Core Viewpoint - Peloton has posted a profit for its fiscal fourth quarter, surprising the market, and is implementing strategies focused on cost reductions and growth [2][3]. Financial Performance - The company reported a net income of $21.6 million for the three-month period ending June 30, compared to a loss of $30.5 million in the previous year, with sales declining by 6% year-on-year to $607 million [4]. - Connected fitness revenue for Q4 was $198.6 million, exceeding projections of $170.3 million, while the gross margin for hardware improved to 17.3%, up 9% from the previous year [10]. Cost Reduction Strategies - Peloton plans to reduce run-rate expenses by an additional $100 million in fiscal 2026, building on the $200 million already cut in fiscal 2025, with half of the reductions coming from indirect costs and the other half from a 6% reduction in staff levels [5][6]. - The company is launching a cost restructuring plan aimed at achieving at least $100 million in savings by the end of FY26 [6]. Store Strategy - Peloton is shifting its focus from larger stores, reducing its portfolio from 37 to 13, and plans to expand its micro-stores from one to ten [4][10]. Debt Management - The company restructured its debt last year, resulting in a net debt decline of $343 million, a 43% drop year-on-year, bringing net debt to $459 million [9]. Future Projections - For the current quarter, Peloton forecasts sales between $525 million and $545 million, which is below analyst expectations of $560 million, but for the full year, projections align with expectations at between $2.4 billion and $2.5 billion [9]. Market Response - Investors reacted positively to the announcements and figures, indicating that the strategy under CEO Peter Stern is beginning to show results, despite the share value being 20% off from the start of the year [7]. Tariff Impact - The new 50% tariffs on aluminum are expected to impact free cash flow by $65 million, prompting the company to adjust promotions and pricing strategies [11]. Global Expansion Plans - Peloton aims to introduce its brand globally through partnerships, focusing on local experiences and leveraging AI for content delivery [12].

INVESTOR PRESENTATION May 2024 Disclaimer The information contained in this presentation is being provided to you for informational purposes only and does not constitute legal, tax, investment, accounting or other advice by Peloton Interactive, Inc. ("Peloton", "we", "us" or the "Company") or any other party and may not be relied upon as such. This presentation does not constitute an offer to sell or a solicitation of an offer to make an investment in the Company, including the purchase of any securities of ...