Peloton Interactive, Inc. (NASDAQ:PTON ) Morgan Stanley Technology, Media & Telecom Conference Call March 4, 2025 2:30 PM ET Company Participants Liz Coddington - Chief Financial Officer Conference Call Participants Nathaniel Feather - Morgan Stanley Nathaniel Feather Okay. Great. We'll get started.
Peloton's initial pandemic-driven success led to overexpansion under CEO John Foley, resulting in a stock crash and his eventual ousting. Post-Foley, Peloton implemented restructuring programs, including job cuts and operational wind-downs, to stabilize the business and improve margins. These measures have been effective, with Peloton raising its FY 2025 Adjusted EBITDA guidance to $300 - $350 million and projecting free cash flow of at least $200 million.
After two strong years in 2023 and 2024, the market is continuing its positive streak in 2025. Amid a favorable backdrop, companies that previously seemed left for dead are now roaring back to relevance.
Peloton Interactive (PTON -5.41%) stock was a pandemic darling. It reached a record high of $162 at the end of 2020, on the back of surging sales for the company's at-home exercise equipment, which helped fitness enthusiasts stay active in the midst of lockdowns and social restrictions.
Peloton (PTON) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Peloton's Q2 results under new CEO Peter Stern showed improved churn rates and raised guidance, boosting shares by over 10%. The company has enhanced gross margins and free cash flow, but still faces net member churn and competition from cheaper alternatives. Innovative new features like Strength+ and targeted race training programs are helping to retain members and maintain Peloton's premium brand.
For Peloton, intensifying efforts to enhance its subscription-based model, reduce member churn and increase engagement are foremost among its goals for 2025. While the company recorded a slight decline in overall subscriptions in its second-quarter results released Thursday (Feb.
The headline numbers for Peloton (PTON) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Peloton (PTON) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.19. This compares to loss of $0.54 per share a year ago.
Peloton Interactive (PTON 3.69%), a leader in connected fitness product offerings, released its Q2 FY2025 earnings report on February 6, 2025.