Peloton (PTON) Citi’s 2025 Global Technology, Media and Telecommunications Conference summary

Leadership and strategic evolution

• New CEO and executive team have been installed, including CMO, COO, CTO, and CIO, to drive the next phase of growth and operational rigor.

• Strategic roadmap is focused on sustainable, profitable growth, with a three-phase turnaround: cost alignment, sustainable operations, and a return to growth with a de-risked balance sheet.

• Emphasis on maximizing shareholder value through capital allocation and business excellence.

• Fit for Growth initiative introduced to optimize spend and reallocate savings to strategic investments.

• Leadership changes are seen as complete and positioned to execute the new strategy.

Product innovation and personalization

• AI-driven personalization is a key focus, with 700,000 members using personalized plans, leading to higher engagement.

• Plans for deeper personalized guidance, holistic onboarding, and third-party device integration are underway.

• New product and hardware updates are expected to be announced soon.

• Expansion into new verticals: strength, sleep and recovery, mental well-being, and nutrition/hydration, all prioritized for their size, growth, and science-backed benefits.

Member base, retention, and marketing

• Connected fitness subscriptions total around 2.8 million, with a loyal base of 6 million members.

• Churn rate improved year-over-year for the first time since 2021, with increased engagement and workout time.

• Marketing spend reduced by over 35% year-over-year, improving LTV to CAC ratio by 30% in fiscal 2025.

• Focus on evolving marketing and messaging to drive gross additions and retain members for life.