Core Insights - Peloton Interactive reported a significant insider sale by Chief Product Officer Nick V. Caldwell amid a year of declining share prices, with a notable 33.90% drop over the past year [1][9]. Transaction Summary - Caldwell exercised 115,741 stock options and sold 64,617 shares for approximately $401,300, leaving him with 839,982 shares valued at around $5.2 million post-transaction [2][4]. Company Overview - Peloton operates a direct-to-consumer business model, offering connected fitness equipment and digital fitness subscriptions, generating revenue from hardware sales and recurring membership fees [5][7]. - As of December 16, 2025, Peloton's stock price was $6.21, with a market capitalization of $2.47 billion and a trailing twelve-month (TTM) revenue of $2.46 billion, but a net income loss of $104.2 million [4]. Market Context - The sale aligns with Caldwell's historical trading patterns, reflecting a median transaction size consistent with his recent activity, and was primarily driven by liquidity needs related to tax obligations from restricted share units [6][8]. - The transaction occurred during a period of significant share price decline, emphasizing the need for liquidity rather than discretionary portfolio management [6][9]. Future Outlook - Management is optimistic about upcoming product launches, including a new equipment lineup and Peloton IQ, an AI-powered platform aimed at enhancing user experience and profitability [10].

Core Insights - Peloton Interactive, Inc. reported first-quarter earnings that exceeded analyst expectations on both revenue and earnings per share [1][2] Financial Performance - Quarterly earnings were three cents per share, surpassing the consensus estimate of one cent [2] - Quarterly revenue reached $550.8 million, exceeding the Street estimate of $539.81 million [2] Operational Highlights - The company emphasized disciplined execution and focus leading up to the launch of new equipment and Peloton IQ, as stated by CEO Peter Stern [3] - Peloton's gross margin was reported at 51.5%, which is a decrease of 30 basis points year-over-year and 50 basis points below guidance, attributed to a $13.5 million accrual for Bike+ seat post inventory costs [5] Subscription Metrics - The total number of paid connected fitness subscriptions was 2.732 million, reflecting a decrease of 164,000 or 6% year-over-year, but still 2,000 above the high end of the guidance range [5] Market Reaction - Following the earnings report, Peloton's stock price increased by 10.86%, reaching $7.44 in extended trading [4]

Company Performance & Strategy - Peloton's global subscriptions reached 37 million[13] - The company's FY2018-FY2023 revenue CAGR was 45%[13] - Peloton aims to achieve $200 million in cost savings by the end of fiscal year 2025[56] - A 15% headcount reduction is expected to contribute ~$100 million to the cost savings[57, 58] - The company expects to achieve modest positive free cash flow in Q4[64] Market Position & User Engagement - Peloton holds 74% share of total connected fitness subscriptions[28] - Peloton accounts for 42% of connected fitness hardware revenue[28] - The average monthly workouts per paid connected fitness subscription is 13+[38] - Paid Connected Fitness Subscriptions grew from 245,000 in FY2018 to 3056,000 in 3FQ24[33] - Peloton App holds 17% share of App Store Revenue[28]

Core Insights - Peloton Interactive, Inc. (PTON) shares have increased by 21.6% over the past three months, outperforming the Zacks Leisure and Recreation Products industry's growth of 13.2% and the Consumer Discretionary sector's rise of 13.5% [1][2] - Investor sentiment has improved due to Peloton's turnaround efforts and focus on cost efficiency, including the launch of a "Repowered" marketplace for refurbished products [2][6] - The company is currently trading 32.3% below its 52-week high of $10.90, raising questions about future investment [7] Performance Metrics - Peloton's subscription revenues now account for nearly 70% of total sales, indicating a shift towards a profitability-driven recovery [8] - The company added 5,000 net Connected Fitness subscriptions in the fiscal third quarter, maintaining a low churn rate of 1.2% despite a 27% decline in hardware sales [9][10] - Marketing spend has decreased by 46% year over year, improving customer acquisition metrics and driving higher attach rates for Tread sales [11] Strategic Initiatives - Peloton is implementing new retail formats and expanding through university partnerships and commercial installations, which are expected to lower customer acquisition costs [12] - The "Find Your Power" marketing campaign has broadened the company's appeal, particularly among male users [11] Challenges and Risks - Hardware revenues fell by 27% year over year, raising concerns about demand for premium fitness equipment [13] - Competitive pressures from digital fitness alternatives are increasing, making subscriber growth more challenging [14] - Leadership transitions with multiple key executive roles unfilled may hinder strategic execution [15] Financial Outlook - Earnings per share (EPS) estimates for fiscal 2025 have been revised downward from a loss of 33 cents to a loss of 41 cents, reflecting declining analyst confidence [16] - Peloton's stock is trading at a forward price-to-sales (P/S) multiple of 1.18X, significantly below the industry average of 4.95X, indicating a potentially attractive investment opportunity [19] Conclusion - Peloton is showing operational improvements through cost control and growing subscription revenue, but challenges in hardware sales and leadership gaps remain [25][26] - The mixed outlook suggests that investors may consider holding existing positions rather than pursuing new investments at this time [26]

