 20% in the first half of the year, reflecting broader market trends and weakening consumer sentiment [2][6] - Leadership changes, including the appointment of Peter Stern as CEO and Charles Kirol as COO, have not yet translated into improved business performance [4][6] Financial Performance - Revenue for the first half of the year fell by 9% to $673.9 million, with a decline in both subscribers and members [5] - In fiscal Q3, revenue further declined by 13% to $624 million, although cost-cutting measures improved the GAAP net loss from $167.3 million to $47.7 million [7] - Despite these challenges, the company has managed to turn an adjusted EBITDA loss of $81.7 million from the previous year into a profit of $58.4 million [5][7] Market Reactions - The stock experienced a brief increase in February following a Q2 earnings report, but subsequently fell due to external market pressures rather than company-specific news [4][6] - A significant drop of 12% occurred on June 17 after the Senate blocked a provision allowing Health Savings Accounts to be used for Peloton equipment [7] Future Outlook - While Peloton is making progress on its bottom line through cost-cutting strategies and has raised its revenue guidance, steady growth in revenue and subscribers remains elusive [9]

Industry Overview - The Zacks Leisure and Recreation Products industry is experiencing challenges due to the ongoing tariff war and soft macroeconomic data, but there is a positive trend in fitness product sales driven by growing health and fitness awareness [1][3] - The industry includes companies that provide a range of recreational products and services, thriving on economic growth that fuels consumer demand [2] Trends Impacting the Industry - The tariff war initiated by U.S. President Donald Trump is affecting the industry, with concerns about its impact on the U.S. economy amid inflation and global geopolitical tensions [3] - The golf industry is booming, with rising demand for golf equipment due to technological advancements and increased participation among young people, particularly in emerging markets like India and China [4] - There is robust demand for fitness-related products in the U.S., driven by health awareness and lifestyle changes, leading to increased investment in home workout equipment and digital fitness platforms [5] Industry Performance - The Zacks Leisure and Recreation Products industry currently holds a Zacks Industry Rank of 204, placing it in the bottom 17% of over 246 Zacks industries, indicating dismal near-term prospects [6][7] - The industry's earnings outlook is negative, with a 13.6% decrease in northbound earnings estimates since January 31, 2025 [8] Stock Market Performance - The industry has outperformed the S&P 500, with a collective growth of 49.8% over the past year compared to the S&P 500's 11.8% increase [10] Valuation Metrics - The industry trades at a forward price-to-earnings ratio of 35.08X, significantly higher than the S&P 500's 22.64X and the sector's 18.45X [13] Notable Companies - **Peloton**: Transitioning to a profitability-driven recovery, with high-margin subscription revenues contributing nearly 70% of total sales. Expected fiscal 2025 earnings growth of 72.9% and a stock increase of 84.8% in the past year [16][17] - **Playboy**: Benefiting from an asset-light licensing model and a rebound in its China licensing business, with a stock increase of 137.5% in the past year [20][21] - **Academy Sports and Outdoors**: Gaining from a growth strategy focused on brand partnerships and digital upgrades, but shares have declined by 2.3% in the past year with expected earnings decline of 1.7% for fiscal 2025 [24]

INVESTOR PRESENTATION May 2024 Disclaimer The information contained in this presentation is being provided to you for informational purposes only and does not constitute legal, tax, investment, accounting or other advice by Peloton Interactive, Inc. ("Peloton", "we", "us" or the "Company") or any other party and may not be relied upon as such. This presentation does not constitute an offer to sell or a solicitation of an offer to make an investment in the Company, including the purchase of any securities of ...

Core Viewpoint - Peloton Interactive has experienced a significant decline in sales and stock price since the pandemic-related surge in demand, leading to ongoing challenges in its business model and financial performance [2][11]. Revenue Performance - Peloton's annual revenue peaked at $4 billion in fiscal 2021, with 78% from equipment sales and 22% from subscriptions [5]. - Revenue decreased to $3.5 billion in fiscal 2022, $2.8 billion in fiscal 2023, and further to $2.7 billion in fiscal 2024, with forecasts suggesting it will fall below $2.5 billion for fiscal 2025 [6]. - Equipment sales have dramatically declined, contributing only 33% to total revenue in fiscal 2025, while subscriptions accounted for 67% [8]. Subscriber Trends - The number of connected fitness subscribers fell to 2.88 million by the end of fiscal 2025 Q3, a 6% decline year-over-year [9]. - A new subscription service for non-equipment owners saw a decline in members to 573,000, down 15% from the previous year [10]. Cost Management and Profitability - Peloton's net loss soared by 1,390% in fiscal 2022, reaching $2.8 billion, prompting management to cut costs significantly [12][13]. - By fiscal 2024, operating expenses were halved compared to fiscal 2022, resulting in a GAAP loss of $552 million but a positive adjusted EBITDA of $3.5 million [14]. - In the first three quarters of fiscal 2025, Peloton reported a GAAP loss of $140.5 million but an adjusted EBITDA of $263 million, indicating improved financial health [15]. Market Position and Valuation - Peloton's current price-to-sales (P/S) ratio is 1, significantly lower than its peak of around 20, reflecting investor skepticism about recovery prospects [17]. - The recent increase in adjusted EBITDA is primarily due to cost-cutting measures rather than revenue growth, raising concerns about sustainability [19]. Future Outlook - For Peloton to recover, it must find ways to increase sales and drive revenue growth without incurring further losses [20].

