​Peloton Interactive, Inc. (NASDAQ:PTON) is one of the Best Penny Stocks That Will Skyrocket. On February 10, John Staszak from Argus Research downgraded the stock from Buy to Hold, without disclosing any price targets. Earlier on February 6, Bernie McTernan also reiterated a Hold rating on the stock without disclosing any price target. ​The ratings come after the company released its fiscal Q2 2026 earnings on February 5. During the quarter, Peloton Interactive, Inc. (NASDAQ:PTON) posted $656.5 million ...

Core Insights - Peloton reported a 39% year-over-year growth in adjusted EBITDA for Q2, alongside improved margins and reduced operating expenses due to restructuring efforts [1][4] - The company is transitioning from a connected fitness model to a "connected wellness" approach, targeting the $7 trillion global wellness economy [1] - Peloton's subscription business remains resilient, with 2.661 million paid Connected Fitness subscriptions, despite a 7% year-over-year decline [3][8] Financial Performance - Q2 total revenue was $657 million, consisting of $244 million from Connected Fitness products and $413 million from subscriptions, with a gross margin of 50.5% [14] - Adjusted EBITDA for Q2 was $81 million, an increase of $23 million year-over-year, and the company raised its full-year adjusted EBITDA guidance to $450–$500 million [4][17] - The company lowered its full-year revenue outlook to $2.40–$2.44 billion, a reduction of $30 million from prior guidance, primarily due to weaker equipment sales [3][17] Subscription Metrics - The average monthly churn rate for subscriptions was 1.9%, which is an increase of 50 basis points year-over-year, but better than expected [7] - Workout time per subscription increased by 7% year-over-year, indicating higher engagement levels among users [9] - Peloton IQ, a new feature, saw 46% of active members engaging with its performance insights and recommendations [9][10] Commercial Expansion - The Commercial business unit achieved 10% revenue growth year-over-year, exceeding expectations in both U.S. and international markets [11] - Peloton expanded its retail presence with 10 micro-stores, which have shown to drive significantly higher sales per square foot compared to legacy showrooms [13] - The company is also focusing on partnerships with hotels and enterprises to upgrade to Peloton Pro products [12] Cash Flow and Debt Management - Peloton generated $71 million in free cash flow during Q2, exceeding internal expectations, and ended the quarter with $1.18 billion in unrestricted cash [16] - The company plans to pay down approximately $200 million of zero-percent convertible notes as they come due and is evaluating capital structure optimization [16]

Peloton reported fiscal second-quarter results that missed revenue expectations, reflecting slower-than-anticipated equipment upgrades among existing members and longer delivery timelines that delayed revenue recognition.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access ...

Core Insights - Peloton Interactive Inc. is viewed as a promising stock with significant upside potential despite recent challenges [1] - Citi analyst Ronald Josey has reduced Peloton's price target to $8.25 from $9.50 while maintaining a Neutral rating after the company's FQ1 2026 earnings report [1][3] - The company has lowered its full-year subscriber forecast by 3% due to increased customer turnover [1] Financial Performance - Peloton's total revenue for FQ1 reached $551 million, with $152 million from Connected Fitness products and $398 million from subscription revenue [2] - This revenue represents a year-over-year decline of 6.01%, but it exceeded Street estimates by $9.72 million [2] - The company's EPS for the quarter was $0.06, surpassing guidance by $0.05 [2] Subscriber Metrics - Connected Fitness paid subscriptions totaled 2.732 million in the quarter, reflecting a 6% decrease from the previous year [3] - The average net monthly churn improved to 1.6%, which is better by 0.2% year-over-year [3] - Revenue from Connected Fitness products declined by 5% due to lower equipment sales and deliveries [3] Company Overview - Peloton Interactive Inc. offers fitness and wellness products and services both in North America and internationally [4] - The company provides various connected fitness products, including the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, and Peloton Row [4]

