Peloton misses by $0.04, misses on revs; guides FY26 revs below consensus, raises adjusted EBITDA outlook (5.91 +0.19)
- Reports Q2 (Dec) loss of $0.09 per share, $0.04 worse than the FactSet Consensus of ($0.05); revenues fell 2.5% year/year to $657 mln vs the $675.55 mln FactSet Consensus.
- Adjusted EBITDA was $81 million, an increase of $23 million or 39% year-over-year and $6 million above the high end of our guidance range.
- Ending Paid Connected Fitness Subscriptions were 2.661 million, a decrease of 214,000 or 7% year-over-year and 6,000 above the midpoint of our guidance range. We observed better-than-expected Average Net
- Monthly Paid Connected Fitness Subscription Churn following Membership price increases announced on October 1, which was partially offset by lower gross additions.
- Co issues downside guidance for FY26, sees FY26 revs of $2.40-$2.44 bln vs. $2.48 bln FactSet Consensus. Sees total Gross Margin of approximately 53.0%, reflecting an increase of 210 bps year-over-year and a 100 bps increase to our outlook provided last quarter. Adjusted EBITDA outlook of $450 million to $500 million, representing an increase of $71 million or 18% year-over-year at the midpoint and an increase of $25 million to our outlook provided last quarter.