Peloton: A Costly Turnaround
From “Peloton: A Steep Hill” (February 2025):
“I’m focused on three key factors: (1) their ability to stabilize, and then grow, CF Product and subscription revenues; (2) their ability to improve CF Product gross margins, such that this business contributes >$100 million of gross profits on current volumes; and (3) their ability to drive continued OpEx improvements, with historic results suggesting it isn’t overly demanding to expect run rate OpEx on current revenues to decline by $200 - $400 million.”
On October 1st, Peloton announced a series of equipment and software updates across its range of offerings, along with a price increase on its All-Access (CF) membership to $49.99 per month; inclusive of the June 2022 price increase, from $39 per month to $44 per month, the monthly price for All-Access has risen by nearly 30% over the past three and a half years.
