Peloton Interactive Inc (NASDAQ:PTON) shares fell about 24% in early trading Thursday after the connected fitness company reported a weaker-than-expected holiday quarter and issued revenue guidance below analysts’ forecasts.
For its fiscal second quarter ended December 31, 2025, Peloton reported a loss of $0.09 per share, compared with Wall Street expectations for a loss of $0.06 per share.
Revenue came in at $657 million, below the consensus estimate of $674 million.
The company’s net loss was $38.8 million, or $0.09 per share, improving from a $92 million loss, or $0.24 per share, in the year-ago period, while sales declined about 3% year over year.
Despite the revenue miss, Peloton reported adjusted EBITDA of $81 million for the quarter, exceeding analysts’ expectations of $73 million.
Peloton reported 2.661 million paid connected fitness subscriptions at quarter-end, down 7% year over year but slightly above the midpoint of its guidance range. The company said churn was better than expected following recent price increases, partially offset by lower gross subscriber additions.
The company said demand for its revamped product lineup, which features artificial intelligence-powered tracking cameras, speakers, rotating screens, and hands-free controls, was softer than anticipated during the key holiday period, typically its strongest quarter for hardware sales.
Looking ahead, Peloton forecast third quarter revenue of $605 million to $625 million, below analysts’ expectations of $638 million. The company also guided adjusted EBITDA of $120 million to $135 million, slightly above analysts’ estimates of $119 million.
The company also raised its full-year fiscal 2026 adjusted EBITDA guidance to $450 million to $500 million, up from a previous range of $425 million to $475 million.
Peloton CEO Peter Stern said the quarter marked a significant period of product innovation while the company continued to improve profitability and reduce net debt.
“Looking ahead, our focus remains on executing our strategy to increase our share of the growing global wellness economy while continuing to enhance our magic formula of premium hardware, intuitive software, and unmatched human coaching,” Stern said.
