Peloton Interactive (NASDAQ:PTON) Announces Earnings Results, Misses Estimates By $0.02 EPS

Peloton Interactive (NASDAQ:PTON) issued its quarterly earnings data on Thursday. The company reported ($0.09) earnings per share for the quarter, missing the consensus estimate of ($0.07) by ($0.02), FiscalAI reports. The business had revenue of $656.50 million for the quarter, compared to analyst estimates of $675.04 million. The firm’s quarterly revenue was down 2.5% on a year-over-year basis. During the same period last year, the business earned ($0.24) EPS.

Here are the key takeaways from Peloton Interactive’s conference call:

• Peloton is repositioning from “connected fitness” to a broader “connected wellness” strategy and launched a hardware refresh plus AI personalization—most notably the Cross Training Series and Peloton IQ—to expand cardio+strength and new wellness offerings.
• Profitability and the balance sheet improved materially: Q2 Adjusted EBITDA grew 39% to $81M, free cash flow was $71M, net debt fell 52% to $319M, and management raised full‑year Adjusted EBITDA and gross margin guidance.
• Top‑line softness: Q2 revenue missed guidance by roughly $8M due mainly to fewer-than-expected equipment upgrades by existing members and ~$4M of delivery‑timing delays; full‑year revenue guidance was trimmed by $30M and implies ~3% YoY decline at the midpoint.
• Subscription business showed resilience after a price increase—average net monthly churn was 1.9% (better than feared), paid Connected Fitness subs were 2.661M, and engagement metrics (workout time +7% YoY, 46% adoption of IQ, personalized-plan usage +10%) support retention.
• Leadership note: CFO Liz Coddington will depart at the end of March; management says the company has a stronger financial foundation and has begun a search for her successor, representing a potential short‑term transition risk.

Peloton Interactive Stock Performance

Shares of PTON opened at $4.63 on Friday. Peloton Interactive has a 52-week low of $4.09 and a 52-week high of $10.25. The business’s fifty day moving average is $6.19 and its 200-day moving average is $7.08. The firm has a market cap of $1.93 billion, a price-to-earnings ratio of -35.62, a PEG ratio of 0.97 and a beta of 2.41.

Key Stories Impacting Peloton Interactive

Here are the key news stories impacting Peloton Interactive this week:

• Positive Sentiment: Truist kept a “buy” rating and cut its price target to $9, which still implies substantial upside from current levels — a signal that at least some analysts see recovery potential. Benzinga
• Positive Sentiment: Bull case: management’s cost cuts, subscription price increases and margin expansion are improving EBITDA and cash flow, which some investors view as de‑risking the turnaround despite soft top‑line trends. Seeking Alpha
• Positive Sentiment: Unusually large call‑option volume was noted (about 68,000 calls), indicating speculative bullish interest or hedging activity that can amplify intraday moves.
• Neutral Sentiment: Full Q2 earnings and conference call transcripts are available for detail review — useful for investors who want to parse management commentary on subscriptions, product cadence and delivery timing. Earnings Transcript (Yahoo)
• Negative Sentiment: Peloton reported Q2 revenue and EPS below expectations and issued revenue guidance below consensus, which prompted the initial sell‑off. Yahoo: Shares Tumble
• Negative Sentiment: CFO Liz Coddington is leaving for Palmetto, creating near‑term leadership uncertainty at a sensitive time for the turnaround. WSJ
• Negative Sentiment: Several firms trimmed price targets or ratings (JPMorgan lowered its PT to $6 and moved to neutral; Telsey cut to $6 and to market perform), reflecting reduced near‑term confidence among some analysts. Benzinga
• Negative Sentiment: Market reaction: steep intraday/near‑term selling followed the earnings print and weak outlook, amplified by commentary about declining subscription trends and slower equipment upgrades. Barron’s

Analysts Set New Price Targets

A number of research firms have recently weighed in on PTON. Zacks Research upgraded shares of Peloton Interactive from a “hold” rating to a “strong-buy” rating in a research report on Monday, January 26th. Citigroup lowered their price objective on Peloton Interactive from $9.50 to $8.25 and set a “neutral” rating on the stock in a research note on Thursday, November 20th. Macquarie Infrastructure upped their target price on Peloton Interactive from $11.00 to $12.00 and gave the company an “outperform” rating in a research report on Tuesday, November 11th. Morgan Stanley increased their target price on Peloton Interactive from $6.00 to $6.50 and gave the stock an “equal weight” rating in a report on Wednesday, November 19th. Finally, Guggenheim initiated coverage on Peloton Interactive in a research note on Wednesday, December 10th. They issued a “neutral” rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Peloton Interactive has an average rating of “Moderate Buy” and a consensus price target of $9.26.

Insider Buying and Selling at Peloton Interactive

In related news, CAO Saqib Baig sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, January 13th. The stock was sold at an average price of $6.87, for a total value of $68,700.00. Following the sale, the chief accounting officer directly owned 170,665 shares of the company’s stock, valued at $1,172,468.55. This trade represents a 5.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CFO Elizabeth F. Coddington sold 21,820 shares of Peloton Interactive stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $6.31, for a total value of $137,684.20. Following the completion of the transaction, the chief financial officer owned 346,535 shares in the company, valued at approximately $2,186,635.85. This represents a 5.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 1,107,129 shares of company stock worth $7,708,694 over the last quarter. 1.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Peloton Interactive

Institutional investors have recently added to or reduced their stakes in the stock. Ameriprise Financial Inc. boosted its position in Peloton Interactive by 5,654.6% in the third quarter. Ameriprise Financial Inc. now owns 1,705,661 shares of the company’s stock valued at $15,351,000 after buying an additional 1,676,021 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of Peloton Interactive by 27.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 7,056,642 shares of the company’s stock valued at $44,598,000 after acquiring an additional 1,503,680 shares during the last quarter. Woodline Partners LP acquired a new stake in shares of Peloton Interactive during the 3rd quarter valued at $11,417,000. Alliancebernstein L.P. grew its position in Peloton Interactive by 294.4% during the 3rd quarter. Alliancebernstein L.P. now owns 1,596,454 shares of the company’s stock worth $14,368,000 after acquiring an additional 1,191,724 shares during the last quarter. Finally, Orion Porfolio Solutions LLC increased its holdings in Peloton Interactive by 6,414.4% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 789,415 shares of the company’s stock worth $5,479,000 after purchasing an additional 777,297 shares in the last quarter. 77.01% of the stock is currently owned by institutional investors and hedge funds.

Peloton Interactive Company Profile

Peloton Interactive, Inc operates a digital fitness platform that combines connected exercise equipment with live and on-demand workout classes. The company’s core products include stationary bikes (Peloton Bike and Bike+), treadmills (Peloton Tread and Tread+), and the Peloton Row. Each device integrates a touchscreen display that streams instructor-led cycling, running, strength, yoga, meditation and other fitness classes. Peloton generates recurring revenue through subscription plans, which grant users access to its growing library of workouts, performance tracking tools and community features.

Founded in 2012 by John Foley and headquartered in New York City, Peloton set out to deliver an immersive home-fitness experience by blending hardware, software and content.