Core Viewpoint - Peloton has raised its revenue forecast for fiscal year 2025, but the company reported a larger-than-expected loss in Q3 due to ongoing weak demand post-pandemic, with revenue declining 13% year-over-year, marking the third consecutive quarter of sales decline [1] Group 1: Financial Performance - In Q3, Peloton reported a loss of $0.12 per share, exceeding analyst expectations of $0.06 per share [1] - Revenue for the quarter was $624 million, slightly above Wall Street's expectation of $619 million, but still insufficient to instill confidence in the new CEO's turnaround efforts [1] - Hardware sales, including bikes and treadmills, fell by 27%, while app subscription revenue decreased by 4%, leading to a total paid membership drop to 6.1 million, down approximately 500,000 year-over-year [2] Group 2: Strategic Shifts - The company is transitioning from hardware sales to focus on live and on-demand fitness subscription services, a shift necessitated by declining sales post-pandemic [1] - Peloton has adjusted its annual revenue forecast to approximately $2.46 billion to $2.47 billion, with adjusted EBITDA projected between $330 million and $350 million, indicating a positive outlook on cost-cutting measures [2] Group 3: Market Conditions and Challenges - Consumer spending on non-essential items has decreased due to economic uncertainty, with the U.S. consumer confidence index declining for four consecutive months and inflation expectations reaching a 42-year high in April [1] - The company faces additional challenges from tariffs, with a 10% tariff on most of its hardware sourced from Taiwan and higher tariffs on apparel imported from China, which are expected to reduce free cash flow by $5 million in Q4 [3] Group 4: Leadership and Future Plans - The new CEO, Peter Stern, has been working to stabilize the company since his appointment in January, implementing cost control measures that resulted in a 23% reduction in operating expenses, primarily from lower marketing and sales costs [3] - Peloton plans to announce a forward-looking plan for fiscal year 2026 soon, indicating ongoing strategic changes within the company [3]

Core Insights - Peloton Interactive, Inc. has announced its financial results for the third quarter of fiscal 2025 [1] - A conference call and live audio webcast will be held to discuss the results [1][2] Company Overview - Peloton provides members with high-quality equipment, innovative software, expert instruction, and a supportive fitness community [3] - The company was founded in 2012 and is headquartered in New York City, serving millions of members across various countries including the US, UK, Canada, Germany, Australia, and Austria [3]

Q3 FY2025 Highlights * For a reconciliation of all non-GAAP financial measures to their most directly comparable GAAP financial measure, and rationale for why we rely on these measures, see the reconciliation tables below. Q3 FY2025 Shareholder Letter May 8, 2025 Dear Shareholders, On a personal note, I recently achieved the Peloton employee "Century Club" milestone, marking 100 days. I am even more optimistic about the future of this company and more grateful for this opportunity to lead Peloton than when ...

Industry Overview - The Consumer Discretionary sector has experienced mixed performance in 2025 due to elevated inflation, high interest rates, and uncertainty in trade and fiscal policies, leading to cautious consumer behavior in discretionary spending categories [1] - Despite a relatively stable job market, inflationary pressures and rising living costs have constrained consumer spending ability [1] - Businesses in the sector face planning challenges due to unpredictable tariff developments affecting sourcing, pricing strategies, and inventory management [1] Earnings Performance - As of April 30, 43.3% of companies in the Zacks Consumer Discretionary sector, representing 60.9% of the sector's market capitalization, reported earnings, with 53.8% beating earnings estimates and 46.2% surpassing revenue estimates [2] - Year-over-year earnings increased by 4% on a 0.7% rise in revenues, influenced by inflationary pressures and fluctuating consumer sentiment, particularly among lower-income households [2] - First-quarter 2025 earnings for the sector are expected to increase by 0.8% year-over-year, a significant decline from the 19% growth in the previous quarter [4] Segment Performance - The leisure and recreation services segment has performed relatively well despite headwinds, driven by a shift in consumer preference towards experience-based spending in fitness, gaming, and entertainment [3] - However, the industry is facing challenges such as rising labor and supply costs, tightening pricing flexibility, and increased competition [3] Company-Specific Insights - Planet Fitness is set to report first-quarter 2025 results, with an Earnings ESP of +0.71% and a Zacks Rank of 3, indicating a potential earnings beat [5][6] - The Zacks Consensus Estimate for Planet Fitness's first-quarter 2025 revenues is $280.7 million, reflecting a 13.2% increase year-over-year, with EPS expected to be 62 cents, up 17% from the previous year [7] - Peloton Interactive is expected to report a revenue decrease of 13.7% year-over-year, with a consensus estimate of $619.7 million and a projected loss per share of 6 cents, an improvement from a loss of 45 cents in the prior year [9] - Xponential Fitness is anticipated to report a revenue decline of 4.3% year-over-year, with revenues pegged at $76.1 million and EPS expected to decline by 6.3% [11] - PENN Entertainment is projected to report first-quarter revenues of $1.7 billion, indicating a 5.9% growth year-over-year, with a consensus loss per share of 29 cents, improving from a loss of 79 cents in the previous year [13]

Core Insights - Peloton (PTON) is expected to report a quarterly loss of $0.06 per share, marking an 86.7% increase in losses compared to the same period last year [1] - Revenue is forecasted at $619.71 million, reflecting a year-over-year decrease of 13.7% [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating analysts' reassessment of initial estimates [1] Revenue Estimates - Analysts predict 'Revenues- Subscription' to reach $417.00 million, a decline of 4.8% from the prior-year quarter [4] - 'Revenues- Connected Fitness Products' are expected to be $203.93 million, representing a decrease of 27.1% from the year-ago quarter [4] Subscription Metrics - The estimate for 'Ending Connected Fitness Subscriptions' is projected at 2,862, down from 3,055 in the previous year [4] Profit Estimates - 'Gross profit- Subscription' is expected to be $283.97 million, compared to $298.10 million from the previous year [5] - 'Gross profit- Connected Fitness Products' is projected at $27.75 million, an increase from $11.60 million year-over-year [5] Stock Performance - Peloton shares have increased by 39.8% in the past month, outperforming the Zacks S&P 500 composite, which rose by 10.6% [5] - Peloton holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [5]