Financial Data and Key Metrics Changes - The company reported total revenue of $624 million in Q3, exceeding guidance by $9 million, with Connected Fitness products revenue at $205 million and subscription revenue at $419 million [26][32] - Paid Connected Fitness subscriptions increased by 5,000 in the quarter, totaling 2,880,000, but represented a 6% decline year over year [23][24] - Adjusted EBITDA was $89 million, surpassing guidance by $4 million and showing an $84 million improvement year over year [30][32] - Free cash flow for the quarter was $95 million, a decrease of $11 million quarter over quarter but an increase of $86 million year over year [31][32] Business Line Data and Key Metrics Changes - Connected Fitness products revenue decreased by $74 million or 27% year over year, driven by lower sales across all product categories [26] - Subscription revenue decreased by $19 million or 4% year over year, attributed to lower paid Connected Fitness and app subscriptions [26] - The company saw a 5% year over year growth in running workouts and an 11% growth in walking workouts, indicating increased engagement with cardio products [9] Market Data and Key Metrics Changes - The company experienced year over year growth in paid Connected Fitness subscriptions in international markets during Q3 [15] - The US market saw a positive impact from Amazon's seasonal sales events, contributing to hardware sales growth [15] Company Strategy and Development Direction - The company aims to improve member outcomes by enhancing equipment, software, and instruction, focusing on delivering better cardio experiences and a holistic wellness ecosystem [6][8] - The strategy includes meeting members in various locations, including retail stores and gyms, and expanding internationally [12][15] - The company is committed to operating with business excellence, optimizing pricing, and reducing costs to enhance competitiveness [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting progress in unit economics and profitability, with a focus on long-term shareholder value [5][6] - The company acknowledged macroeconomic uncertainties but noted resilience in the subscription business, which remains a significant revenue driver [65][68] Other Important Information - The company is on track to achieve $200 million in annualized cost savings by the end of fiscal year 2025, contributing to improved profitability [21][29] - The management team has undergone changes to enhance innovation and operational efficiency, including the appointment of a new COO and CCO [20][21] Q&A Session Summary Question: How is AI being incorporated into Peloton's future? - Management highlighted the use of AI to enhance member support and improve translation capabilities, allowing for personalized coaching and better member engagement [38][41] Question: When will Peloton expand into new markets? - The company is focused on growing its presence in existing international markets before considering further expansion, with plans to explore adjacent markets starting next year [43][45] Question: What impact is the broader consumer slowdown having on the business? - Management noted some softness in sales but emphasized the resilience of the subscription business and the availability of lower-priced entry options for price-sensitive customers [65][68] Question: What are the plans for improving the marketing strategy? - The company is taking a holistic approach to marketing, focusing on customer lifecycle management and optimizing marketing spend to drive subscriber acquisition and retention [79][80] Question: What is the outlook for fiscal year 2026 free cash flow? - Management indicated that while they expect meaningful positive free cash flow in fiscal year 2026, they are not providing specific guidance at this time [84]

