Peloton Interactive (PTON) AI Stock Analysis

• Market Cap: $3.49B
• Dividend Yield: N/A
• Average Volume (3M): 10.48M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: -7.76%
• EPS Growth: 79.66%
• Country: US
• Employees: 2,853
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.05
• Shares Outstanding: 391,926,270
• 10 Day Avg. Volume: 11,358,673
• 30 Day Avg. Volume: 10,475,366
• PEG Ratio: 0.28
• Price to Book (P/B): -6.54
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 8.36
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.51
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: 34.57
• 1Y Price Target: $10.08
• Price Target Upside: 17.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 56 Neutral
• Price Target: $8.50 ▼(-0.70% Downside)

Peloton's overall stock score is driven by significant financial challenges and valuation concerns, despite positive technical indicators and strategic innovations. The company's efforts in improving cash flow and reducing debt are notable, but ongoing profitability issues and high leverage remain critical risks.

Positive Factors

Debt Reduction

Significant debt reduction enhances financial stability and reduces interest expenses, improving long-term financial health and flexibility.

Gross Margin Improvement

Improved gross margins indicate better cost management and pricing strategies, which can lead to enhanced profitability over time.

Strategic Innovations

Innovative strategies like Peloton Repowered and targeted pricing can expand market reach and foster customer loyalty, supporting long-term growth.

Negative Factors

Revenue Decline

Declining subscriptions and revenue highlight challenges in maintaining customer engagement and market share, impacting long-term growth prospects.

Tariff and Cost Headwinds

Tariff exposure and restructuring costs could pressure margins and operational efficiency, posing risks to profitability and cost management.

Seasonal Revenue Decline

Expected seasonal revenue decline suggests potential challenges in demand forecasting and sales consistency, affecting financial stability.

Peloton Interactive Business Overview & Revenue Model

Company Description

Peloton Interactive, Inc. provides interactive fitness products in North America and internationally. It offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, and Peloton Tread+ names. The company also provides connected fitness subscriptions for various household users, and access to various live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes. As of June 30, 2021, it had approximately 5.9 million members. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.

How the Company Makes Money

Peloton generates revenue primarily through two key streams: the sale of fitness equipment and subscription services. The company's hardware offerings, including its Peloton Bike, Bike+, and Tread, contribute significantly to its revenue when sold directly to consumers. Once customers purchase the equipment, they are encouraged to subscribe to Peloton's All-Access Membership, which provides access to its vast library of live and on-demand fitness classes. This subscription model is a recurring revenue stream that has proven to be highly valuable, as it fosters customer loyalty and promotes long-term engagement. Additionally, Peloton has formed strategic partnerships with various fitness and wellness brands, enhancing its market presence and potentially opening new revenue avenues. The combination of hardware sales and subscription services positions Peloton as a formidable player in the fitness industry.

Peloton Interactive Financial Statement Overview

Summary

Peloton faces significant financial challenges with declining revenues, persistent losses, and a highly leveraged balance sheet. Improvements in cash flow generation are noted, but profitability and leverage issues remain critical concerns.

Income Statement

Peloton's income statement reveals declining revenue growth and negative profit margins. The gross profit margin has improved slightly in the latest year, indicating some cost control, but the net profit margin remains negative, reflecting ongoing losses. The EBIT and EBITDA margins have shown some improvement but remain negative, indicating operational challenges.

Balance Sheet

The balance sheet shows a concerning negative stockholders' equity, leading to a negative debt-to-equity ratio, which indicates financial instability. The return on equity is also negative, reflecting the company's inability to generate profits from its equity base. The equity ratio is low, suggesting high leverage and potential financial risk.

Cash Flow

Peloton's cash flow statement shows positive free cash flow growth, indicating some improvement in cash generation. However, the operating cash flow to net income ratio is low, suggesting that cash generation from operations is weak relative to net income. The free cash flow to net income ratio is close to 1, indicating that most of the net income is being converted into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.49B	2.49B	2.70B	2.80B	3.58B	4.02B
Gross Profit	1.27B	1.27B	1.21B	923.60M	698.40M	1.45B
EBITDA	108.70M	-36.20M	-330.80M	-1.04B	-2.53B	-119.60M
Net Income	-119.00M	-118.90M	-551.90M	-1.26B	-2.82B	-189.00M
Balance Sheet
Total Assets	2.13B	2.13B	2.19B	2.77B	4.04B	4.49B
Cash, Cash Equivalents and Short-Term Investments	54.50M	1.04B	697.60M	813.90M	1.25B	1.61B
Total Debt	1.98B	1.98B	2.08B	2.36B	2.37B	1.51B
Total Liabilities	2.54B	2.54B	2.70B	3.06B	3.44B	2.73B
Stockholders Equity	-413.70M	-413.70M	-519.10M	-295.20M	603.70M	1.75B
Cash Flow
Free Cash Flow	323.70M	323.70M	-85.80M	-470.00M	-2.36B	-491.90M
Operating Cash Flow	333.00M	333.00M	-66.10M	-387.60M	-2.04B	-239.70M
Investing Cash Flow	-5.10M	-5.10M	26.80M	-69.90M	171.00M	-585.10M
Financing Cash Flow	1.70M	1.70M	-94.40M	76.80M	2.02B	916.80M

Peloton Interactive Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTON, the sentiment is Positive. The current price of 8.56 is above the 20-day moving average (MA) of 7.99, above the 50-day MA of 7.61, and above the 200-day MA of 7.43, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 60.76 is Neutral, neither overbought nor oversold. The STOCH value of 73.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTON.

Peloton Interactive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YETI	69 Neutral	2.79B	16.42	22.07%	―	3.63%	-2.60%
OSW	69 Neutral	2.23B	31.74	12.98%	0.74%	8.51%	31.24%
LTH	64 Neutral	6.16B	27.40	7.90%	―	17.25%	93.88%
PLNT	61 Neutral	8.73B	46.29	-119.08%	―	12.47%	22.74%
PTON	56 Neutral	$3.49B	―	58.47%	―	-7.76%	79.66%
XPOF	44 Neutral	382.18M	-4.47	54.02%	―	-3.02%	-517.53%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%