Peloton Reports $550.8 Million Revenue, Net Income of $13.9 Million for Q3 2025

Peloton Interactive, Inc. reported a total revenue of $550.8 million for the three months ended September 30, 2025, a decrease of 6% from $586.0 million in the same period last year. The decline was primarily driven by a 4.5% drop in revenue from Connected Fitness Products, which totaled $152.4 million, and a 6.6% decrease in Subscription revenue, which amounted to $398.4 million. The company's gross profit also fell to $283.7 million from $303.8 million, reflecting a gross margin of 51.5%, down from 51.8% in the prior year.

In terms of profitability, Peloton achieved a net income of $13.9 million, compared to a net loss of $0.9 million in the same quarter of the previous year. This improvement was attributed to a reduction in operating expenses, which decreased to $242.4 million from $291.2 million. Notably, sales and marketing expenses were down 18.4% to $66.8 million, and general and administrative expenses fell by 15.6% to $100.8 million. The company also incurred $8.3 million in impairment expenses, up from $4.9 million, primarily due to asset write-downs related to its restructuring efforts.

Peloton's restructuring initiatives, which began in 2022 and continued with a new plan announced in August 2025, aim to enhance operational efficiency and profitability. The company expects to incur approximately $40 million in cash restructuring charges and $5 million in non-cash charges related to asset write-downs. The restructuring is anticipated to yield at least $100 million in annual savings by the end of fiscal year 2026.

As of September 30, 2025, Peloton reported nearly 6 million members, a slight decrease from the previous year. The company also noted a decline in its Average Net Monthly Paid Connected Fitness Subscription Churn to 1.6% from 1.9% year-over-year. The total cash and cash equivalents stood at $1.1 billion, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, Peloton remains focused on expanding its product offerings and enhancing customer engagement. The company recently launched a refreshed portfolio of Connected Fitness Products, including the Cross Training Series, and continues to explore opportunities for geographic expansion. However, the company acknowledges potential risks related to market conditions, competition, and the execution of its restructuring plans, which could impact future performance.