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Mar 31, 2025
Peloton Q3 2025 Earnings Report
Peloton delivered results at or above the high end of guidance, with improved margins and reduced losses in Q3 FY2025.
Key Takeaways
Peloton continued its turnaround in Q3 FY2025, achieving positive free cash flow for the fifth consecutive quarter, narrowing its net loss significantly, and improving gross margins thanks to cost control and a favorable revenue mix.
Revenue by Segment
Forward Guidance
Peloton raised full-year FY25 guidance for Adjusted EBITDA and revenue, while maintaining margin expectations and noting a slight headwind from tariffs.
Positive Outlook
- Raised FY25 Adjusted EBITDA guidance to $330M–$350M.
- Raised FY25 revenue guidance to $2.455B–$2.470B.
- Improved forecast for Ending Paid Connected Fitness Subscriptions.
- Stable Total Gross Margin expected at 50.0%.
- Free Cash Flow expected near $250M for FY25.
Challenges Ahead
- FY25 Ending Paid App Subscriptions expected to decline to 540K–550K.
- Expectations for Q4 include higher seasonal churn.
- Tariff headwinds expected to reduce Q4 Free Cash Flow by ~$5M.
- Connected Fitness Product revenue continues to decline YoY.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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