Peloton Interactive A

Peloton beat expectations in the first fiscal quarter: revenue rose 2% to $559 million, net income climbed from $14 million to $96 million, adjusted EBITDA increased 42% to $168 million, and free cash flow doubled to $143 million. For the holiday quarter management targets revenue of $625–650 million and adjusted EBITDA of $85–100 million; the full-year guidance is $2.3–2.4 billion in revenue and $475–525 million in adjusted EBITDA. Paying subscribers fell 9% in the quarter to 2.475 million and could decline further to 2.425 million, while subscription revenue rose 3% to $411 million thanks to higher prices. Peloton is improving profitability and cash flow but remains vulnerable without clear customer growth and is banking on cheaper treadmills to win new users. » More on deraktionaer.de

Peloton unveiled three new treadmills, including a folding Tread Flex and two Vision models with movement-tracking cameras, expanding its Peloton IQ AI coaching features and integrations with WHOOP, Apple Health, Fitbit and Garmin. The company reported its first full year of GAAP net profitability, cut net debt by 80% to $93 million and generated $378 million in free cash flow, but paid connected fitness subscriptions fell 8.8% year over year to 2.553 million with guidance signaling further declines. Connected Fitness Products gross margin remains low (13.4%) versus 73.6% for subscriptions, so revenue growth depends on stabilizing subscriber trends rather than hardware sales. Market sentiment is cautious: short interest is elevated at 14.48% and the stock trades at a forward P/E of about 4.4, leaving the turnaround contingent on the new hardware driving net subscriber additions. » More on finance.yahoo.com

Peloton introduced the $2,195 folding Tread Flex designed for small spaces alongside upgraded Tread Vision ($3,495) and Tread Plus Vision ($6,695) models. Hardware changes include a folding deck with locking casters for the Flex, improved cushioning and jump buttons on Vision models, and a sled mode on Tread Plus Vision. All treadmills gain Peloton IQ features such as personalized pace, ReRun route playback with automatic incline, and camera-based running analysis for efficiency scoring on camera-enabled units. The company aims to use the broader treadmill lineup and lower-priced Flex to attract new members and drive growth. » More on theverge.com

Peloton shares dropped sharply in premarket trading after Morgan Stanley cut its rating to "Underweight" and reduced its price target, citing a steep decline in gross new customer additions. At the same time, UBS trimmed its price target and cut its EBITDA forecast for 2027 due to higher subscriber churn. Ongoing insider sales intensified the negative sentiment, while the decline was largely company-specific. » More on de.investing.com

Morgan Stanley downgraded Peloton from "Equal Weight" to "Underweight" and cut the price target from $5.00 to $4.50. Analyst Nathan Feather reduced his revenue and EBITDA forecasts for 2027/2028, citing structural headwinds in the fitness market—particularly a shift toward strength training and studios—that are severely constraining new customer acquisition. Gross new adds are roughly 78% below the peak, and a 9% decline in subscriber growth for Connected Fitness is expected in 2026. Feather says the valuation is not a sufficient catalyst and expects only limited impact from a cheaper treadmill before Christmas; new product categories are not expected until around the end of 2027. » More on de.investing.com