Peloton’s Tumultuous 2025: Losses Shrink but Revenue Keeps Falling
Peloton Interactive faced another challenging year in 2025, with declining revenue and a shrinking user base. Despite these struggles, the company showed signs of financial improvement, cutting losses and boosting profitability. The fitness brand also underwent yet another leadership change as it navigated an uncertain stock market.
The company’s fiscal 2025 results highlighted a mixed picture. Revenue fell 8% to $2.49 billion, while the number of members and subscribers also dropped. Quarterly revenue for September 2025 reached $551 million, a 6% decline from the same period in 2024.
Yet, Peloton managed to reduce its GAAP operating loss dramatically, from $529 million in 2024 to just $36.2 million in 2025. Adjusted EBITDA surged to $403.6 million, up from $3.5 million the previous year. The company even posted a GAAP net income of $14 million in the quarter ending September 2025.
Stock performance reflected the volatility. After a strong rally in late 2024, shares closed 2025 down 29%. Analysts now predict a gradual recovery, forecasting a stock price of $8 by the end of 2026 and $10 by mid-2027. On January 9, 2026, shares traded at $6.84.
Leadership instability continued, with Peloton appointing its fourth CEO in under five years in 2025. Looking ahead, the company expects a slight revenue dip in fiscal 2026, projecting between $2.4 billion and $2.5 billion.
Peloton’s financial improvements suggest cost-cutting efforts are paying off, even as revenue and user numbers decline. The stock market outlook remains cautiously optimistic, with gradual gains expected over the next 18 months. The company’s ability to stabilise operations will likely determine its long-term recovery.
