Peloton shares sink on earnings miss, soft revenue outlook

Peloton Interactive Inc (NASDAQ:PTON) shares fell astir 24% successful aboriginal trading Thursday aft the connected fittingness institution reported a weaker-than-expected vacation 4th and issued gross guidance beneath analysts’ forecasts.

For its fiscal 2nd 4th ended December 31, 2025, Peloton reported a nonaccomplishment of $0.09 per share, compared with Wall Street expectations for a nonaccomplishment of $0.06 per share.

Revenue came successful astatine $657 million, beneath the statement estimation of $674 million.

The company’s nett nonaccomplishment was $38.8 million, oregon $0.09 per share, improving from a $92 cardinal loss, oregon $0.24 per share, successful the year-ago period, portion income declined astir 3% twelvemonth implicit year.

Despite the gross miss, Peloton reported adjusted EBITDA of $81 cardinal for the quarter, exceeding analysts’ expectations of $73 million.

Peloton reported 2.661 cardinal paid connected fittingness subscriptions astatine quarter-end, down 7% twelvemonth implicit twelvemonth but somewhat supra the midpoint of its guidance range. The institution said churn was amended than expected pursuing caller terms increases, partially offset by little gross subscriber additions.

The institution said request for its revamped merchandise lineup, which features artificial intelligence-powered tracking cameras, speakers, rotating screens, and hands-free controls, was softer than anticipated during the cardinal vacation period, typically its strongest 4th for hardware sales.

Looking ahead, Peloton forecast 3rd 4th gross of $605 cardinal to $625 million, beneath analysts’ expectations of $638 million. The institution besides guided adjusted EBITDA of $120 cardinal to $135 million, somewhat supra analysts’ estimates of $119 million.

The institution besides raised its full-year fiscal 2026 adjusted EBITDA guidance to $450 cardinal to $500 million, up from a erstwhile scope of $425 cardinal to $475 million.

Peloton CEO Peter Stern said the 4th marked a important play of merchandise innovation portion the institution continued to amended profitability and trim nett debt.

“Looking ahead, our absorption remains connected executing our strategy to summation our stock of the increasing planetary wellness system portion continuing to heighten our magic look of premium hardware, intuitive software, and unmatched quality coaching,” Stern said.