Peloton Reports $624M Revenue Decline and $47.7M Net Loss for Q3 2025

Peloton Interactive, Inc. reported a total revenue of $624.0 million for the three months ended March 31, 2025, a decrease of 13.1% compared to $717.7 million in the same period last year. The decline was primarily driven by a 26.6% drop in revenue from Connected Fitness Products, which totaled $205.5 million, down from $279.9 million. Subscription revenue also fell slightly by 4.4% to $418.5 million from $437.8 million. For the nine months ended March 31, 2025, total revenue was $1.883 billion, down 8.4% from $2.057 billion in the prior year, with Connected Fitness Products revenue decreasing by 20.7% and subscription revenue declining by 0.9%.

The company reported a net loss of $47.7 million for the third quarter, a significant improvement from a net loss of $167.3 million in the same quarter of the previous year. For the nine-month period, the net loss was $140.5 million, compared to $521.4 million in the prior year. Operating expenses decreased by 23% year-over-year, contributing to the reduced net loss. Peloton's gross profit for the quarter was $318.1 million, slightly up from $309.7 million a year earlier, with a gross margin of 51.1%, reflecting improved cost management.

In terms of operational metrics, Peloton reported 6.1 million Members as of March 31, 2025, with a slight decrease in Paid Connected Fitness Subscriptions to 2.88 million from 3.05 million a year prior. The company also noted a reduction in average monthly churn rates for both Connected Fitness and App subscriptions. Engagement metrics showed that nearly half a million Members utilized the newly launched Personalized Plans feature, which uses AI to tailor workout plans to individual goals.

Strategically, Peloton has been implementing a restructuring plan aimed at achieving positive free cash flow and optimizing costs. The 2024 Restructuring Plan, approved in April 2024, is expected to yield over $200 million in annual run-rate cost savings by the end of fiscal 2025. The company has also expanded its retail presence through partnerships, including a pilot program with Precor to offer Peloton classes on Precor treadmills and a new workout space at the University of Texas at Austin. Looking ahead, Peloton anticipates continued challenges in the market but remains focused on enhancing Member experiences and expanding its product offerings.