Tuesday September 26, 2023
The Best Employers in Sports Survey is Now Open!

Peloton Borrows $750M As Downward Cycle Spins

Front Office Sports Today

Writer’s Strike End a Boon for Sports Networks, Agencies

We delve into the potential long-term impact of the five-month strike.
Listen Now
September 26, 2023 | Podcast
Copy Link
Link Copied
Link Copied

Peloton reported third-quarter revenue of $964.3 million, a 24% year-over-year drop from the $1.26 billion it posted the year prior, and a net loss of $757.1 million, a significant difference from last year’s third-quarter net loss of $8.6 million.

The fitness company is running out of cash.

Peloton ended the quarter with $879 million in unrestricted cash and cash equivalents. Earlier this week, the company signed an agreement with JPMorgan and Goldman Sachs — the banks that led Peloton’s IPO — to borrow $750 million in five-year term debt.

The company fell short of analysts’ revenue estimates of $972.9 million despite a net addition of 195,000 connected fitness subscribers during the quarter, a 42% year-over-year increase. 

With a total of 2.96 million connected fitness subscribers, Peloton expects its higher subscription prices will lower that number.

  • Peloton announced in April that subscriptions will raise by a respective $5 and $6 in the U.S. and Canada starting June 1, but hardware prices will fall.
  • Connected fitness products generated $594 million in sales during the quarter. Subscriptions brought in $370 million.

As of market close Tuesday, the company’s stock was down 8.7%.

Tough Turnaround

In his effort to get Peloton on the right track, CEO Barry McCarthy said third-party retailers will soon be a part of the mix.

Peloton expects fourth-quarter revenue to land between $675 million and $700 million, short of analysts’ expectations of $821.7 million.

Copy Link
Link Copied
Link Copied

What to Read

Foot Locker's Q1 sales dropped 11.4%.

Sports Retailers, Brands Struggle As Consumer Habits Shift

Foot Locker and Peloton are seeing their stock prices dip.
Michigan football players will ride Peloton's bikes on the sideline during games.

Peloton Enters NIL With Michigan Athletics Deal

Michigan's football players will use Peloton's bikes during games.
Nike's group fitness studios follow its Netflix workout streaming deal.

Nike Leans Into In-Person Fitness As Lululemon Cuts Back

With fitness classes already on Netflix, Nike now plans in-person studios.
NoBull was valued at $500 million and received investment from the NFL.

BodyArmor Founder Acquires Majority Stake In NOBULL

NOBULL was valued at $500 million in 2021.
podcast thumbnail mobile
Front Office Sports Today

Writer’s Strike End a Boon for Sports Networks, Agencies


Featured Today


Oakland-MLB Relationship Devolves Into Next-Level Toxicity

Commissioner, mayor have very different accounts of July meeting
Jacksonville Jaguars Team President Mark Lamping addressed community members at Strings Sports Brewery on Main Street for the first of 14 planned town hall sessions to present the team's plans for the new "stadium of the future" complex and address the public concerns.
September 25, 2023

Jacksonville Jaguars President Walks Back Stadium ‘Threat’

"Viewing those comments as a threat to leave Jacksonville isn't correct."
Chatri Sityodtong
September 25, 2023

ONE Championship's Quest To Challenge Rival UFC Through U.S. Expansion

Leveraging its Amazon deal, ONE Championship seeks to expand in U.S.
September 24, 2023

Savannah Bananas Break All The Rules To Hit The Mainstream

Team concludes 2023 tour with even-bigger plans for next year


Powered By

Careers in Sports

Looking for a new job? Check out these featured listings and search for openings all over the world.
Chicago Cubs
New York
Tri Star Sports and Entertainment Group, Inc.
USA - Multiple Locations
UBS estimates that pickleball injuries have cost Americans $377 million this year.

Pickleball Injuries Could Cost U.S. Nearly $400 Million Per Year

UBS estimates that pickleball injuries have cost Americans $377 million this year.
Harry Kane joins Dak Prescott and Dustin Johnson as investors in OxeFit.
June 1, 2023

Harry Kane Invests in OxeFit, Fitness Startup Reaches $45 Million in Funding

Harry Kane joins Dak Prescott and Dustin Johnson as investors in OxeFit.
The huupe "smart" basketball hoop in a gym.
May 23, 2023

Can Basketball Hoops Become Part of the Smart Gym Ecosystem?

Huupe is selling its product to professional and college basketball teams.
Peloton is recalling 2.2. million bikes.
May 11, 2023

Peloton Recalls 2.2 Million Bikes Following Injuries

Peloton is recalling 2.2. million bikes.
Apr 29, 2023; Columbus, Ohio, United States; Columbus Crew forward Cucho Hernandez (9) fights Inter Miami defender Serhiy Kryvtsov (27) for the ball during the first half of the MLS soccer game between Columbus Crew and Inter Miami at Lower.com Field on Saturday night.
May 1, 2023

Adidas Doubling Down on U.S. Sports Market

Adidas is leaning into basketball and soccer in the U.S. market.
Amazon Halo
April 27, 2023

Amazon Shuts Down Halo Fitness Wearable

Halo debuted in 2020 as Amazon’s foray into wearable fitness and space. 
The fitness industry grew 4.3 percent in 2022.
April 19, 2023

U.S. Sports and Fitness Products Hit $116B In Sales

Industry revenue grew 4.3 percent in 2022.
Someone working out with a Tonal machine.
April 11, 2023

Tonal Raises $130M After Big Value Drop

Tonal raised $130 million at a reported valuation of between $550-600 million.