Key Takeaways PTON's Peloton IQ and Cross-Training Series aim to drive deeper, consistent member engagement.PTON's AI engine delivers tailored recommendations that encourage users to try new workout formats.PTON sees enthusiasm for advanced cross-training features and higher usage metrics in October.Peloton Interactive, Inc.’s (PTON) latest initiatives, Peloton IQ and the Cross-Training Series, signal a meaningful shift in how it intends to drive deeper, more consistent member engagement. Both offerings are ...

Once one of the market's hottest stocks, Peloton is now a poster child for stock market struggles.When Peloton (PTON +3.41%) had its initial public offering (IPO) in September 2019, it had no idea just how good the timing would prove around six months later. When the COVID-19 pandemic forced a global shutdown, Peloton was in the right place at the right time to capitalize on fitness enthusiasts who could no longer go to a physical gym.From its IPO through December 2020, Peloton's stock price rose by more th ...

Question-and-Answer SessionAnd with that, it's been about a year since you joined Peloton, I think just under. Give us a recap of what you've changed in year 1 and your key learnings up until this point?Peter SternCEO, President & Director Yes. Well, let me walk you through both what changed and what didn't change. A lot, a lot has changed. We put in place our new growth strategy. I've communicated that over the course of the last few letters to our shareholders attached to our earnings. But we really have, ...

Peloton (NasdaqGS:PTON) 2025 Conference December 03, 2025 01:30 PM ET Company ParticipantsPeter Stern - CEOConference Call ParticipantsNathan Feather - Small and Mid-Cap Internet AnalystNathan FeatherHi. Good afternoon, everyone. Thank you so much for joining us. My name is Nathan Feather. I'm Morgan Stanley's Small and Mid-Cap Internet Analyst. I'm excited to be joined today by Peter Stern, CEO of Peloton. Thanks so much for joining us.Peter SternThanks for having me, Nathan.Nathan FeatherYeah. Now, before ...

Core Insights - Peloton Interactive has faced significant challenges since its initial public offering in late 2019, particularly after the pandemic-driven surge in demand subsided [1][2] - The company is attempting to recover by implementing various strategies, but sales continue to decline [4][5] Company Performance - Peloton's sales decreased by 6% year-over-year in the first quarter of the 2026 fiscal year [4] - Membership numbers and paid connected fitness subscriptions also fell by 2% compared to the previous year [5] - Despite declining sales, adjusted EBITDA increased by 2% year-over-year, and the company reported a net income of $14 million [5] Strategic Initiatives - The current CEO, Peter Stern, has introduced a growth strategy that includes a new line of AI-powered fitness equipment and services [6] - The company has explored partnerships with wellness centers and corporations, as well as acquisitions and rental offerings to boost sales [4] Market Position - Peloton's stock has underperformed compared to the S&P 500, with one-year, three-year, and five-year total returns of -30%, -33%, and -94% respectively [9] - The stock is currently priced at $6.79, with a market capitalization of $3 billion [8]

Core Insights - Peloton Interactive Inc. is viewed as a promising stock with significant upside potential despite recent challenges [1] - Citi analyst Ronald Josey has reduced Peloton's price target to $8.25 from $9.50 while maintaining a Neutral rating after the company's FQ1 2026 earnings report [1][3] - The company has lowered its full-year subscriber forecast by 3% due to increased customer turnover [1] Financial Performance - Peloton's total revenue for FQ1 reached $551 million, with $152 million from Connected Fitness products and $398 million from subscription revenue [2] - This revenue represents a year-over-year decline of 6.01%, but it exceeded Street estimates by $9.72 million [2] - The company's EPS for the quarter was $0.06, surpassing guidance by $0.05 [2] Subscriber Metrics - Connected Fitness paid subscriptions totaled 2.732 million in the quarter, reflecting a 6% decrease from the previous year [3] - The average net monthly churn improved to 1.6%, which is better by 0.2% year-over-year [3] - Revenue from Connected Fitness products declined by 5% due to lower equipment sales and deliveries [3] Company Overview - Peloton Interactive Inc. offers fitness and wellness products and services both in North America and internationally [4] - The company provides various connected fitness products, including the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, and Peloton Row [4]

Market Outlook - Matt Powers, managing partner of Powers Advisory Group, expressed optimism about the market, expecting new all-time highs for the S&P 500 index, potentially surpassing 7,000 by year-end [1] - The firm's internal sentiment model indicated extreme pessimism, which historically suggests a market bottom [1] - A significant spike in inverse ETF volume was noted, reaching its highest level in two years, indicating retail capitulation [1] - The median stock was down over 16% from its 52-week high, suggesting a more severe correction for the overall index [1] - Positive seasonal trends combined with technical and sentiment signals lead to a strong end-of-year market outlook [1] Stock Analysis Peloton Interactive Inc. (NASDAQ:PTON) - Peloton's total revenue for FQ1 was $551 million, a decline of 6.01% year-over-year but $9.72 million above estimates [9] - The company reported a decrease in Connected Fitness paid subscriptions to 2.732 million, a 6% drop from the previous year [10] - Despite challenges, the average net monthly churn improved to 1.6%, better by 0.2% year-over-year [10] - The full-year revenue guidance remains unchanged at $2.4 to $2.5 billion [9] Coinbase Global Inc. (NASDAQ:COIN) - Coinbase reported a total trading volume of $295 billion in Q3 2025, a sequential increase of 24% [13] - Total revenue for Q3 was $1.9 billion, a sequential rise of 25%, with net income at $433 million [14] - The company experienced a 37% increase in transaction revenue, reaching $1.0 billion, and a 14% increase in Subscription and Services revenue to $747 million [14] - Analyst Kevin Heal downgraded Coinbase to Hold, citing a valuation issue with the stock trading at 39x expected forward earnings [12]

