Wall Street couldn’t be convinced by Peloton Interactive Inc (NASDAQ:PTON) upgraded outlook as the fitness-tech stock fell in Thursday’s early deals – instead, Peloton’s larger-than-expected loss took precedence.
At 12 cents, Peloton’s loss per share was double the market’s consensus forecast of 6 cents.
Revenue from the equipment division was down 27%, meanwhile, and paying subscriber numbers were half of what they were a year ago.
Overall, revenue for the quarter was down 13% year-over-year at $624 million, which nonetheless was slightly better than analysts feared, with their consensus estimates of $621 million.
This was the first financials under new CEO Peter Stern, who took the reins in January, and the boss said: “We are making substantial progress in formulating our plans for FY26 and beyond through a rigorous strategic planning process.”
And, in terms of outlook, it’s far to say Peloton is being somewhat supple.
On one hand, Peloton downgrades expectations for its app subscriptions to between 540,000 and 550,000 (approximately a decline of 30,000 users). And, on the other hand, it nudged higher the mid-point forecast for full year revenue by $7.5 million, with a new range pitched at $2.46 billion to $2.47 billion.
Peter Sturn described the level of Peloton's subscriber churn as ‘reflecting continued resilience’.
“During this period of economic uncertainty, we believe Peloton is well-positioned to maintain its leadership within the global fitness and wellness industry,” he added.
“We look forward to sharing more details about our strategy for FY26 and beyond later this calendar year.”
In New York, Peloton stock was down 7.74%, changing hands at $6.44 in early trading.