Core Insights - Peloton Interactive reported better-than-expected Q4 results for FY2025 and provided a revenue guidance for FY2026 that exceeded expectations [1] - The company plans to cut 6% of its global workforce to enhance cost-saving efforts as part of its turnaround strategy [1] Financial Performance - Q4 earnings per share were $0.05, compared to Wall Street's expectation of a loss of $0.06 per share [1] - Total revenue for the quarter was $606.9 million, a 5.7% year-over-year decline, while analysts had anticipated $579.8 million [1] - The company forecasts FY2026 revenue between $2.4 billion and $2.5 billion, surpassing the analyst estimate of $2.41 billion [1] Cost Management - The company has successfully offset declines in hardware and subscription sales by reducing marketing and R&D expenses, and optimizing its cost structure [1] - Operating expenses decreased by 20% in Q4, with general and administrative expenses down 33% year-over-year [2] - The net profit increased to $21.6 million, marking a turnaround from a loss [2] Profitability Metrics - Gross margin for connected fitness products improved by 900 basis points to 17.3%, contributing to an overall gross margin increase of 560 basis points to 54.1% [2] - The gross profit for this segment grew by 96% to $34.4 million [2] Future Outlook - The company expects that layoffs, indirect cost reductions, and office relocations will save an additional $100 million by the end of the next fiscal year [2] - Cash flow improved from -$551.9 million a year ago to -$118.9 million, with free cash flow increasing from $26 million to $112 million year-over-year [2]