Peloton (PTON) UBS Global Media & Communications Conference summary

Business transformation and cost optimization

• Shifted from high fixed cost structure to variable model by outsourcing manufacturing and logistics.

• Reduced headcount and retail showroom footprint, and implemented price increases to improve margins.

• Launched a $200 million cost restructuring plan, aiming for an annualized run rate by end of FY2025.

• Achieved three consecutive quarters of positive free cash flow and Adjusted EBITDA.

• Further cost optimization expected in FY2026, focusing on G&A, legal expenses, tech debt, and member support efficiency.

Profitability and financial guidance

• Targeting at least $125 million in free cash flow and $240–$290 million in Adjusted EBITDA for FY2025.

• Confident in achieving profitability targets even with declining top-line revenue.

• Marketing spend is disciplined, with media spend expected to be materially down year over year.

• LTV to CAC target is 2x–3x, with current progress focused on pricing, reduced promotions, and improved media efficiency.

Revenue growth and market opportunities

• Connected fitness hardware sales in the U.S. are declining but at a decelerating rate, suggesting a potential inflection point.

• FY2025 guidance anticipates a decline in both connected fitness and paid app subscribers, but long-term CAGR remains strong.

• Tread and Tread+ identified as major growth opportunities, with demand outpacing supply for premium products.

• Marketing campaigns are targeting new demographics, especially men, and leveraging high-profile events and partnerships.