The earnings call highlighted significant progress in cost savings, profitability, and a strong subscription business, while addressing challenges like declining hardware revenue and high churn rates. The appointment of a new CEO with a proven track record adds to a positive outlook.

Company Guidance

During Peloton's Q1 2025 earnings call, the management reiterated their fiscal 2025 financial goals, emphasizing a cost restructuring plan aimed at over $200 million in run-rate cost savings by the end of FY '25. They reported $13 million in GAAP operating income, $11 million in free cash flow, and $116 million in adjusted EBITDA, surpassing guidance on key metrics. The quarter saw 2.9 million connected fitness subscribers and $1.7 billion in annualized subscription revenue with a 68% gross margin. Additionally, international market growth was highlighted, with an 8% increase in paid subscribers and strategic price adjustments aimed at expanding Connected Fitness product gross margin. The company also focused on improving unit economics, achieving a 1.9x LTV to CAC ratio, and outlined initiatives in innovation and marketing to drive sustainable, profitable growth.

Appointment of New CEO

Peter Stern will assume the role of CEO and President on January 1, 2025. He has a strong track record of innovation and growth, notably leading Apple Fitness+ to millions of members.

Cost Savings and Profitability

Peloton delivered over $200 million of run rate cost savings by the end of fiscal year '25. Q1 results show $13 million in GAAP operating income, $11 million of free cash flow, and $116 million of adjusted EBITDA.

Strong Subscription Business

The connected fitness subscription business had over 6 million loyal members and generated over $1.7 billion in annualized subscription revenue with a 68% gross margin.

International Market Growth

Paid connected fitness subscribers in international markets grew 8% in Q1. Germany sales outperformed internal expectations after transitioning to a third-party retail model.

Reduced Marketing Costs

Sales and marketing expenses were reduced by $64 million or 44% year-over-year in Q1 due to lower media spend.

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Peloton Interactive (PTON) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

PTON Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Nov 05, 2019	2020 (Q1)	- / -1.29	-0.191	-575.39% (-1.10)	―	―
Feb 05, 2020	2020 (Q2)	- / -0.20	-0.193	-3.63% (>-0.01)	―	―
May 06, 2020	2020 (Q3)	- / -0.20	-0.135	-48.15% (-0.07)	―	―
Sep 10, 2020	2020 (Q4)	- / 0.27	-0.14	292.86% (+0.41)	―	―
Nov 05, 2020	2021 (Q1)	- / 0.20	-1.29	115.50% (+1.49)	―	―
Feb 04, 2021	2021 (Q2)	- / 0.18	-0.2	190.00% (+0.38)	―	―
May 06, 2021	2021 (Q3)	-0.12 / -0.03	-0.2	85.00% (+0.17)	―	―
Aug 26, 2021	2021 (Q4)	-0.44 / -1.05	0.27	-488.89% (-1.32)	―	―
Nov 04, 2021	2022 (Q1)	-1.10 / -1.25	0.2	-725.00% (-1.45)	―	―
Feb 08, 2022	2022 (Q2)	-1.21 / -1.39	0.18	-872.22% (-1.57)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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PTON Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 31, 2024	$6.65	$8.50	+27.82%
Aug 22, 2024	$3.36	$4.55	+35.42%
May 02, 2024	$3.22	$3.13	-2.80%
Feb 01, 2024	$5.56	$4.21	-24.28%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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