What's Going On With Peloton Stock Today?

Peloton Interactive, Inc. PTON shares are trading lower on Thursday, after the company reported earnings per share of 12 cents loss in the third quarter, missing the analyst consensus estimate of 7 cents loss.

Quarterly sales of $624 million (down 13% year-over-year), beating the Street view of $621.32 million.

Connected Fitness Products Revenue decreased 27% year-over-year, driven by lower sales and deliveries across all Connected Fitness Product categories.

Subscription Revenue decreased $19.3 million, or 4% year-over-year.

Also Read: Peloton Faces Subscriber Setbacks, Tariff Troubles Despite Profit Push

Total Gross Profit was $318.1 million in the third quarter, an increase of 3% year over year. Total Gross Margin was 51.0%, an increase of 780 bps year-over-year, driven by a revenue mix shift towards the Subscription segment and favorable Connected Fitness Products Gross Margin.

Adjusted EBITDA was $89.4 million in the quarter, which was an $83.6 million improvement year-over-year.

The firm ended the quarter with $914.3 million in unrestricted cash and equivalents. Net Debt reduced $311.6 million or 35% year-over-year.

The company highlighted that Peloton and Precor-branded equipment are currently subject to a 25% tariff on their aluminum content. Precor and Apparel products sourced from China are subject to additional tariffs.

Outlook: Peloton Interactive slightly narrowed its FY2025 sales guidance to a range of $2.46 billion to $2.47 billion.

This compares to its prior outlook of $2.43 billion to $2.48 billion and consensus estimate of $2.46 billion.

PTON Price Action: Peloton Interactive shares are trading lower by 5.52% to $6.60 at publication on Thursday.

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