Peloton Stock Surges on Solid Revenue, Upbeat Adjusted Profit Forecast

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]