Market Outlook - Matt Powers, managing partner of Powers Advisory Group, expressed optimism about the market, expecting new all-time highs for the S&P 500 index, potentially surpassing 7,000 by year-end [1] - The firm's internal sentiment model indicated extreme pessimism, which historically suggests a market bottom [1] - A significant spike in inverse ETF volume was noted, reaching its highest level in two years, indicating retail capitulation [1] - The median stock was down over 16% from its 52-week high, suggesting a more severe correction for the overall index [1] - Positive seasonal trends combined with technical and sentiment signals lead to a strong end-of-year market outlook [1] Stock Analysis Peloton Interactive Inc. (NASDAQ:PTON) - Peloton's total revenue for FQ1 was $551 million, a decline of 6.01% year-over-year but $9.72 million above estimates [9] - The company reported a decrease in Connected Fitness paid subscriptions to 2.732 million, a 6% drop from the previous year [10] - Despite challenges, the average net monthly churn improved to 1.6%, better by 0.2% year-over-year [10] - The full-year revenue guidance remains unchanged at $2.4 to $2.5 billion [9] Coinbase Global Inc. (NASDAQ:COIN) - Coinbase reported a total trading volume of $295 billion in Q3 2025, a sequential increase of 24% [13] - Total revenue for Q3 was $1.9 billion, a sequential rise of 25%, with net income at $433 million [14] - The company experienced a 37% increase in transaction revenue, reaching $1.0 billion, and a 14% increase in Subscription and Services revenue to $747 million [14] - Analyst Kevin Heal downgraded Coinbase to Hold, citing a valuation issue with the stock trading at 39x expected forward earnings [12]

Core Insights - Fitness stocks are gaining attention, with Garmin, Planet Fitness, Peloton Interactive, Life Time Group, and Xponential Fitness highlighted as key companies to watch [2] Company Summaries - **Garmin (GRMN)**: Designs and manufactures wireless devices, with a fitness segment that includes running watches, cycling products, smartwatches, scales, and fitness accessories. It also offers platforms like Garmin Connect for tracking fitness data [3] - **Planet Fitness (PLNT)**: Operates fitness centers under the Planet Fitness brand, with segments including Franchise, Corporate-Owned Stores, and Equipment. The company franchises in multiple countries including the U.S., Canada, and Australia [4] - **Peloton Interactive (PTON)**: Provides an interactive fitness platform with connected products that stream live and on-demand classes, including various bike and treadmill models [5] - **Life Time Group (LTH)**: Offers health, fitness, and wellness experiences, focusing on designing and operating sports and fitness centers in metropolitan areas across the U.S. and Canada [6] - **Xponential Fitness (XPOF)**: Operates as a boutique fitness franchisor, offering a variety of fitness services under multiple brand names, including Club Pilates and CycleBar [7]

Product Innovation & Strategy - Peloton launched Peloton IQ, an AI-powered personal trainer, along with a new equipment lineup and cross-training series [2][6] - The company is expanding into total wellness, incorporating breathwork and partnerships like the one with the Hospital for Special Surgery for injury prevention and rehabilitation [2][5] - Peloton is focused on being an essential partner in the journey to feeling better and living a better life, emphasizing the quality of life through cardio, strength, mental well-being, diet, and sleep [23][24] Financial Performance & Growth - Peloton has delivered five consecutive quarters of significant free cash flow, indicating disciplined financial management and real profitability [12] - The company anticipates inflecting back toward growth as the year progresses, after a couple of years of regrouping post-pandemic [8][9] - Peloton's stock has almost doubled over the past year, reflecting investor confidence in the company's future [2] Customer Focus & Value Proposition - Peloton is providing existing members with the benefits of Peloton IQ and new features like Breathwork, included in their membership [4][5] - The company emphasizes the value of investing in health, well-being, and longevity through Peloton, offering a great return on that investment [15][16] - Peloton builds products to last and continues to support existing hardware, not engaging in planned obsolescence [11] Competitive Landscape & Market Positioning - Peloton aims to be the go-to solution for various aspects of total health, including cardio, strength, and mental well-being [19][20][21] - The company is carefully considering price elasticity and the value delivered to customers when making pricing decisions [13][14][15]