Peloton Shares Surge 24% on Strong Q4 Results, But Guidance Falls Short

Peloton Interactive, Inc. (NASDAQ:PTON) saw its shares surge more than 24% intra-day today after delivering stronger-than-expected fourth-quarter results and marking its first return to revenue growth in two years.

The fitness equipment maker posted a narrower-than-expected loss of $0.08 per share, beating analyst projections of a $0.17 loss. Revenue reached $643.6 million, surpassing the consensus estimate of $628.47 million and showing a modest 0.2% year-over-year increase.

Peloton’s subscription business played a pivotal role, with revenue rising 2.3% year-over-year to $431 million. The company also reported improved profitability, with Adjusted EBITDA of $70 million, up $105 million from the prior year.

However, Peloton’s outlook for Q1 and full fiscal year 2025 fell short of expectations. The company projected Q1 revenue between $560 million and $580 million, lower than the $602 million consensus, and full-year revenue of $2.4 billion to $2.5 billion, below the expected $2.69 billion.

Despite the softer guidance, investors were encouraged by Peloton’s return to growth and enhanced profitability, as well as the company’s progress in cost-cutting efforts, which included $15 million in savings during Q4 from its restructuring plan.