Peloton (PTON) earnings Q4 2025
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Peloton posted a surprise profit for its fiscal fourth quarter on Thursday and outlined its strategy to return to growth under new CEO Peter Stern. Shares gained 10% in premarket trading. The connected fitness company, known for its stationary bikes and treadmills, posted a net income of $21.6 million, compared with a loss of $30.5 million in the year-earlier period. That’s thanks to better than expected sales but also, Peloton’s efforts to cut its operating expenses, which Stern said in a letter to shareholders remain too high. In fiscal year 2026, which began in July, the company plans to reduce run-rate expenses by another $100 million, on top of the $200 million it cut in fiscal 2025. Half of those cuts will come from indirect costs, like renegotiating contracts with suppliers, but the other half will come from cutting 6% of its staff, the company said. “Our operating expenses remain too high, which hinders our ability to invest in our future,” Stern wrote in the letter to shareholders. “We are launching a cost restructuring plan intended to achieve at least $100 million of run-rate savings by the end of FY26 by reducing the size of our global team, paring back indirect spend, and relocating some of our work. This is not a decision we came to lightly, as it impacts many talented team members, but we believe it is necessary for the long-term health of our business.” The latest round of layoffs comes just over a year after the company announced plans to cut 15% of its staff. For the most recent quarter, Peloton beat Wall Street expectations on the top and bottom lines. Here’s how the company did in its fourth fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG: Earnings per…
Filed under: News - @ August 7, 2025 11:34 am