Peloton CEO sounds the alarm on growing problems

From Yahoo Finance: 2025-05-11 11:33:00

During the Covid pandemic, billions worldwide were forced to stay home, disrupting routines and isolating many from loved ones. However, some used the time to focus on health and fitness, turning to Peloton for at-home workouts. Peloton’s Q3 earnings for fiscal 2025 showed record sales and subscriptions but struggled post-pandemic.

While Peloton’s business boomed during lockdowns, it has faced challenges as gyms reopened and consumer spending slowed. Subscriptions and equipment sales declined, with overall membership down 8% in Q3. This led to a 27% decline in equipment sales and a 4% decrease in subscription revenue year-over-year.

Peloton CEO Peter Stern outlined strategies to boost growth in fiscal 2026, including improving member outcomes, increasing brand awareness, fostering loyalty, and optimizing pricing and costs. Despite recent struggles, Peloton raised its outlook for fiscal 2025 across various metrics, expressing confidence in its future success in the fitness industry.



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