Peloton Reports Q2 Revenue Surpass, Raises Profitability Outlook

Peloton Interactive has revised its profit forecast for fiscal year 2025, predicting adjusted earnings between $300 million to $350 million, higher than the previous estimate, due to cost-cutting measures and focus on app-based subscriptions (Reuters). Despite a 9.4% decline in year-on-year sales to $673.9 million in Q4 CY2024, Peloton exceeded revenue expectations and improved cash flow, forecasting a fiscal 2025 revenue between $2.43 billion and $2.48 billion (Yahoo Finance, CNBC). The company reported a smaller net loss of $92 million compared to $195 million a year earlier, buoyed by partnerships with retailers like Costco and Lululemon (CNBC). Peloton's stock rose 6.2% in premarket trading as it lifted its profitability outlook and reported a significant revenue beat in its fiscal second quarter (MarketWatch). New CEO Peter Stern aims to navigate the company's transition to a software-first business model, leveraging higher-margin subscription services (Reuters, Bloomberg). However, Peloton acknowledges the challenge of achieving sustained, profitable growth as it continues to refine its business strategy (Reuters, CNBC).