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Peloton Struggles in Holiday Quarter Despite Product Overhaul

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Briefs Finance
Published Feb 5, 2026
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A stationary Peloton bike with a large red bow is surrounded by torn gift wrap and opened boxes in a dimly lit room, capturing the excitement of the holiday quarter.
Summary:

  • Peloton reported a net loss of $38.8 million, or 9 cents per share, for the holiday quarter, an improvement from a loss of $92 million, or 24 cents per share, a year earlier.
  • Sales fell to $656.5 million, down 3% from $673.9 million the previous year, and below Wall Street's expectations of $638 million.
  • For the current quarter, Peloton forecasts revenue between $605 million and $625 million, below the anticipated $638 million.

Poor Holiday Performance

Peloton posted disappointing results for its holiday quarter, which ended on December 31, 2025. The connected fitness company reported a net loss of $38.8 million, or 9 cents per share.

This marks a significant improvement compared to a net loss of $92 million, or 24 cents per share, in the same quarter last year. However, despite this improvement, Peloton's revenue fell short of expectations.

Sales Figures Miss Expectations

Peloton's sales for the holiday quarter were $656.5 million, which is a 3% decrease from $673.9 million a year prior. This figure also missed Wall Street's expectations, which were set at $638 million.

The company attributes the weak performance to sluggish demand for its newly launched AI-driven product line and higher subscription prices.

Future Projections

Looking ahead, Peloton has forecasted revenue for the current quarter to be between $605 million and $625 million. This forecast is below Wall Street's expectation of $638 million. The company has indicated that it expects sales to remain sluggish in the near term.

Profitability Improvements

Despite the weak sales figures, Peloton has been able to improve its profitability. During the holiday quarter, the company generated $81 million in adjusted EBITDA, which exceeded analyst expectations of $73 million.

Furthermore, Peloton raised its full-year adjusted EBITDA guidance to between $450 million and $500 million, an increase from the previous estimate of $425 million to $475 million. This positive news suggests that the company can innovate without significantly impacting its profitability.

Leadership Changes

Peloton also announced a leadership change as CFO Liz Coddington is set to leave the company to pursue an opportunity outside the industry.

She will remain with Peloton until March 2026 as the company searches for a new finance chief.

Conclusion

Overall, Peloton's holiday quarter results show a mix of improvements in profitability but disappointing sales figures.

The company's efforts to revamp its product line with AI features have not yet translated into the expected sales growth. Investors will be watching closely as Peloton navigates these challenges in the upcoming quarters.

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