Core Insights - Peloton Interactive, Inc. (PTON) shares have increased by 21.6% over the past three months, outperforming the Zacks Leisure and Recreation Products industry's growth of 13.2% and the Consumer Discretionary sector's rise of 13.5% [1][2] - Investor sentiment has improved due to Peloton's turnaround efforts and focus on cost efficiency, including the launch of a "Repowered" marketplace for refurbished products [2][6] - The company is currently trading 32.3% below its 52-week high of $10.90, raising questions about future investment [7] Performance Metrics - Peloton's subscription revenues now account for nearly 70% of total sales, indicating a shift towards a profitability-driven recovery [8] - The company added 5,000 net Connected Fitness subscriptions in the fiscal third quarter, maintaining a low churn rate of 1.2% despite a 27% decline in hardware sales [9][10] - Marketing spend has decreased by 46% year over year, improving customer acquisition metrics and driving higher attach rates for Tread sales [11] Strategic Initiatives - Peloton is implementing new retail formats and expanding through university partnerships and commercial installations, which are expected to lower customer acquisition costs [12] - The "Find Your Power" marketing campaign has broadened the company's appeal, particularly among male users [11] Challenges and Risks - Hardware revenues fell by 27% year over year, raising concerns about demand for premium fitness equipment [13] - Competitive pressures from digital fitness alternatives are increasing, making subscriber growth more challenging [14] - Leadership transitions with multiple key executive roles unfilled may hinder strategic execution [15] Financial Outlook - Earnings per share (EPS) estimates for fiscal 2025 have been revised downward from a loss of 33 cents to a loss of 41 cents, reflecting declining analyst confidence [16] - Peloton's stock is trading at a forward price-to-sales (P/S) multiple of 1.18X, significantly below the industry average of 4.95X, indicating a potentially attractive investment opportunity [19] Conclusion - Peloton is showing operational improvements through cost control and growing subscription revenue, but challenges in hardware sales and leadership gaps remain [25][26] - The mixed outlook suggests that investors may consider holding existing positions rather than pursuing new investments at this time [26]

Group 1 - The company is exploring ways to expand its customer base by making its products available in gyms and launching a peer-to-peer marketplace for used equipment [1][2] - Peloton plans to distribute its machines to commercial gyms through its subsidiary Precor and is working to integrate Peloton workouts with compatible Precor equipment [1] - The newly launched peer-to-peer marketplace, Repowered, aims to provide a more streamlined and premium experience for second-hand customers compared to traditional platforms like Facebook Marketplace [2] Group 2 - The company aims to leverage AI to enhance personalization for its members by creating individualized programs that match them with the right classes and instructors [3]

Core Insights - Peloton has launched a resale marketplace called Peloton Repowered to connect buyers and sellers of used equipment, aiming to capitalize on the growing trend of pre-owned merchandise [3][4][5] - The company reported a 13% year-on-year decline in revenue to $624 million and a net loss of nearly $48 million in its third-quarter earnings [8] - Peloton's stock has significantly decreased since its peak in 2021, with a decline of over 20% since the beginning of the year [9] Marketplace Details - Peloton Repowered will initially be available in the Boston, New York City, and Washington, D.C. metro areas, with plans for national expansion [4] - Sellers on the platform will receive 70% of the sale price and a discount on new equipment, with discounts ranging from $200 to $600 depending on the new equipment purchased [5][6] - Buyers will benefit from a reduced activation fee of $45 for used equipment, down from the typical fee of $95 [6] Strategic Initiatives - CEO Peter Stern emphasized that he was not brought in to sell the company but to revitalize it and focus on growth through various initiatives, including enhancing the customer experience with AI [3][10] - The company has implemented job cuts and shifted its focus towards subscription sales rather than hardware sales [10][11] - Peloton is also targeting specific groups with discounted equipment rates, including educators and healthcare workers [11]

Peloton introduced its own peer-to-peer resale marketplace, Repowered.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.The launch aims to capture a segment of the expanding resale market for connected fitness equipm ...

Company Overview - Peloton Interactive, Inc. is actively engaging in new initiatives, including the launch of outdoor runs from Peloton Studios in New York, coinciding with Global Running Day [2]. Leadership and Organizational Changes - The new CEO, Peter C. Stern, has acknowledged the strength of the existing team and expressed gratitude towards previous leadership for their recruitment efforts [4]. - A significant organizational change includes the hiring of a new Chief Operating Officer, Charlie Kirol, aimed at improving supply chain operations [5].

Peloton (PTON) 2025 Conference June 04, 2025 01:00 PM ET Speaker0 For joining. I'm Curt Nagel. I'm the SMidCap Internet analyst here at BofA. Very pleased to welcome Peter Stern, CEO of Peloton. Thanks for joining today, we're really looking forward to the conversation. Thanks for Speaker1 having me, Curt. And I wanna just take a moment to acknowledge that today is global running day. So if you haven't gotten out already, I would encourage you to do it. And we're also launching today for the first time outd ...