Financial Data and Key Metrics Changes - Total revenue for Q2 was $674 million, exceeding guidance by $14 million, with product revenue at $253 million and subscription revenue at $421 million [32][34] - Average net monthly paid connected fitness subscription churn was 1.4%, reflecting a 50 basis point improvement quarter-over-quarter [28][29] - Adjusted EBITDA was $58 million, $28 million above the high end of guidance, and free cash flow was $106 million, an improvement of $95 million quarter-over-quarter [42][48] Business Line Data and Key Metrics Changes - Over 2 million unique members completed strength training workouts, which accounted for 75% of total cycling workouts [12] - Connected Fitness products gross margin reached 12.9%, the first time in over three years to achieve double digits [22][39] - The company ended the quarter with 2.88 million paid connected fitness subscriptions, reflecting a net decrease of 21,000 [27] Market Data and Key Metrics Changes - International hardware sales showed positive performance alongside growth in paid connected fitness subscriptions from international markets [17] - Third-party retail sales were lower than expected, partly due to reduced promotional discounts on the original Bike [35] Company Strategy and Development Direction - The company aims to focus on innovation, improving unit economics, and expanding presence in more locations to enhance member engagement [11][50] - The strategy includes deepening connections among members and enhancing member outcomes through new products and experiences [11][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, emphasizing the importance of operational excellence and financial discipline [51][52] - The company is on track to exceed $200 million in run rate cost savings by the end of fiscal '25, reflecting progress in rightsizing costs [23][63] Other Important Information - The company raised its full-year fiscal 2025 guidance for paid connected fitness subscriptions by 55,000 at the midpoint [45] - The company expects to maintain connected fitness product gross margins primarily due to a shift towards higher-margin products [123] Q&A Session Summary Question: Path to growth versus ongoing improvement in profits - Management is focused on rightsizing expenses and improving gross margins before discussing specifics on growth timelines [56][57] Question: Deleveraging plan milestones and benefits - The company has reduced net debt by $281 million or 30% year-over-year, improving leverage ratios and enabling interest expense savings [70][71] Question: Impact of tariffs on P&L - No Peloton branded hardware products are subject to tariffs, and the expected impact from potential tariffs is minimal [74] Question: Free cash flow performance - Free cash flow of $106 million in Q2 was driven by favorable revenue and faster-than-expected operating expense reductions [78][79] Question: Churn improvement drivers - The low churn rate of 1.4% is attributed to long-standing loyal members and increased engagement levels [84][85] Question: Pricing strategy in light of improving churn - Pricing is a powerful lever, and the company is evaluating pricing strategies carefully, especially for subscriptions [97][98] Question: Cost optimization opportunities - The company is aggressively pursuing cost savings, particularly in IT and corporate real estate expenses [102][103] Question: Marketing investment mix - The company is balancing brand and performance marketing, focusing on measurable returns while improving marketing efficiency [110][111] Question: Stabilizing gross addition declines - The focus is on enhancing member satisfaction and engagement to retain existing customers and attract new ones [115][116]

Core Insights - Peloton Interactive's shares increased significantly after the company reported second-quarter revenue and adjusted earnings that exceeded analyst expectations [1][5] - The company generated $673.9 million in revenue for Q2 fiscal 2025, a 9% decline year-over-year, but above the analyst consensus of $655.17 million [1] - Peloton reported a loss of $92 million for the quarter, which was larger than the expected loss of $68.2 million [1] Financial Performance - After accounting for one-time costs, Peloton's adjusted EBITDA was $58.4 million, more than double the $27.8 million that analysts had anticipated [2] - The forecast for adjusted EBITDA for Q3 is projected to be between $70 million and $85 million, and for the full fiscal year, it is expected to be between $300 million and $350 million, both exceeding previous estimates [3] Leadership and Future Outlook - This quarter marks Peloton's first since the announcement of new CEO Peter Stern, although he officially took over after the quarter ended [4] - The company acknowledged the challenges ahead, stating there is a "steep hill to climb to reach sustained, profitable growth" [4][5] - Peloton's shares rose over 14% on the reporting day, nearly doubling their price from a year ago [4]

Peloton (PTON) reported $673.9 million in revenue for the quarter ended December 2024, representing a year-over-year decline of 9.4%. EPS of -$0.24 for the same period compares to -$0.54 a year ago.The reported revenue represents a surprise of +2.85% over the Zacks Consensus Estimate of $655.23 million. With the consensus EPS estimate being -$0.19, the EPS surprise was -26.32%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Peloton Interactive generated strong cash flows and exceeded revenue expectations, yet faced challenges with subscriber growth and equipment sales in its Q2 FY2025 earnings report.Peloton Interactive (PTON 3.69%), a leader in connected fitness product offerings, released its Q2 FY2025 earnings report on February 6, 2025.The firm demonstrated a boost in revenue, reaching $673.9 million, which was above analyst expectations of $652 million. However, it recorded an EPS of ($0.24), up from ($0.54) in the year-a ...

NEW YORK, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Peloton Interactive, Inc. (Nasdaq: PTON) has announced its financial results for the second quarter fiscal 2025. Please visit the Peloton investor relations website to view the shareholder letter. Today, the company will host a conference call and live audio webcast to discuss the results at 8:30 a.m. ET. Call Details:Event: Peloton Second Quarter Fiscal 2025 Earnings Conference CallDate: Thursday, February 6, 2025Time: 8:30 a.m. ET Live Call Registration (link) L ...

Dear Shareholders, We are grateful to Karen Boone and Chris Bruzzo for their leadership over the past few quarters. With their support, we delivered results that exceeded our guidance on key metrics in Q2. Upon Peter joining as CEO and President on January 1, Karen and Chris have now returned their focus to Board duties. We hope they feel the satisfaction that comes from a hard, important job well done and look forward to their contributions as Board Members. Peloton is a category-defining brand that is bel ...

Analysts on Wall Street project that Peloton (PTON) will announce quarterly loss of $0.20 per share in its forthcoming report, representing an increase of 63% year over year. Revenues are projected to reach $655.23 million, declining 11.9% from the same quarter last year.The current level reflects a downward revision of 1.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over t ...

Peloton Interactive, Inc. (PTON) is scheduled to report second-quarter fiscal 2025 results on Feb. 6, before the opening bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the last reported quarter, the company reported breakeven earnings per share, beating the Zacks Consensus Estimate of a loss of 15 cents.The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters with an average surprise of 35.5%.Trend in Estimate Revision of PTONThe Zacks ...

Peloton (NASDAQ: PTON ) reports earnings this week, and while they will likely show improvements, the stock has enjoyed a run-up since October. After trading in the $3 range for much of 2024 (and after a 98% drop from euphoric COVID-era valuations) the stock priceConservative individual investor that tends toward value investing but not exclusively. Learning new strategies and look forward to sharing in dialogue with others here to learn. I taught a financial management for non-financial managers class as a ...