Financial Data and Key Metrics Changes - Total revenue for Q3 was $624 million, exceeding guidance by $9 million, with Connected Fitness products revenue at $205 million and subscription revenue at $419 million [26][32] - Paid Connected Fitness subscriptions increased by 5,000 in the quarter, totaling 2,880,000, but represented a 6% decline year over year [24][26] - Adjusted EBITDA was $89 million, $4 million above guidance and an $84 million improvement year over year [30][32] - Free cash flow for Q3 was $95 million, a decrease of $11 million quarter over quarter but an increase of $86 million year over year [31][32] - Net debt reduced by $312 million or 35% year over year to $585 million [31][32] Business Line Data and Key Metrics Changes - Connected Fitness products revenue decreased by $74 million or 27% year over year, driven by lower sales across all product categories [26] - Subscription revenue decreased by $19 million or 4% year over year, impacted by lower paid Connected Fitness and app subscriptions [26] - Average net monthly churn for paid Connected Fitness subscriptions was 1.2%, consistent with the previous year [24][25] Market Data and Key Metrics Changes - The company observed year over year growth in running workouts by 5% and walking workouts by 11% [10] - Engagement with new features, such as pace targets on treadmills, improved significantly, with over 80% of tread users utilizing pace targets [10] Company Strategy and Development Direction - The company aims to improve member outcomes through better equipment, software, and instruction, while also focusing on member retention and operational excellence [6][7] - Plans to expand presence in retail, gyms, and international markets, with a pilot program launched with PRECORT to bring Peloton classes to commercial gyms [13][15] - The company is focusing on cost reduction, tracking ahead of a $200 million cost restructuring plan [22][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, highlighting the importance of improving unit economics and member satisfaction [5][32] - The company is raising guidance for ending paid Connected Fitness subscriptions, total revenue, and adjusted EBITDA for the fiscal year [32][33] - Management noted resilience in the subscription business despite macroeconomic uncertainties, with a focus on maintaining strong retention rates [68][70] Other Important Information - The company is implementing AI to enhance member support and personalize coaching experiences [39][42] - A new leadership team is being established to drive innovation and improve operational efficiency [21][60] Q&A Session Summary Question: How is AI being incorporated into Peloton's future? - AI is being used to enhance member support and improve translation capabilities, allowing for personalized coaching plans [39][42] Question: When will Peloton expand into new markets? - Current focus is on growing existing international markets before expanding further, with plans to explore adjacent markets next year [44][46] Question: What is the impact of broader consumer slowdown on the business? - The business remains resilient, with strong subscription retention despite some softness in sales [68][70] Question: How does the company plan to return to revenue growth? - The strategy includes improving member outcomes, expanding presence, and increasing member lifetime value [94][95] Question: What are the plans for the balance sheet going forward? - The company aims to continue deleveraging while exploring growth opportunities and maintaining sufficient cash reserves [98][99]

(State or Other Jurisdiction of Incorporation or Organization) Delaware 3600 82-1432916 (Primary Standard Industrial Classification Code Number) 1005 Congress Avenue Suite 925 Austin, Texas 78701 (512) 885-0035 (I.R.S. Employer Identification No.) As filed with the Securities and Exchange Commission on June 27, 2024. Registration No. 333-280410 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Amendment No. 1 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 INTERACTIVE ST ...

As filed with the Securities and Exchange Commission on June 21, 2024. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 INTERACTIVE STRENGTH INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) (Primary Standard Industrial Classification Code Number) Delaware 3600 82-1432916 (I.R.S. Employer Identification No.) 1005 Congress Avenue Suite 925 Austin, Texa ...

As filed with the Securities and Exchange Commission on January 11, 2024 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 INTERACTIVE STRENGTH INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation or Organization) Davina K. Kaile, Esq. Pillsbury Winthrop Shaw Pittman LLP 2550 Hanover Street Palo Alto, CA 94304 Telephone: (650) 233-4500 Approximate da ...

Table of Contents As filed with the Securities and Exchange Commission on December 22, 2023 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 INTERACTIVE STRENGTH INC. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorporation Organization) Delaware 3600 82-1432916 (Primary Standard Industrial Classification Code Number) 1005 Congress Avenue (I.R.S. Employer Id ...