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Peloton Interactive Inc. (PTON-2.65%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a decrease in Connected Fitness Products revenue to $253.4 million from $319.1 million in the same quarter the previous year. This decrease is attributed to lower demand across product categories, except for Tread+ which resumed sales.
Subscription revenue was $420.6 million, a slight decrease from $424.5 million in the same quarter the previous year. The decrease is due to lower Paid Connected Fitness and App Subscriptions, partially offset by content licensing revenue.
Total revenue decreased to $673.9 million from $743.6 million in the previous year. Gross profit increased to $318.4 million from $299.4 million, driven by improved Connected Fitness Products gross margin.
Operating expenses were $364.3 million, down from $486.5 million the previous year. This decrease was primarily due to reduced marketing and general administrative expenses.
Net loss for the quarter was $92.0 million, compared to $194.9 million in the previous year. The improvement is attributed to reduced operating expenses and increased gross profit.
Peloton reported cash and cash equivalents of $829.0 million as of December 31, 2024. The company anticipates that existing cash balances and cash flow from operations will be sufficient to meet its working capital and capital expenditure needs for the next 12 months.
The company continues to implement its restructuring plan to reduce expenses and improve cost structures. The restructuring plan is expected to result in reduced annual run-rate expenses by more than $200 million by the end of fiscal year 2025.
Peloton issued $350.0 million of 5.50% Convertible Senior Notes due 2029 and repurchased $801.0 million of its 0.00% Convertible Senior Notes due 2026. The company also entered into a Third Amended and Restated Credit Agreement providing a $1.0 billion term loan facility.
The filing also discusses risks related to global trade policies, inflation, and foreign currency exchange rates, which could impact the company's financial performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Peloton Interactive Inc. quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.