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Peloton Returns to Profit, Raises Guidance After Revenue Beat

The outlook lift signals a shift toward a leaner, more profitable model.

Overview

  • Peloton reported revenue of $630.9 million, beating forecasts on stronger equipment demand.
  • Net income reached $26.4 million at 6 cents per share, a turnaround from last year despite a one-cent EPS miss.
  • Management raised full-year sales guidance to $2.42–$2.44 billion and increased its free-cash-flow goal to about $350 million.
  • Operating strength showed up in cash metrics, with adjusted EBITDA at $126 million and free cash flow at $151 million as net debt fell to $173 million.
  • Paid connected-fitness subscriptions slipped to about 2.66 million, and shares rose roughly 4% as Peloton pushed price hikes, a Spotify deal, and new commercial gym products.