Why Peloton Stock Is Plunging Today

Peloton Interactive Inc PTON shares are trading lower Thursday after the company reported worse-than-expected financial results and issued guidance below analyst estimates.

Peloton reported fiscal first-quarter revenue of $616.5 million, which missed average analyst estimates of $650.08 million, according to Benzinga Pro. The company said the shortfall was driven by a $26.5 million Tread+ reserve charge, which it accounted for as a reduction to revenue.

Peloton reported a quarterly net loss of $1.20 per share, which missed average estimates for a loss of 65 cents per share.

Peloton ended the quarter with 2.97 million connected fitness subscriptions. Member count declined sequentially to 6.7 million. 

"Peloton’s turnaround remains a work-in-progress, with $199 million in 1Q23 recall reserves, restructuring, and impairment expenses. And not all the changes we’ve implemented are working as well as we’d like– especially as it relates to some last mile delivery and customer service issues. We remain committed to fixing these," the company said in a letter to shareholders.

Peloton expects fiscal second-quarter revenue to be between $700 million and $725 million versus average analyst estimates of $874.01 million. The company expects to end the second quarter with 3 million connected fitness subscriptions.

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PTON Price Action: Peloton has a 52-week high of $40.35 and a 52-week low of $6.66. 

The stock was down 13.7% at $7.45 at time of publication.

Photo: courtesy of Peloton.