Peloton(US:PTON) Yahoo Finance·2025-11-06 21:10Core Insights - Peloton reported Q3 CY2025 revenue of $550.8 million, a 6% year-on-year decline, but exceeded analyst estimates by 2.1% [1][7] - The company provided optimistic guidance for the next quarter, projecting revenue of $675 million at the midpoint, which is 2.2% above analyst expectations [1] - Peloton's GAAP profit was $0.03 per share, surpassing analysts' consensus estimates by $0.03 [1][7] Company Overview - Peloton, initially a Kickstarter campaign, is a fitness technology company recognized for its at-home exercise equipment and interactive online workout classes [4] Revenue Performance - Over the trailing 12 months, Peloton's sales totaled $2.46 billion, indicating stagnation compared to five years ago, reflecting poor business quality [5] - The company has faced challenges in consistently increasing demand, with a 6% annual revenue decline over the last two years [6] Financial Metrics - Adjusted EBITDA for the quarter was $118.3 million, with a margin of 21.5%, exceeding analyst estimates [7] - Operating margin improved to 7.5%, up from 2.1% in the same quarter last year, while free cash flow margin rose to 12.2%, up from 1.8% [7] - The company reaffirmed its full-year revenue guidance of $2.45 billion and EBITDA guidance of $450 million, both above analyst estimates [7] Subscriber Dynamics - Connected fitness subscribers reached 2.73 million, down 168,000 year-on-year, indicating a decline in monetization despite a higher subscriber count compared to revenue growth [8]