🔹 Revenue: $673.9M (Est. $651.77M) 🟢
🔹 EPS: ($0.24) (Est. ($0.20)) 🔴
🔹 Gross Margin: 47.2% (Est. 47.19%)
Guidance:
🔸 Q3'25 Revenue: $605M - $625M (Est. $652.5M) 😕
🔸 FY25 Revenue: $2.43B - $2.48B (Est. $2.47B)😕
🔸 FY25 Adjusted EBITDA: $300M - $350M (RAISED from $240M - $290M) 🟢
🔸 FY25 Free Cash Flow: At least $200M (RAISED from $125M) 🟢
Segment Revenue:
🔹 Connected Fitness Products: $253.4M; DOWN -21% YoY
🔹 Subscription Revenue: $420.6M; DOWN -1% YoY
Operational Metrics:
🔹 Total Members: 6.2M; DOWN -4% YoY
🔹 Paid Connected Fitness Subscriptions: 2.88M; DOWN -4% YoY
🔹 Paid App Subscriptions: 579K; DOWN -19% YoY
🔹 Average Monthly Churn: 1.4% (DOWN 50 bps QoQ)
Financial Performance:
🔹 SG&A: $638M; DOWN -25% YoY
🔹 Operating Loss: $45.9M (Improved by $141.2M YoY)
🔹 Adjusted EBITDA: $58.4M (UP $140.1M YoY)
🔹 Free Cash Flow: $106M (UP $143.2M YoY)
Key Updates:
🔹 Stronger Engagement: 2M+ users completed Strength workouts
🔹 Improved Hardware Margins: First double-digit Connected Fitness Products margin (12.9%) in 3 years
🔹 Retail Expansion: Costco partnership outperformed all other third-party retail channels
🔹 Debt Reduction: Net debt down 30% YoY
CEO: "We are sharpening execution on product innovation, customer engagement, and cost optimization to drive sustainable growth."