Core Insights - Peloton Interactive, Inc. (PTON) and Planet Fitness, Inc. (PLNT) represent contrasting strategies in the fitness market, with Peloton focusing on connected at-home equipment and digital subscriptions, while Planet Fitness emphasizes an extensive network of affordable gyms [1] Summary of PTON - Peloton's profitability is improving, with an adjusted EBITDA of $118 million in Q1 fiscal 2026, exceeding expectations by $18 million, and generating $67 million in free cash flow, a notable improvement from the previous year [2] - The company has launched its largest product refresh, including the Cross Training Series and Peloton IQ AI coaching, which is expected to enhance engagement and shift towards premium hardware [3] - Peloton is expanding its distribution channels, opening 10 micro stores in the U.S. and partnering with Johnson Fitness & Wellness, which broadens its reach across 46 states [4] - Despite operational improvements, Peloton faces challenges with a 6% decline in paid Connected Fitness subscriptions year-over-year, contributing to a 6% revenue drop in Q1 [5] - The company is dealing with a product recall of the Original Series Bike+, resulting in a $16.5 million inventory accrual, which may impact member sentiment and usage [6] Summary of PLNT - Planet Fitness is experiencing strong demand, ending Q3 2025 with approximately 20.7 million members and achieving 6.9% same-club sales growth, leading to a 13% year-over-year revenue increase [7] - The High School Summer Pass program saw a 30% year-over-year increase in participation, attracting 3.7 million teens and fostering long-term loyalty among Gen Z consumers [8] - The company opened 35 new clubs in Q3 2025, bringing the total to 2,795, and is actively pursuing optimized club formats and upgraded equipment [9] - While membership trends are strong, attrition remains elevated due to the introduction of click-to-cancel, with management expecting higher churn through Q4 2025 [11] - Approximately 80% of the same-club sales growth in Q3 2025 came from price increases, raising concerns about potential consumer resistance to future price hikes [12] Comparative Estimates - The Zacks Consensus Estimate for Peloton's fiscal 2026 sales implies flat growth, while EPS is expected to grow by 140% year-over-year [13] - For Planet Fitness, the Zacks Consensus Estimate for 2025 sales and EPS indicates year-over-year increases of 10.8% and 15.4%, respectively [15] Price Performance - PTON stock has decreased by 30.2% over the past year, while PLNT shares have increased by 9.9% during the same period [16] Valuation - PTON is trading at a forward price-to-sales ratio of 1.12X, below its median of 1.22X, whereas PLNT's forward sales multiple is at 6.47X, above its median of 5.30X [22] Conclusion - Both companies are making significant progress in their recovery efforts, with Peloton showing signs of stabilization through innovation and expanded distribution, while Planet Fitness benefits from strong demand and brand momentum [21][23]

Core Insights - Peloton Interactive Inc. has struggled to achieve positive results from its "AI + Smart Fitness Products" strategy, particularly with its new AI-driven exercise equipment, which has shown weak sales performance since launch [1][3][6] - Despite the challenges, management anticipates a gradual increase in sales as the holiday shopping season approaches, supported by significant promotional activities [2][10] Sales Performance - The new AI product line, Cross Training Series, has only seen moderate market traction after eight weeks in retail, with increased foot traffic not translating into substantial sales [1][9] - Peloton's stock has experienced a decline of approximately 23% year-to-date, with a recent drop of 2.3% before rebounding slightly [2] Product Strategy - The company has introduced upgraded AI-driven equipment, including redesigned models of Bike, Bike+, Tread, and Tread+, all featuring the Peloton IQ platform for personalized training [6][8] - The new Cross Training Series includes advanced hardware upgrades and a comprehensive AI coaching system, aiming to enhance user experience [8][9] Pricing and Market Challenges - Peloton has raised prices across its product range, increasing device costs by an average of 11% and subscription fees by about 19%, which may hinder its ability to attract new customers in a low-growth economic environment [9][10] - Sales data from Amazon indicates limited initial interest in the new AI products, although there has been a slight uptick since the launch of Black Friday promotions [9] Consumer Behavior - The holiday shopping season typically sees a surge in fitness product demand, but Peloton faces challenges due to high pricing, leading consumers to consider lower-cost alternatives [10] - The decision-making process for consumers regarding high-priced fitness equipment may involve a lengthy consideration period, impacting immediate sales [10] Safety Concerns - Peloton has faced safety issues, including a voluntary recall of approximately 877,800 high-end Bike+ models due to reports of seat post breakage, which may affect consumer confidence [11]

Core Insights - Peloton Interactive, Inc. will have its CEO Peter Stern participate in a fireside chat at the Morgan Stanley Global Consumer & Retail Conference on December 3, 2025 [1] - The event will be accessible via a live webcast and replay on the Company's Investor Relations website [1] Company Overview - Peloton provides Members with high-quality equipment, wellness solutions, innovative software, expert instruction, and a supportive fitness community [2] - Founded in 2012 and headquartered in New York City, Peloton has millions of Members across the US, UK, Canada, Germany, Australia, and Austria [2]