EarningsDespite better-than-expected FY1Q CF subscriber and revenue performance, FY25 topline guidance ranges were unchanged, suggesting continued pressure on the subscriber base and an unclear path back towards growth for the company.
Financial PerformanceWith revenue and gross add declines accelerating in FY25, while Churn continues to tick higher given a dilutive subscriber mix to initiatives like Secondary Market sales and Fitness as a Service (FAAS), along with price increases on its bike program, we model FY25 revenue declines.
Growth OutlookReturn to growth in Connected Fitness Subscribers and Revenue remains challenging given limited visibility and secular and macro pressures.