Peloton’s results for Q2 reflected ongoing challenges in maintaining subscriber growth but were met with a positive market reaction, driven by better-than-expected revenue and significant improvement in profitability. Management credited the quarter’s performance to higher hardware sales—particularly from both Peloton and Precor products—cost optimization efforts, and a shift toward premium product mix. CFO Liz Coddington emphasized that, “Our successful efforts to expand gross margins, reduce operating expenses and optimize inventory levels enabled us to generate $324 million of free cash flow, an increase of $409 million year-over-year.”

Is now the time to buy PTON? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Peloton’s Q2 Earnings Call

• Arpine Kocharyan (UBS) asked about the assumptions behind revenue guidance for the year. CFO Elizabeth Coddington cited upcoming product launches, pricing adjustments, and promotional strategies as key levers, promising more details next quarter.
• Youssef Squali (Truist Securities) questioned the long-term secular growth potential for Peloton’s addressable market. CEO Peter Stern pointed to significant untapped market opportunity, especially with expansion beyond cardio and increased focus on behavioral health.
• Curtis Nagle (Bank of America) inquired about capital allocation and refinancing plans. Coddington explained that deleveraging remains a top priority, with an eye on optimizing the company’s term loan structure when penalties subside.
• Shweta Khajuria (Wolfe Research) pressed on Peloton’s evolution to a wellness platform and tiering strategies. Stern described ongoing efforts to offer tiered app subscriptions, secondary/refurbished products, and new wellness content to broaden the customer base.
• Brian Nagel (Oppenheimer) sought clarity on the expected shift to revenue growth later in the year. Stern emphasized new member acquisition, product innovation, and increasing revenue per member as primary drivers, declining to comment on specific price changes until new value is delivered.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be closely monitoring (1) the effectiveness of new product and wellness content launches in attracting and retaining members, (2) the realization of targeted cost savings from the restructuring plan, and (3) the company’s ability to manage tariff-related cost pressures. Execution on personalized coaching and commercial business growth will also be important milestones.

Peloton currently trades at $8.65, up from $7.07 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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