Peloton Interactive (NASDAQ:PTON) Announces Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Peloton Interactive (NASDAQ:PTON) announced its quarterly earnings results on Thursday. The company reported ($0.09) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.07) by ($0.02), FiscalAI reports. The company had revenue of $656.50 million for the quarter, compared to analysts’ expectations of $675.04 million. Peloton Interactive’s revenue was down 2.5% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.24) earnings per share.

Here are the key takeaways from Peloton Interactive’s conference call:

• Peloton is repositioning from “connected fitness” to a broader “connected wellness” strategy and launched a hardware refresh plus AI personalization—most notably the Cross Training Series and Peloton IQ—to expand cardio+strength and new wellness offerings.
• Profitability and the balance sheet improved materially: Q2 Adjusted EBITDA grew 39% to $81M, free cash flow was $71M, net debt fell 52% to $319M, and management raised full‑year Adjusted EBITDA and gross margin guidance.
• Top‑line softness: Q2 revenue missed guidance by roughly $8M due mainly to fewer-than-expected equipment upgrades by existing members and ~$4M of delivery‑timing delays; full‑year revenue guidance was trimmed by $30M and implies ~3% YoY decline at the midpoint.
• Subscription business showed resilience after a price increase—average net monthly churn was 1.9% (better than feared), paid Connected Fitness subs were 2.661M, and engagement metrics (workout time +7% YoY, 46% adoption of IQ, personalized-plan usage +10%) support retention.
• Leadership note: CFO Liz Coddington will depart at the end of March; management says the company has a stronger financial foundation and has begun a search for her successor, representing a potential short‑term transition risk.

Peloton Interactive Stock Performance

PTON traded down $1.56 during trading on Thursday, hitting $4.35. The stock had a trading volume of 58,363,890 shares, compared to its average volume of 12,662,038. The firm has a market capitalization of $1.82 billion, a P/E ratio of -15.37, a PEG ratio of 1.33 and a beta of 2.41. Peloton Interactive has a twelve month low of $4.30 and a twelve month high of $10.25. The company’s 50-day moving average price is $6.28 and its 200 day moving average price is $7.11.

Peloton Interactive News Summary

Here are the key news stories impacting Peloton Interactive this week:

• Positive Sentiment: Q2 showed margin expansion, tighter cost control and deleveraging (management says profitability is improving), which reduces financial risk and supports cash‑flow improvement. Peloton Misses Q2 Revenue as Equipment Sales Lag, Profitability Improves
• Positive Sentiment: Bullish analyst/feature pieces argue recent price increases, margin gains and halved net debt materially improve FY26 EBITDA and FCF, making PTON look cheaper on an EV/EBITDA basis and more “de‑risked” for value investors. Peloton: Price Increases Pave The Path To Profit Jump
• Positive Sentiment: Unusual options flow — a large intraday surge in call buying — indicates speculative bullish bets that could amplify intraday upside if sentiment or guidance updates shift. (68,007 calls bought vs. typical ~38,600.)
• Neutral Sentiment: Analyst metric reviews and comparisons to estimates are being published to parse the Q2 print and help investors calibrate forward expectations. These pieces summarize unit, subscription and revenue trends but don’t change the headline miss. Peloton (PTON) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
• Neutral Sentiment: Several long‑form bearish analyses re‑examine Peloton’s growth runway and competitive position; useful for risk assessment but not new company disclosures. Peloton Interactive, Inc. (PTON): A Bear Case Theory
• Negative Sentiment: Q2 revenue and EPS missed expectations (revenue of $656.5M vs. ~$675M consensus; EPS -$0.09 vs. -$0.07 expected). Management cited slower equipment upgrades from existing members and longer delivery timelines that delayed revenue recognition — a direct hit to near‑term top‑line. Peloton Q2 Press Release / Earnings
• Negative Sentiment: Peloton issued Q3 revenue guidance below consensus ($605M–$625M vs. ~$638M expected) and signaled likely subscription declines into the quarter, prompting sharp downside to near‑term revenue expectations. Peloton shares sink on earnings miss, soft revenue outlook
• Negative Sentiment: Press coverage highlights member losses and management turnover (CFO departure noted), raising execution risk while the company reshapes product/pricing mix. Peloton Revenue Falls on Declining Subscriptions as CFO Leaves

Insiders Place Their Bets

In other Peloton Interactive news, insider Jennifer Cunningham Cotter sold 131,495 shares of the business’s stock in a transaction that occurred on Thursday, November 20th. The stock was sold at an average price of $6.64, for a total transaction of $873,126.80. Following the transaction, the insider owned 100,269 shares in the company, valued at approximately $665,786.16. The trade was a 56.74% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Nick V. Caldwell sold 25,135 shares of the firm’s stock in a transaction that occurred on Tuesday, January 13th. The shares were sold at an average price of $7.00, for a total value of $175,945.00. Following the completion of the sale, the insider directly owned 739,085 shares of the company’s stock, valued at $5,173,595. This represents a 3.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,107,129 shares of company stock valued at $7,708,694. Corporate insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On Peloton Interactive

A number of hedge funds and other institutional investors have recently bought and sold shares of PTON. Advisory Services Network LLC acquired a new position in shares of Peloton Interactive during the 3rd quarter worth $48,000. Quarry LP acquired a new stake in shares of Peloton Interactive in the third quarter valued at about $71,000. Occudo Quantitative Strategies LP purchased a new stake in Peloton Interactive during the second quarter worth about $74,000. Sivia Capital Partners LLC acquired a new position in Peloton Interactive during the second quarter worth about $92,000. Finally, NewEdge Advisors LLC increased its holdings in Peloton Interactive by 3,132.6% in the first quarter. NewEdge Advisors LLC now owns 15,549 shares of the company’s stock valued at $98,000 after buying an additional 15,068 shares in the last quarter. Institutional investors and hedge funds own 77.01% of the company’s stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on PTON. Macquarie upped their target price on Peloton Interactive from $11.00 to $12.00 and gave the company an “outperform” rating in a research report on Tuesday, November 11th. Citigroup reduced their price objective on Peloton Interactive from $9.50 to $8.25 and set a “neutral” rating for the company in a research note on Thursday, November 20th. Morgan Stanley raised their target price on shares of Peloton Interactive from $6.00 to $6.50 and gave the stock an “equal weight” rating in a research report on Wednesday, November 19th. UBS Group reaffirmed a “buy” rating on shares of Peloton Interactive in a report on Tuesday. Finally, Zacks Research upgraded shares of Peloton Interactive from a “hold” rating to a “strong-buy” rating in a research note on Monday, January 26th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $9.72.

About Peloton Interactive

Peloton Interactive, Inc operates a digital fitness platform that combines connected exercise equipment with live and on-demand workout classes. The company’s core products include stationary bikes (Peloton Bike and Bike+), treadmills (Peloton Tread and Tread+), and the Peloton Row. Each device integrates a touchscreen display that streams instructor-led cycling, running, strength, yoga, meditation and other fitness classes. Peloton generates recurring revenue through subscription plans, which grant users access to its growing library of workouts, performance tracking tools and community features.

Founded in 2012 by John Foley and headquartered in New York City, Peloton set out to deliver an immersive home-fitness experience by blending hardware, software and content.