Thu, 06 Feb 2025

Thu, 06 Feb 2025 Shares of Peloton surge 12% as it edges toward profitability, posts better than expected sales

Peloton has shifted its focus to boosting profitability at the expense of growing sales by cutting marketing and other administraitive costs.
Peloton's Second Quarter Results:
* Net loss: $92 million (down from $195 million last year)
* Sales: $674 million (down 9% from last year)
* Adjusted EBITDA: $58.4 million (more than double the expected $26.7 million) Guidance for Current Quarter:
* Sales: between $605 million and $625 million (worse than expected)
* Adjusted EBITDA: between $70 million and $85 million (better than expected) Fiscal 2025 Revenue Expectations:
* Between $2.43 billion and $2.48 billion (in line with expectations) New CEO Peter Stern's Plan:
* Focus on profitability and cost reduction
* Reduction of costs in marketing, administrative, and research and development areas
* Goal to reach double-digit connected fitness gross margin Share Price:
* Peloton shares closed more than 12% higher after the earnings call.
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