Should You Buy Peloton Stock in September With $10,000 and Hold for 10 Years?

Core Insights - Peloton Interactive was a major beneficiary of the COVID-19 pandemic, with shares increasing by 550% from its public debut in September 2019 to a peak in January 2021 [1] - The company has faced significant challenges since then, with shares trading 95% below their record as of September 18 [2] Financial Performance - In fiscal year 2025, Peloton reported a net loss of $118.9 million, a significant improvement from a net loss of $551.9 million the previous year [3] - Q4 of fiscal 2025 saw a positive net income of $21.6 million, surprising the market which expected another loss [3] - The company has reduced expenses by at least $200 million in fiscal 2025 and aims to cut an additional $100 million in fiscal 2026 [4] Debt and Balance Sheet - Peloton's net debt has been nearly halved over the last 12 months, now standing at $459 million, marking a significant improvement from its previous financial troubles [5] Growth Challenges - Despite stopping losses, Peloton faces challenges in returning to growth, which is crucial for its long-term success [6] - As of June 30, Peloton had 2.8 million connected fitness subscribers, a decline from nearly 3 million two years ago [7] - Revenue has fallen by 6% year over year, with the company shifting its sales focus to subscriptions, which are high-margin and recurring [8] Future Outlook - Peloton's leadership plans to cut another $100 million in expenses this fiscal year, but the shrinking subscriber base continues to lead to declining revenue [9] - The stock trades at a low price-to-sales ratio of 1.2, but it is not considered a smart buying opportunity at this time [9]