Peloton’s Earnings Rollercoaster: Profit Surprise Sparks Volatility
Peloton shares swung violently Thursday, initially surging 14% before erasing gains after the fitness company delivered an unexpected Q4 profit. The connected fitness pioneer reported $1.27 per share earnings, dramatically outperforming analyst expectations despite a 6% revenue decline.
Cost-cutting measures appear to be bearing fruit, with equipment gross margins doubling to 17.6% and subscription margins climbing to 72%. The company's subscription segment now generates two-thirds of total revenue, creating a potential path to sustainable profitability if churn rates stabilize below the projected 6% for 2026.