Peloton Shares Surge After Q2 FY2025 Results Beat Expectations
Peloton Interactive (PTON) saw its stock jump over 14% on Thursday following a strong second-quarter fiscal 2025 earnings report, where the exercise equipment maker reported revenue and adjusted earnings that exceeded analysts’ estimates.
Peloton Q2 FY2025 Financial Results
Peloton generated $673.9 million in revenue for the quarter, which marked a 9% year-over-year decline, but still surpassed the $655.17 million consensus estimate compiled by Visible Alpha. Despite this positive revenue performance, the company reported a loss of $92 million, which was larger than the $68.2 million loss analysts had predicted.
One bright spot in the earnings report was Peloton’s adjusted EBITDA, which came in at $58.4 million, more than double the $27.8 million analysts had expected, showcasing improved profitability on an adjusted basis.
Optimistic Guidance for Future Quarters
Peloton’s forecast for Q3 FY2025 and the full fiscal year also exceeded Wall Street’s expectations. The company expects an adjusted EBITDA of $70 million to $85 million for the third quarter, and $300 million to $350 million for the full year. These projections are significantly higher than analysts’ prior consensus estimates of $50 million for Q3 and $275.14 million for the full year, signaling optimism in Peloton’s path to profitability.
Leadership Changes and Future Plans
The quarter also marked the company’s first results since the appointment of Peter Stern as CEO in October 2024. Stern officially took over at the start of 2025. In a letter to shareholders, Peloton acknowledged the challenges ahead, noting, “We see significant opportunities ahead, but we have a steep hill to climb to reach sustained, profitable growth.”
Stock Performance and Investor Sentiment
Peloton’s stock surge of over 14% following the earnings release is a significant boost for the company, with its shares now almost doubling from the previous year. Despite the year-over-year revenue decline, the positive guidance and the improved EBITDA outlook have fueled investor confidence.
Key Takeaways
- Q2 FY2025 revenue of $673.9 million, surpassing analyst estimates.
- Adjusted EBITDA of $58.4 million, more than double analysts’ expectations.
- Optimistic Q3 and full-year guidance for adjusted EBITDA.
- New CEO Peter Stern officially took over in 2025, with growth strategies outlined.
- Stock surged 14% following the report, reaching nearly double the price from last year.
Peloton is focused on navigating its growth challenges while capitalizing on future opportunities to achieve sustained profitability, signaling potential growth in the upcoming quarters.
