Peloton Cuts Costs, Achieves Positive Net Income for Two Consecutive Quarters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 20h ago
0mins
Source: NASDAQ.COM
- Financial Improvement: Peloton achieved positive GAAP net income in Q4 2025 and Q1 2026, indicating a recovery from significant historical losses, although it still faces challenges with market confidence.
- Subscriber Loss Issues: As of September 30, 2026, Peloton's connected fitness subscribers totaled 2.7 million, down 6% year-over-year, reflecting weak demand for its products and services, which impacts long-term growth potential.
- Cost-Cutting Measures: Peloton aims to achieve $100 million in cost savings this fiscal year through workforce reductions, shrinking retail footprint, and cutting product development expenses, but these measures may only provide short-term financial relief without restoring user growth.
- Intensifying Market Competition: Peloton faces fierce competition from free workout videos and content, and its target market for high-priced fitness equipment is limited, leading investors to adopt a cautious outlook on its future growth prospects, viewing its stock as a high-risk turnaround story.
Analyst Views on PTON
Wall Street analysts forecast PTON stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PTON is 9.85 USD with a low forecast of 6.50 USD and a high forecast of 14.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
6 Buy
7 Hold
0 Sell
Moderate Buy
Current: 6.700
Low
6.50
Averages
9.85
High
14.00
Current: 6.700
Low
6.50
Averages
9.85
High
14.00
About PTON
Peloton Interactive, Inc. is a global fitness company. The Company is a category innovator at the nexus of fitness, technology, and media, with a subscription platform that combines hardware, distinctive software, and exclusive content. Its segments include Connected Fitness Products and Subscription. The Company’s Connected Fitness Products portfolio includes the Peloton Bike, Bike+, Tread, Tread+, Guide, Row, and various Precor products. Access to the Peloton App is available with an All-Access or Guide Membership for Members who have Connected Fitness Products or through a standalone App Membership with multiple Membership tiers. Access to the Strength+ App is available with an All Access, Guide, or App+ Membership or through a standalone Strength+ subscription. The Company’s subscriptions provide access to Peloton content and its library of live and on-demand fitness classes. The Company’s subscriptions are offered on a month-to-month or prepaid basis.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
