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Saturday, July 5, 2025

Peloton Sales Rise, But Treadmill Recall Looms

  • Peloton posted a 141% increase in sales and $1.26 billion in revenue in the fiscal third quarter.
  • It anticipates $165 million in revenue related to the treadmill recall announced Wednesday.
Peloton/Design: Alex Brooks

Peloton’s sales rose 141% in its fiscal Q3, bringing revenue to $1.26 billion as the pandemic-fueled at-home fitness boom continued into the early months of 2021.

Things might not be so rosy when the company reports on the current quarter. On Wednesday, Peloton recalled its treadmills — Tread and Tread+ — over safety concerns. Dozens of injuries have been reported, including the death of a 6-year-old.

The company had initially pushed back against a warning about the products from the Consumer Product Safety Commission, only to announce the recall days later in coordination with the agency. Peloton CEO John Foley said the company erred in its initial response.

  • Peloton anticipates $165 million in fiscal Q4 losses related to the recall. Of that sum, suspending sales on the two treadmills accounts for $105 million, plus another $50 million in returns, and $10 million from waiving subscription fees. 
  • The company has a finance base to handle the loss: $2.7 billion in liquidity, plus a credit facility it can tap for more capital.
  • Peloton is seeing growth in a product unconnected to a workout machine — its Peloton Digital class subscription service ($19.49/month) has 891,000 subscribers.

Foley said he hopes the Tread, which had not launched in the U.S. prior to the recall, could make its delayed entry in July.

“We have work to do in getting on the right side of the line in trust and safety,” Foley said.

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