Why Peloton Stock Lost 29% in 2025

Core Viewpoint - Peloton Interactive faced significant challenges in 2025, resulting in a 29% decline in stock value due to ongoing revenue and subscriber losses, compounded by leadership instability with its fourth CEO in five years [1][2][6]. Financial Performance - The company reported a revenue decrease of 8% to $2.49 billion, with members dropping from 6.4 million to 6 million and subscribers from 2.976 million to 2.8 million [3][4]. - Despite the revenue decline, Peloton improved its GAAP operating loss from $529 million to $36.2 million, and adjusted EBITDA rose from $3.5 million to $403.6 million, indicating some operational progress [4]. Future Outlook - Management anticipates a slight revenue decline for fiscal 2026, projecting revenue between $2.4 billion and $2.5 billion, which reflects a 2% decrease at the midpoint [5][6]. - Recent quarterly results showed a 6% revenue decline to $551 million, but the company achieved a GAAP net income of $14 million, attributed to a new equipment lineup and the introduction of Peloton IQ, an AI-driven workout planner [8][9].