Peloton Interactive receives a hold rating as margin gains are offset by persistent subscriber declines and rising churn. PTON's Q2 saw gross margin improvements—subscription margin rose to 72.1%—driven by price hikes and lower music royalties. Paid Connected Fitness subscriptions fell to ~2.6 million, and churn increased to 1.9%, signaling ongoing demand weakness.
The heavy selling pressure might have exhausted for Peloton (PTON) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.
In her new role, Coddington said she plans to strengthen Palmetto's profit metrics, improve working capital and tighten financial controls.
Peloton's downhill ride continues.
Peloton Interactive ( NASDAQ:PTON ) surged during the pandemic as home fitness demand exploded, with revenue peaking at $4.1 billion in fiscal 2021.
Peloton Interactive, Inc. remains a Buy despite weak Q2 sales, as cost controls and margin improvements drive higher EBITDA and free cash flow guidance. PTON now trades at just 5.2x EV/FY26 adjusted EBITDA, with net debt halved year-over-year, de-risking the entry point for investors. Subscription price hikes and commercial sales growth offset subscriber churn, showcasing resilient brand value and new revenue channels.
Peloton Interactive, Inc. (PTON) Q2 2026 Earnings Call Transcript
The headline numbers for Peloton (PTON) give insight into how the company performed in the quarter ended December 2025, 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 fell about 24% in early trading Thursday after the connected fitness company reported a weaker-than-expected holiday quarter and issued revenue guidance below analysts' forecasts. For its fiscal second quarter ended December 31, 2025, Peloton reported a loss of $0.09 per share, compared with Wall Street expectations for a loss of $0.06 per share.
Peloton's stock falls as the maker of home-fitness products again reported quarterly losses, and as connected-fitness subscriptions fell to a more than four-year low.
Peloton missed Wall Street's expectations on the top and bottom lines and fell short of its internal sales targets during its crucial holiday quarter. The misses come after the connected fitness company overhauled its product assortment and raised prices for both hardware and subscriptions.
Peloton is leaning into wellness to fuel its recovery. It has a four-pronged turnaround plan with many moving parts, and it's demonstrating some progress.