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Peloton Posts a Mammoth Loss of $757 Million, Preps Subscription Price Hike

A Peloton store on Main Street in Westport, CT. is seen in February. The fitness equipment manufacturer on Monday announced the departure of two of its founders. PHOTO MIROMIRO ISTOCK

Peloton (New York) said it lost $757 million in its first quarter, dwarfing the deficit Wall Street expected, per CNBC.

In the three-month period ending March 31, the loss per share was $2.27, far from the $0.83 per-share-loss as predicted by analysts. Revenue dropped from $1.26 billion a year earlier to $964.3 million.

To mitigate the impact of reduced demand for its connected fitness equipment, Peloton is planning a price increase for its subscription services, the article says. However, there’s concern this hike will prompt cancellations.

Barry McCarthy, CEO of Peloton, says he believes he can get the company free cash flow-positive by 2023. Recently, the brand also entered into a commitment with Goldman Sachs and JPMorgan to borrow $750 million in five-year term debt.

VMSD Staff

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