Core Viewpoint - Peloton Interactive's stock has seen a recent increase following an upgrade from Truist Financial, indicating potential growth and improved financial health despite ongoing challenges in revenue growth and market skepticism [1][4][3]. Financial Performance - Peloton's projected FY25 revenue is between $2.43 billion and $2.48 billion, reflecting an approximate 9% year-over-year decrease at the midpoint, with an Adjusted EBITDA target of $300 million to $350 million and positive free cash flow of at least $200 million [5][6]. - In Q2 FY25, Peloton generated $106 million in free cash flow, a significant recovery from a $37 million loss in the same quarter last year, and raised its full-year free cash flow target to at least $200 million [7][8]. - The company achieved a total gross margin of 47.2%, with the subscription business at 67.9% and Connected Fitness Products' gross margin rising to 12.9%, up from 4.3% the previous year [10]. Cost Management and Operational Efficiency - Peloton has implemented a restructuring plan aimed at achieving over $200 million in annual savings by year-end, resulting in a 25% reduction in operating expenses year-over-year [9]. - The company's net debt decreased by 30% year-over-year to $670.3 million, aided by a successful mid-2024 debt refinancing [11]. Subscriber Trends - Paid Connected Fitness Subscriptions reached 2.88 million, slightly above expectations, but showed a sequential drop of 21,000 and a 4% decline year-over-year, while churn improved to 1.4% [12]. - Paid App subscriptions fell 19% year-over-year to 580,000 due to a strategic pullback in App-specific marketing [13]. Market Sentiment and Future Outlook - Investor sentiment remains mixed, with approximately 69 million shares, or 17.93% of the float, sold short, indicating lingering skepticism but also potential for volatility if momentum continues [14]. - The market is awaiting evidence that Peloton's improved financial stability can lead to renewed revenue growth, with the new executive team focusing on building a sustainable financial foundation [16][17].

NEW YORK, April 25, 2025 (GLOBE NEWSWIRE) -- Peloton Interactive, Inc. (NASDAQ: PTON) today released the following pursuant to an Order of the U.S. District Court for the Eastern District of New York. UNITED STATES DISTRICT COURTEASTERN DISTRICT OF NEW YORK IN RE PELOTON INTERACTIVE, INC., DERIVATIVE LITIGATIONCase No. 1:21-cv-02862-CBA-PKDistrict Judge Carol B. AmonMagistrate Judge Peggy Kuo SUMMARY NOTICE OF PENDENCY AND PROPOSED SETTLEMENT OF STOCKHOLDER DERIVATIVE ACTION TO: ALL OWNERS OF THE COMMON ...

NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) -- Peloton Interactive, Inc. (NASDAQ: PTON) will release its third quarter 2025 financial results before the U.S. stock market opens on Thursday, May 8, 2025. The company will host a conference call and live audio webcast to discuss the financial results at 8:30 a.m. (Eastern Time) that day. This quarter, Peloton’s management will answer select questions from retail and institutional investors that are related to the company’s business updates and quarterly financia ...

Group 1: Chewy - Chewy is the leading online brand for pet supplies, experiencing a rebound in stock price due to improving sales trends, with a recent upgrade to an outperform rating and a price target of $47, indicating a 49% upside from $31.50 [2] - Sales growth stabilized at 5% year-over-year in the fiscal third quarter, with potential for margin improvement through higher-margin offerings like pet pharmacy and private-label products [2] - Analysts predict free cash flow could double in the next three years, serving as a strong catalyst for the stock [2] - Risks include reliance on suppliers in China, which could be affected by tariffs, and Chewy's growth and valuation metrics compared unfavorably to competitors like Coupang [3][4] - For Chewy to reach the analyst's price target, it needs to demonstrate accelerating top-line momentum, which may be challenging in the current economic environment [5] Group 2: Peloton Interactive - Peloton has seen fluctuating demand, with a significant rebound from its 52-week low, and an analyst upgrade to a buy rating with a price target of $15, suggesting a 128% upside from $6.58 [6] - Financial results are improving, with a 15% quarter-over-quarter revenue growth despite a 9% year-over-year decline, and a notable 385% year-over-year increase in free cash flow [7] - The new CEO is implementing better cost discipline, focusing on premium products and reducing discounting, which is positively impacting financial performance [8] - Despite improvements, Peloton faces challenges as membership numbers are declining, with a 4% year-over-year drop, indicating a need for top-line growth to sustain shareholder returns [9] - The stock trades at a price-to-free cash flow multiple of 16, with potential upside if free cash flow continues to grow, but uncertainty remains regarding the sustainability of this growth [10] - Peloton's subscription business, which has higher gross margins than hardware sales, is crucial for profitable growth, but the recent decline in memberships suggests a limited market for its products [11]

Fitness stock Peloton Interactive Inc (NASDAQ:PTON) is surging today, up 10.2% at $6.69 at last glance, following an upgrade from Canaccord Genuity to "buy" from "hold" with a $10 price target. The firm cited the company's return to profitability as it "regains its footing." Today's pop has Peloton stock headed for its best daily percentage gain since mid-February. The shares lost 27% over the last month, hitting five-month lows at the start of this week. However, the 320-day moving average moved in to catc ...