Feb 5 - Peloton Interactive on Thursday set a third-quarter revenue range that fell short of analysts' consensus, pointing to lackluster consumer demand for its at-home exercise machines.
The New York-based maker of stationary bikes and treadmills forecast revenue for the third quarter between $605 million and $625 million. That guidance is below the analysts' average estimate of $638.4 million, based on data compiled by LSEG.
Peloton has continued to see softer sales of its hardware even as it pursues cost reductions. In January the company cut about 11% of its workforce, part of a broader turnaround effort under CEO Peter Stern. Since taking the helm, Stern has reorganized the product lineup and implemented price increases for both equipment and subscriptions.
For the quarter ended December 31, Peloton reported revenue of $656.5 million, which missed analysts' expectations of $674.3 million. The company also reported a wider-than-expected loss per share for the second quarter, at a loss of 9 cents per share compared with analysts' expectations for a 6-cent loss.
Investors reacted sharply to the outlook and results, sending Peloton's shares down about 25% to their lowest level in roughly a year and a half. The stock had fallen 29.2% in 2025 and was down 25.8% so far in 2026 including the most recent session losses.
Peloton's update comes as demand for discretionary goods remains pressured. The company and observers point to persistently elevated prices affecting U.S. consumers; data showed consumer confidence fell to its lowest level in more than 11-1/2 years in January. The company specifically linked softer equipment sales to this environment while also emphasizing its internal actions to reduce costs and adjust pricing.
Context and company actions
- Leadership under CEO Peter Stern has focused on reshaping the product lineup and raising prices for hardware and subscriptions as part of a turnaround strategy.
- Cost-cutting steps included an 11% reduction in workforce announced in January.
- Quarterly performance showed revenue and earnings results that missed analyst expectations for the period ended December 31.
The company faces the near-term challenge of aligning sales with its revised pricing and cost structure while demand for nonessential items remains under strain.