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Should You Buy Peloton Stock After a 95% Decline?
ByAinvest
Thursday, Aug 14, 2025 8:53 am ET1min read
Peloton Interactive's recent financial results suggest the company will survive despite a 95% decline in stock value from its all-time high. Revenue declined for the fourth straight year to $2.5 billion in fiscal 2025, with equipment sales plummeting to $817 million. However, subscription revenue doubled to over $1.6 billion. Management's changes and the shift to third-party retailers have helped slow the decline. While the connected fitness subscriber base is shrinking, Peloton's focus on subscription revenue and potential strategic partnerships could help the company rebound.
Peloton Interactive (NASDAQ: PTON) reported its fourth-quarter earnings, showcasing resilience despite a 95% decline in stock value from its all-time high. The company's revenue declined for the fourth straight year, reaching $2.5 billion in fiscal 2025, with equipment sales plummeting to $817 million. However, subscription revenue doubled to over $1.6 billion [2]. Management's strategic changes and the shift to third-party retailers have helped slow the revenue decline.Peloton's connected fitness subscriber base is shrinking, with 2.8 million members at the end of fiscal 2025, down 6% from the year-ago period [2]. Despite this, the company's focus on subscription revenue and potential strategic partnerships could help it rebound. Peloton Interactive's stock price closed at $7.07, up 14.77% in the last three months and up 137.25% in the last 12 months [1].
The company sees Q1 2026 revenue of $525.000M-$545.000M versus the analyst consensus of $555.000M, and FY 2026 revenue of $2.400B-$2.500B versus the analyst consensus of $2.460B [1]. Peloton's recent financial results suggest the company will survive, but it remains a shrinking business. Until Peloton proves it can deliver sustainable sales growth, investors might want to adopt a wait-and-see approach.
References:
[1] https://za.investing.com/news/earnings/peloton-interactive-earnings-beat-by-010-revenue-topped-estimates-3825558
[2] https://finance.yahoo.com/news/time-buy-peloton-stock-heres-090700218.html
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