Despite another drop in revenue, Peloton CEO Peter Stern said the fitness company delivered results at the “high end of or above guidance” across its core metrics, as it works to regain momentum and sharpen its strategic focus.
Stern, who joined Peloton at the start of 2024, outlined the company’s priorities going forward: improving hardware, software, and instructional quality; broadening product distribution; strengthening member engagement; and enhancing operations to boost competitiveness.
Once known primarily for its stationary bikes, Peloton is now aiming to expand its broader cardio suite.
The company reported a 5% year-over-year increase in running workouts and an 11% rise in walking workouts during the quarter.
While cardio remains central to the brand, Peloton is investing in a more holistic offering that includes strength training, stretching, and meditation.
The company is also continuing to execute on a cost restructuring plan, coinciding with significant leadership changes.
In addition to Stern’s appointment, Peloton’s chief marketing officer exited the company at the end of April. Marketing responsibilities will now be split between two roles: chief marketing officer and chief communications officer.
Executives said Thursday the company is actively recruiting for both positions, along with a new chief information officer.
Peloton updated its full-year guidance, forecasting a 12% decline in paid app subscriptions at the midpoint, steeper than its previous projection of a 7% drop.
However, it raised its outlook for adjusted EBITDA to a range of $330 million to $350 million, up from a previous floor of $300 million.
The company also reaffirmed its expectation of approximately $250 million in free cash flow for the full year.
That figure includes a $5 million anticipated hit in the fourth quarter due to tariffs. Both Peloton and Precor-branded equipment face a 25% tariff on aluminum content, and additional duties apply to Precor and apparel products sourced from China, executives said.
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