economy
February 5, 2026
Peloton shares plunge 26% on weak holiday quarter, sluggish demand for splashy new products
Peloton's product overhaul was designed to bring in new customers and encourage existing members to trade up. Instead, shoppers turned away from higher prices.
TL;DR
- Peloton missed sales expectations for its holiday quarter, with both hardware and subscription revenue falling short.
- The company's new AI-driven product line and higher prices did not drive expected sales growth.
- Despite weak sales, Peloton improved its profitability and raised its full-year adjusted EBITDA guidance.
- CFO Liz Coddington is leaving the company.
- The commercial business unit saw a 10% revenue increase during the quarter.
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