Is Peloton Interactive a Zombie Stock -- Dead, but Doesn't Know It Yet?

"Peloton Interactive ( NASDAQ:PTON ) surged during the pandemic as home fitness demand exploded, with revenue peaking at $4.1 billion in fiscal 2021. Since then, it has steadily declined, shedding market value and users. Sales have fallen amid economic pressures, while membership rolls have shrunk as consumers return to gyms or cut spending. Product updates, such as redesigned bikes and treads, have failed to capture broad interest in a price-sensitive market."

"Peloton's Q2 results showed total revenue of $657 million, a 3% decrease from $674 million in the same quarter a year earlier. This figure fell $8 million short of the company's own guidance and missed analyst expectations of $674 million. The decline stemmed mainly from weaker equipment sales to existing customers and some delivery delays that pushed $4 million in revenue into the next quarter."

"Connected Fitness Products revenue, which includes hardware like bikes and treads, totaled $244 million, down 4% year-over-year. Subscription revenue reached $413 million, a 2% drop from the prior year, affected by fewer paid subscribers and reduced content licensing income, though partially offset by price increases. The company posted a net loss of $39 million, or $0.09 per share, an improvement from the $92 million loss, or $0.24 per share, in the year-ago period, but worse than the expected $0.06 loss."

Peloton's revenue peaked at $4.1 billion in fiscal 2021 and has declined since as market value and user counts fell. Q2 fiscal 2026 total revenue was $657 million, down 3% year-over-year, missing company guidance by $8 million and analyst expectations. Equipment revenue fell as Connected Fitness Products totaled $244 million, down 4%. Subscription revenue decreased to $413 million, down 2%, driven by fewer paid subscribers and lower content licensing. Net loss narrowed to $39 million, though worse than expected, while adjusted EBITDA rose 39% to $81 million due to cost controls. Paid connected subscriptions fell 7% to 2.661 million.

Read at 24/7 Wall St.