Peloton Interactive (PTON) Returns to Profitability with $324 Million Free Cash Flow in FY2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
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Source: Fool
- Financial Recovery: Peloton achieved a free cash flow of $324 million in fiscal 2025, marking a significant turnaround after burning through $2.7 billion cumulatively, indicating a notable improvement in its financial health.
- Strong Quarterly Performance: In the first quarter of fiscal 2026, Peloton reported a free cash flow of $67 million with a 12% margin, reflecting enhanced operational efficiency and boosting investor confidence for future growth.
- Market Expansion Strategy: Peloton is expanding through small-format sections within larger stores, a strategy that could increase product visibility and attract more consumers, potentially leading to new growth opportunities for the company.
- Ongoing Growth Challenges: Despite expectations for slight revenue growth in the second quarter, the long-term subscriber loss and reliance on price increases are unsustainable, necessitating Peloton to identify more effective growth avenues to ensure future profitability.
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 9.48 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.
12 Analyst Rating
4 Buy
8 Hold
0 Sell
Moderate Buy
Current: 5.800
Low
6.50
Averages
9.48
High
14.00
Current: 5.800
Low
6.50
Averages
9.48
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.
