Peloton’s results for Q2 reflected ongoing challenges in maintaining subscriber growth but were met with a positive market reaction, driven by better-than-expected revenue and significant improvement in profitability. Management credited the quarter’s performance to higher hardware sales—particularly from both Peloton and Precor products—cost optimization efforts, and a shift toward premium product mix. CFO Liz Coddington emphasized that, “Our successful efforts to expand gross margins, reduce operating expenses and optimize inventory levels enabled us to generate $324 million of free cash flow, an increase of $409 million year-over-year.”
Exercise equipment company Peloton (NASDAQ:PTON) reported Q2 CY2025 results topping the market’s revenue expectations, but sales fell by 5.7% year on year to $606.9 million. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $535 million was less impressive, coming in 3.3% below expectations. Its non-GAAP profit of $0.11 per share was significantly above analysts’ consensus estimates.
Shares of Peloton Interactive Inc (NASDAQ: PTON) traded higher on Monday on continued momentum following the company's fourth-quarter earnings report last week. Here's what investors need to know.
Shares of exercise equipment company Peloton (NASDAQ:PTON)
jumped 4.8% in the morning session after the company reported a surprise second-quarter profit and beat Wall Street's revenue expectations. The connected fitness company reported a surprise second-quarter profit of $0.05 per share, significantly outperforming Wall Street's expectations for a loss of $0.05 per share. Revenue for the period also topped forecasts, coming in at $606.9 million. The positive results were driven by a significant improvement in profitability. Adjusted EBITDA, a measure of core earnings, came in at $140 million, crushing analyst estimates of $83.17 million. Furthermore, the company's operating margin swung from a negative 9.9% in the same quarter last year to a positive 4.9%, highlighting successful cost management efforts as part of its turnaround strategy. While the company's revenue guidance for the next quarter was slightly below expectations, its full-year EBITDA guidance was a bright spot, exceeding analyst forecasts.
Exercise equipment company Peloton (NASDAQ:PTON) reported Q2 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 5.7% year on year to $606.9 million. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $535 million was less impressive, coming in 3.3% below expectations. Its GAAP profit of $0.05 per share was significantly above analysts’ consensus estimates.
According to a CNBC report, the company plans to reduce run-rate expenses by another $100 million in fiscal year 2026, on top of the $200 million it cut in fiscal 2025, half of which will come from trimming the workforce.
