🔹 Adj EPS: -$0.12 (Est. -$0.07) 🔴
🔹 Revenue: $624M (Est. $623.0M) 🟢; DOWN -13% YoY
🔹 Adj EBITDA: $89.4M (Est. $85M) 🟢; UP +1,434% YoY
Full-Year FY25 Guidance (Updated)
🔹 Revenue: $2.455B–$2.47B (Est. $2.46B) 🟡
🔹 Adj EBITDA: $330M–$350M (Prior: $300M–$350M) 🟢
🔹 Connected Fitness Subscriptions: 2.77M–2.79M (Prior: 2.75M)
🔹 App Subscriptions: 0.54M–0.55M (DOWN -12% YoY)
🔹 Total Gross Margin: 50.0% (vs. 44.7% FY24); +530 bps YoY
🔹 Free Cash Flow: ~$250M (Including ~$5M headwind from tariffs)
Segment Performance
Subscription
🔹 Revenue: $418.5M; DOWN -4% YoY
🔹 Gross Margin: 69.0% (vs. 68.1% YoY)
🔹 Contribution Margin: 72.9% (vs. 72.3% YoY)
🔹 Ending Paid Connected Fitness Subscriptions: 2.88M; DOWN -6% YoY
🔹 Avg Monthly Churn: 1.2% (Flat YoY)
Connected Fitness Products
🔹 Revenue: $205.5M; DOWN -27% YoY
🔹 Gross Margin: 14.3% (vs. 4.2% YoY)
Other Key Metrics:
🔹 Free Cash Flow: $94.7M
🔹 Operating Expenses: $350.5M; DOWN -23% YoY
🔹 Net Loss: -$47.7M; Improvement from -$167.3M YoY
Strategic Updates
🔸 Subscription growth is the core strategy, offsetting hardware softness
🔸 New CEO Peter Stern (ex-Apple & Ford) is executing a pivot to software and recurring revenue
🔸 Marketing cut -46% YoY, yet hardware sales decline was less severe at -27%
🔸 300 bps YoY increase in men joining Peloton
🔸 70,000 members used newly launched kettlebell training
🔸 Nearly 500,000 users started AI-powered Personalized Plans
🔸 Expanded reach via Hilton hotels, Amazon, and a UT Austin campus studio
🔸 International expansion supported by AI-driven subtitles and localized campaigns
CEO Peter Stern Commentary
🔸 “We delivered at the high end or above on all key Q3 metrics. Our shift toward subscriptions is working, and our cost structure is leaner.”