Peloton’s downward spiral seems to be slowing down — despite reporting a loss for the eighth quarter in a row.
The connected fitness company’s net loss narrowed to $335.4 million from $439.4 million during the same period last year — its narrowest since the fourth quarter of 2021.
Peloton reported $792.7 million in second-quarter revenue, beating analysts’ estimates of $710 million and the company’s expected range of $700 million to $725 million — though it’s still a 30% drop year-over-year.
- Connected fitness product sales fell 52% year-over-year.
- Subscription revenue increased 22%.
One year into the position, CEO Barry McCarthy said Peloton’s second-quarter earnings results are a possible “turning point” for the business, as subscription revenue exceeded hardware-related revenue.
“We were on the brink of extinction, and that’s no longer the case,” McCarthy said. “We’ve put to bed questions about the viability of the business.”
Peloton ended the quarter with 3.03 million connected fitness subscriptions and 852,000 app subscribers.
It expects third-quarter sales to fall around 27% to between $690 million and $715 million. Analysts estimate revenue will reach $692.1 million.
Peloton also announced it will not sell commercial fitness business Precor.
McCarthy’s Moves
McCarthy’s hire brought a lot of changes with it.
More than half of Peloton’s workforce has been cut, Dick’s Sporting Goods and Amazon began selling Peloton products, and the company revealed a new rowing machine and started selling certified pre-owned bikes. There have also been several executive shakeups.
