Peloton Interactive Inc. Reports First Quarter Fiscal 2025 Earnings: Key Expectations and Recent Developments

Peloton Interactive Inc. (NASDAQ: PTON) is set to release its first quarter fiscal 2025 financial results on October 31, 2024, before the U.S. stock market opens. The earnings call, scheduled for 8:30 AM ET, will feature management discussing the company’s performance and future outlook.

Analysts are expecting Peloton’s revenue to decline by 4% year on year to $571.7 million, which is in line with the 3.4% decrease recorded in the same quarter last year. The adjusted loss per share is anticipated to be -$0.14. Despite these expectations, Peloton has shown some positive signs, having beaten analysts’ revenue expectations by 2.6% in the previous quarter with revenues of $643.5 million.

In recent months, Peloton’s stock has seen significant volatility but has managed to rebound, with shares increasing by 56.7% over the last month. This surge is partly due to the company’s efforts to cut costs and improve its financial health. Peloton aims to achieve $75 million in free cash flow for FY2025 through a $2 billion cost-cutting plan.

Additionally, Peloton has announced a partnership with Costco to sell its Bike+ in 300 U.S. stores and online from November 1 to February 15, targeting young, wealthy customers. This move is part of the company’s strategy to expand its market reach and improve sales.

Despite the challenges, including high churn rates and consumer perception issues, Peloton remains focused on its turnaround strategy. The company’s leadership has emphasized the potential for profitability driven by high-margin software upsells and the sale of its treadmills.