Peloton is losing money again as subscriptions keep falling. The stock is plunging.

By Tomi Kilgore

Sales fell from a year ago for a sixth straight quarter and connected-fitness subscriptions fell to their lowest level in more than four years

Peloton's stock falls as the maker of home-fitness products again reported quarterly losses, and as connected-fitness subscriptions fell to a more than four-year low.

After a brief reprieve, Peloton Interactive was back to reporting quarterly losses, as sales fell short of expectations and the number of subscribers fell to the lowest number in years.

The home-fitness company also announced Thursday that Chief Financial Officer Liz Coddington will be leaving in March after about four years with the company. The announcement came a year after CEO Peter Stern took charge, and as the company is still struggling to mount a turnaround.

The stock (PTON) tumbled 25.7% to a 16-month low and its biggest one-day selloff since it slid 24.3% on Feb. 1, 2024. Trading volume ballooned to more than 90 million shares, compared with the full-day average over the past 30 days of about 9 million shares.

It has now dropped 28.7% this year, after falling 29.2% in 2025.

After posting net profits for the previous two quarters to snap a 17-quarter streak of losses, according to FactSet data, the company said it had a net loss of $38.8 million for the fiscal second quarter to Dec. 31. The loss per share narrowed to 9 cents from 24 cents a year ago, but wider than the average analyst estimate compiled by FactSet of 5 cents.

Revenue was down 2.6% to $656.5 million, missing the FactSet consensus of $675.6 million and snapping a six-quarter streak of beats.

Outgoing CFO Coddington said on the post-earnings call with analysts that revenue disappointed as equipment sales were lower than expected, primarily to existing members, and because delivery times were longer than expected, which delayed the recognition of some revenue.

Connected-fitness subscriptions declined 7.4% to 2.661 million, a tad below expectations of 2.664 million, and the lowest number since the quarter ending September 2021.

The company expects third-quarter revenue to be between $605 million and $625 million; that's below the current FactSet consensus of $637.9 million.

On the bright side, underlying profitability did improve, with adjusted earnings before interest, taxes, depreciation and amortization increasing 39.4% to $81.4 million.

CEO Stern said the increase in adjusted Ebitda was an example of "operational discipline" as the company was going through a period of innovation to boost membership, including the Peloton Cross Training Series and a personalized guidance tool powered by artificial intelligence.

Still, the stock remains a shadow of what it was at its height, when COVID-19 shutdowns triggered a home-workout boom. The stock rocketed 434.2% in 2020 and reached its record close of $167.42 on Jan. 13, 2021. Since then, it had plunged 97%.

Meanwhile, shares of gym companies have been gaining ground. Planet Fitness shares (PLNT) are up a 18.5% since the end of 2020, while Life Time Group Holdings' stock (LTH) has rallied 63% since it went public on Oct. 7, 2021.

-Tomi Kilgore

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

02-05-26 1620ET