Core Viewpoint - Peloton Interactive's stock has significantly declined, trading 96% below its peak in January 2021, despite a 120% increase over the past year, raising questions about its potential for long-term wealth generation for investors [1]. Financial Performance - Peloton's net loss reached $2.8 billion in fiscal 2022, indicating struggles with profitability [3]. - In Q3 2025, Peloton reported a net loss of $48 million, a reduction from $167 million in the same quarter the previous year, and is on track to achieve $200 million in annual cost savings [4]. - The company's net debt decreased by 35% year-over-year to $585 million as of March 31 [5]. Demand Challenges - Peloton is facing a significant decline in demand post-pandemic, with Q3 revenue at $624 million, down 13% year-over-year and half of the revenue from the same period four years ago [9]. - The number of connected-fitness subscribers and paid digital app subscribers has also decreased compared to Q3 2024 [9]. Market Valuation - Peloton's price-to-sales ratio is currently at 1.1, indicating market pessimism about its business outlook, and is 94% below its peak valuation from January 2021 [11]. - The current market capitalization of Peloton is $2.9 billion, a stark contrast to its previous valuation of $49.3 billion [12]. Investment Outlook - Despite the low valuation, Peloton is viewed as a potential value trap, with limited chances of turning investors into millionaires over the next decade [13].