Shares of exercise equipment company Peloton (NASDAQ:PTON)
fell 5.4% in the afternoon session after the company reported weak first quarter 2025 results which included an EBITDA beat, but revenue was merely in line and full-year EBITDA guidance fell slightly short of expectations. Revenue declined 13% year over year, weighed down by a 27% drop in hardware sales, even as subscription revenue held steady and churn remained low. Overall, this was a softer quarter, and the market needs more convincing performance from this turnaround.
The company raised its full-year revenue guidance to between $975 million and $1.025 billion, up from its previous guidance of between $300 million and $350 million.
Exercise equipment company Peloton (NASDAQ:PTON) met Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 13.1% year on year to $624 million. The company’s outlook for the full year was close to analysts’ estimates with revenue guided to $2.46 billion at the midpoint. Its GAAP loss of $0.12 per share was 97.4% below analysts’ consensus estimates.
Stronger profitability and consistent cash flow generation mark Peloton's operational progress, leading to increased analyst confidence in its recovery path.
Shares of exercise equipment company Peloton (NASDAQ:PTON)
jumped 6.4% in the pre-market session after Truist analysts upgraded the stock's rating from Hold to Buy, signaling renewed confidence in the company's turnaround efforts. In their note, the firm emphasized that more than three years after initially downgrading Peloton, they saw tangible improvements in the company's fundamentals.
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Shares of exercise equipment company Peloton (NASDAQ:PTON)
fell 6.4% in the afternoon session after the Bureau of Economic Analysis reported that the Fed's preferred inflation gauge (the Personal Consumption Expenditures (PCE) price index) revealed core inflation came in hotter than expected, fueling fear of stagflation (an economic situation of slow growth and rising prices). Core inflation excludes food and energy prices.
Peloton has had an impressive run over the past six months. While the S&P 500 has been flat, the stock has returned 38.7% and now trades at $7.17. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.
