Peloton Stock Surges As Q1 Earnings Beat, CEO Appointment Spark Retail Excitement

Shares of Peloton Interactive Inc. ($PTON) rose over 8% pre-market Thursday, becoming one of the top five trending tickers on Stocktwits. 

The connected fitness company reported a narrower-than-expected loss for its fiscal Q1 2025 and announced a new CEO, set to assume the role on Jan. 1, 2025.

For the quarter ending Sept. 30, Peloton reported a loss of $1 million, breaking even on a per-share basis, an improvement from the $159.3 million loss, or $0.44 per share, reported a year earlier,  and better than expectations of a loss of $0.15.

Revenue came in at $586 million, slightly down from last year’s $595.5 million but above the consensus of $573 million. 

Peloton has also raised its FY25 free cash flow target to at least $125 million, a $50 million increase from prior guidance.

The company reiterated plans for fiscal 2025 to continue realigning its cost structure to a leaner business size, targeting over $200 million in annual savings. 

Peloton also reiterated its full-year revenue guidance of between $2.4 billion and $2.5 billion, in line with analyst consensus at $2.46 billion. 

However, it projects holiday-quarter revenue between $640 million and $660 million, falling short of Wall Street’s expectation of $671.4 million.

Looking ahead, Peloton expects hardware sales to decline year-over-year and anticipates modest increases in subscription churn. 

Paid Connected Fitness Subscriptions are expected to remain between 2.68 million and 2.75 million, while Paid App Subscriptions were lowered to 550,000-600,000 as the company reallocates media spend towards product development.

In a significant leadership update, Peter Stern, currently President of Ford Integrated Services, will take over as Peloton’s CEO and President. Interim Co-CEO Chris Bruzzo will step down on Nov. 1, with Karen Boone serving as the sole interim CEO until Stern’s official start date.

On Stocktwits, retail investors showed optimism, with many discussing Peloton’s potential as fundamentals-driven stock. 

Comments also included predictions for the stock’s long-term growth, bolstered by new leadership and signs of operational efficiencies.

For updates and corrections, email newsroom@stocktwits.com

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