Peloton Stock Plummets to All-Time Low on Disappointing Earnings Outlook

Shares of Peloton Interactive Inc. (PTON) tumbled to an all-time low Thursday morning after the fitness-equipment company missed quarterly earnings estimates and offered investors disappointing guidance.

The company said full-year revenue would fall 3% from the 2023 fiscal year and it would take longer than expected to reach its profitability goals.

“My primary goal for FY24 has been to restore the company to positive free cash flow for the full year. Based on our updated forecast, we now expect the business to generate positive free cash flow in Q4 (vs. $(74) million in 4Q23) but to fall short of achieving our goal for the full year,” Chief Executive Officer (CEO) Barry McCarthy said in a shareholder letter Thursday.

The company Thursday reported a net loss of $195 million, or 54 cents a share, for its fiscal second quarter on $744 million in revenue. Sales surpassed analyst estimates, while profit came up short.

Growth has eluded Peloton ever since COVID-19 restrictions were loosened in 2021, giving millions of people the freedom to leave their homes and Peloton bikes. Thursday’s results suggest the company is still struggling to recapture growth, but McCarthy forecast that revenue growth would resume in the fourth quarter ending in June. 

During the second quarter, Peloton reported a 4% year-over-year decrease in membership and a modest 1% increase in paid subscription.

Shares were down 22.5% at $4.31 each at 2:08 p.m. ET Thursday. The stock has lost about 67% of its value in the last year, and is more than 82% off its all-time high from the height of the pandemic.