Peloton Interactive (NASDAQ:PTON) Announces Quarterly 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 (EPS) for the quarter, missing the consensus estimate of ($0.07) by ($0.02), FiscalAI reports. The company had revenue of $656.50 million during the quarter, compared to analysts’ expectations of $675.04 million. The business’s revenue was down 2.5% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.24) earnings per share.

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 Down 26.4%

Shares of NASDAQ:PTON traded down $1.56 during trading on Thursday, reaching $4.35. The stock had a trading volume of 58,363,890 shares, compared to its average volume of 12,662,038. The stock has a market cap of $1.82 billion, a P/E ratio of -15.37, a PEG ratio of 1.33 and a beta of 2.41. The business has a fifty day moving average price of $6.28 and a 200-day moving average price of $7.11. Peloton Interactive has a fifty-two week low of $4.30 and a fifty-two week high of $10.25.

Wall Street Analysts Forecast Growth

PTON has been the subject of several research reports. Truist Financial lifted their price target on Peloton Interactive from $11.00 to $12.00 and gave the stock a “buy” rating in a research note on Friday, November 7th. UBS Group restated a “buy” rating on shares of Peloton Interactive in a report on Tuesday. Wolfe Research set a $9.00 target price on shares of Peloton Interactive in a research report on Friday, January 30th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Peloton Interactive in a research report on Friday, January 9th. Finally, Wall Street Zen raised shares of Peloton Interactive from a “hold” rating to a “buy” rating in a research note on Saturday, January 31st. One investment 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 company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $9.72.

Insider Buying and Selling

In related news, insider Jennifer Cunningham Cotter sold 148,432 shares of the company’s stock in a transaction on Monday, November 17th. The stock was sold at an average price of $7.22, for a total value of $1,071,679.04. Following the completion of the transaction, the insider directly owned 231,764 shares in the company, valued at approximately $1,673,336.08. This represents a 39.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Dion C. Sanders sold 124,047 shares of the stock in a transaction dated Monday, November 17th. The stock was sold at an average price of $7.22, for a total value of $895,619.34. Following the transaction, the insider owned 111,036 shares in the company, valued at $801,679.92. This trade represents a 52.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,107,129 shares of company stock worth $7,708,694 in the last three months. 1.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Advisory Services Network LLC purchased a new stake in Peloton Interactive in the third quarter valued at approximately $48,000. Quarry LP acquired a new position in shares of Peloton Interactive in the 3rd quarter valued at $71,000. Occudo Quantitative Strategies LP acquired a new position in shares of Peloton Interactive in the 2nd quarter valued at $74,000. Sivia Capital Partners LLC purchased a new stake in shares of Peloton Interactive during the 2nd quarter valued at $92,000. Finally, NewEdge Advisors LLC increased its holdings in shares of Peloton Interactive by 3,132.6% during the 1st quarter. NewEdge Advisors LLC now owns 15,549 shares of the company’s stock worth $98,000 after buying an additional 15,068 shares during the last quarter. 77.01% of the stock is currently owned by hedge funds and other institutional investors.

More Peloton Interactive News

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

• Positive Sentiment: Q2 showed margin expansion, tighter cost control and deleveraging (management says profitability is improving), which reduces financial risk and supports cash?flow improvement. Peloton Misses Q2 Revenue as Equipment Sales Lag, Profitability Improves
• Positive Sentiment: Bullish analyst/feature pieces argue recent price increases, margin gains and halved net debt materially improve FY26 EBITDA and FCF, making PTON look cheaper on an EV/EBITDA basis and more “de?risked” for value investors. Peloton: Price Increases Pave The Path To Profit Jump
• Positive Sentiment: Unusual options flow — a large intraday surge in call buying — indicates speculative bullish bets that could amplify intraday upside if sentiment or guidance updates shift. (68,007 calls bought vs. typical ~38,600.)
• Neutral Sentiment: Analyst metric reviews and comparisons to estimates are being published to parse the Q2 print and help investors calibrate forward expectations. These pieces summarize unit, subscription and revenue trends but don’t change the headline miss. Peloton (PTON) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
• Neutral Sentiment: Several long?form bearish analyses re?examine Peloton’s growth runway and competitive position; useful for risk assessment but not new company disclosures. Peloton Interactive, Inc. (PTON): A Bear Case Theory
• Negative Sentiment: Q2 revenue and EPS missed expectations (revenue of $656.5M vs. ~$675M consensus; EPS -$0.09 vs. -$0.07 expected). Management cited slower equipment upgrades from existing members and longer delivery timelines that delayed revenue recognition — a direct hit to near?term top?line. Peloton Q2 Press Release / Earnings
• Negative Sentiment: Peloton issued Q3 revenue guidance below consensus ($605M–$625M vs. ~$638M expected) and signaled likely subscription declines into the quarter, prompting sharp downside to near?term revenue expectations. Peloton shares sink on earnings miss, soft revenue outlook
• Negative Sentiment: Press coverage highlights member losses and management turnover (CFO departure noted), raising execution risk while the company reshapes product/pricing mix. Peloton Revenue Falls on Declining Subscriptions as CFO Leaves

About Peloton Interactive

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.