A number of stocks fell in the afternoon session after investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week.
Peloton’s results for Q2 reflected ongoing challenges in maintaining subscriber growth but were met with a positive market reaction, driven by better-than-expected revenue and significant improvement in profitability. Management credited the quarter’s performance to higher hardware sales—particularly from both Peloton and Precor products—cost optimization efforts, and a shift toward premium product mix. CFO Liz Coddington emphasized that, “Our successful efforts to expand gross margins, reduce operating expenses and optimize inventory levels enabled us to generate $324 million of free cash flow, an increase of $409 million year-over-year.”
Exercise equipment company Peloton (NASDAQ:PTON) reported Q2 CY2025 results topping the market’s revenue expectations, but sales fell by 5.7% year on year to $606.9 million. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $535 million was less impressive, coming in 3.3% below expectations. Its non-GAAP profit of $0.11 per share was significantly above analysts’ consensus estimates.
Shares of Peloton Interactive Inc (NASDAQ: PTON) traded higher on Monday on continued momentum following the company's fourth-quarter earnings report last week. Here's what investors need to know.
Shares of exercise equipment company Peloton (NASDAQ:PTON)
jumped 4.8% in the morning session after the company reported a surprise second-quarter profit and beat Wall Street's revenue expectations. The connected fitness company reported a surprise second-quarter profit of $0.05 per share, significantly outperforming Wall Street's expectations for a loss of $0.05 per share. Revenue for the period also topped forecasts, coming in at $606.9 million. The positive results were driven by a significant improvement in profitability. Adjusted EBITDA, a measure of core earnings, came in at $140 million, crushing analyst estimates of $83.17 million. Furthermore, the company's operating margin swung from a negative 9.9% in the same quarter last year to a positive 4.9%, highlighting successful cost management efforts as part of its turnaround strategy. While the company's revenue guidance for the next quarter was slightly below expectations, its full-year EBITDA guidance was a bright spot, exceeding analyst forecasts.
Exercise equipment company Peloton (NASDAQ:PTON) reported Q2 CY2025 results beating Wall Street’s revenue expectations, but sales fell by 5.7% year on year to $606.9 million. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $535 million was less impressive, coming in 3.3% below expectations. Its GAAP profit of $0.05 per share was significantly above analysts’ consensus estimates.
According to a CNBC report, the company plans to reduce run-rate expenses by another $100 million in fiscal year 2026, on top of the $200 million it cut in fiscal 2025, half of which will come from trimming the workforce.
