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Peloton Shares Sink After Weak Holiday Quarter and Soft Sales Outlook

The results suggest Peloton's fall product relaunch has yet to revive demand.

Overview

  • Fiscal Q2 revenue of about $656.5–657 million and a $0.09 loss per share missed Wall Street estimates.
  • Peloton guided Q3 revenue to $605–$625 million and trimmed full-year sales to $2.40–$2.44 billion, both below consensus.
  • Paid connected fitness subscriptions fell about 7% year over year to roughly 2.661 million, with holiday demand for the revamped hardware line softer than expected after October price increases.
  • Profitability targets improved as adjusted EBITDA reached $81 million in Q2, with guidance of $120–$135 million for Q3 and $450–$500 million for the full year, supported by January's 11% workforce reduction.
  • Shares dropped roughly 20%–25% to 18‑month lows, and CFO Liz Coddington will leave the company in March.