The Peloton Tread+ and Bike+ during a media preview at Peloton headquarters in New York, USA, Tuesday, September 30, 2025.
Gabby Jones | Bloomberg | Getty Images
Platoon on Thursday reported third-quarter financial results that beat Wall Street expectations for revenue but fell slightly short of earnings per share.
The company touted better-than-expected equipment sales and subscription revenue as helping to boost its sales and profitability, with free cash flow up nearly 60%.
“The first thing to do in terms of results is to report on your financial position, and we think it was a pretty good quarter in terms of your strategic position,” CEO Peter Stern told CNBC.
Here’s how the company performed in its quarter ended March 31, compared to what Wall Street expected, based on a survey of analysts by LSEG:
- Earnings per share: 6 cents versus 7 cents expected
- Income: $630.9 million versus $617.6 million expected
The company’s net income for the quarter was $26.4 million, or 6 cents per share, up from a loss of $47.7 million, or 12 cents per share, a year earlier. Sales were $630.9 million, up about 1% from $624 million a year earlier.
For the full fiscal year, Peloton said it expects total revenue to be between $2.42 billion and $2.44 billion, lifting the lower end of the forecast range it provided last quarter.
The company saw revenue from its connected fitness subscriptions rise to $202.9 million, down from $205.5 million a year earlier but beating estimates of $196 million, according to StreetAccount. Subscription revenue also beat estimates and increased 2% year-over-year to $428 million.
The number of paying connected fitness subscribers, however, decreased year-on-year to 2.66 million.
The connected fitness company has been struggling with weak performance and sluggish sales, previously forecasting that performance to extend into this quarter. It has attempted to revamp its product assortment and recently raised prices on its equipment and subscription plans.
Stern said Peloton believes its price changes are appropriate.
“We are very sensitive to the fact that people are feeling stress in this economic environment, and that affects different people in very different ways,” Stern told CNBC. “That being said, we think the pricing changes we made in the second quarter – it’s about time. We’ve added tremendous value over the next three or four years since we changed our subscription prices.”
Peloton has also entered into new partnerships and tried new strategies to win back customers. Last month, Peloton announced a deal with Spotifymaking more than 1,400 Peloton classes available to Spotify Premium subscribers. It also launched its first Bike and Tread products for high-traffic gym floors in March.
Stern added that the company had already factored the Spotify deal into its revenue guidance because it had been in the works for “a long time.” Peloton also doesn’t count Spotify users among its subscribers.
“We’re really excited about our deal with Spotify, which allows us to reach Peloton members in many more countries and also represents a high revenue margin for us,” Stern said.