Peloton Interactive (PTON -3.54%) is falling back into the good graces of the investment community. The company is steadily improving its finances, which is reducing risk.
Peloton's initial pandemic-driven success led to overexpansion under CEO John Foley, resulting in a stock crash and his eventual ousting. Post-Foley, Peloton implemented restructuring programs, including job cuts and operational wind-downs, to stabilize the business and improve margins. These measures have been effective, with Peloton raising its FY 2025 Adjusted EBITDA guidance to $300 - $350 million and projecting free cash flow of at least $200 million.
After two strong years in 2023 and 2024, the market is continuing its positive streak in 2025. Amid a favorable backdrop, companies that previously seemed left for dead are now roaring back to relevance.
Peloton Interactive (PTON -5.41%) stock was a pandemic darling. It reached a record high of $162 at the end of 2020, on the back of surging sales for the company's at-home exercise equipment, which helped fitness enthusiasts stay active in the midst of lockdowns and social restrictions.
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Peloton (PTON) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Peloton's Q2 results under new CEO Peter Stern showed improved churn rates and raised guidance, boosting shares by over 10%. The company has enhanced gross margins and free cash flow, but still faces net member churn and competition from cheaper alternatives. Innovative new features like Strength+ and targeted race training programs are helping to retain members and maintain Peloton's premium brand.
For Peloton, intensifying efforts to enhance its subscription-based model, reduce member churn and increase engagement are foremost among its goals for 2025. While the company recorded a slight decline in overall subscriptions in its second-quarter results released Thursday (Feb.
Start Time: 08:30 January 1, 0000 9:25 AM ET Peloton Interactive, Inc. (NASDAQ:PTON ) Q2 2025 Earnings Conference Call February 06, 2025, 08:30 AM ET Company Participants Peter Stern - President and CEO Liz Coddington - CFO James Marsh - SVP and Head, IR Conference Call Participants Simeon Siegel - BMO Shweta Khajuria - Wolfe Research Curtis Nagle - Bank of America Arpine Kocharyan - UBS Eric Sheridan - Goldman Sachs Lee Horowitz - Deutsche Bank Operator Good day, and welcome to the Peloton Interactive Q2 2025 Earnings Call. At this time, all participants are in a listen-only mode.
Peloton Interactive shares jumped Thursday after the exercise equipment maker's second-quarter revenue and adjusted earnings forecast topped analyst estimates.
The headline numbers for Peloton (PTON) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Peloton Interactive Inc (NASDAQ:PTON) shares surged more than 13% after the fitness company known for its exercise bikes beat sales estimates for the December quarter despite a wider-than-expected loss and boosted its full-year profit outlook. The company reported a net loss for the fiscal second quarter of $92 million or $0.24 per share, down from $195 million or $0.54 per share in the year-ago quarter.