From Yahoo Finance: 2025-05-26 09:00:00

Peloton has cut expenses to minimize net losses, causing shares to surge. However, subscriber and revenue growth remain a challenge, making it a risky investment. Despite a cheap price-to-sales multiple, profitability is uncertain, with a net loss of $2.8 billion in fiscal 2022.

While Peloton’s net loss has decreased to $48 million in Q3 2025, the company still faces challenges in generating sustainable profits. The stock price has doubled in 12 months, reflecting improved financials. Peloton aims to achieve $200 million in yearly cost savings, reducing net debt by 35% year over year.

The fitness industry is fickle, as seen in Peloton’s rise and fall. Revenue dropped 13% in Q3, with a decline in subscribers. Despite a low price-to-sales ratio, the market remains pessimistic. Peloton’s market cap has significantly decreased, making it a challenging stock to assess fundamentally.

Investors may see potential in Peloton’s beaten-down shares, trading at a fraction of their peak value. However, the company’s path to profitability remains uncertain. While the stock has performed well in the past year, achieving lasting success in the fitness industry is challenging.

Before investing in Peloton, consider the potential risks and rewards. While the stock may seem undervalued, achieving millionaire status from this investment is unlikely. The market remains skeptical about Peloton’s future, despite recent stock performance and cost-saving efforts.

Read more: If You Buy This Beaten-Down Stock Right Now, Will You Become a Millionaire by 2035?