Peloton to cut more jobs, forecasts strong 2026 revenue; shares rise
The company also posted a surprise profit for the fourth quarter. The layoffs, along with plans to slash indirect costs and relocate some offices, are expected to help save an additional $100 million by the end of its next fiscal year, Peloton said on Thursday.
CEO Peter Stern, who joined the company in January from Ford Motor (F.N), opens new tab, had kicked off the turnaround effort to address a slump in sales of Peloton's high-end stationary bikes and treadmills following a boom during the COVID lockdowns, when people were looking to work out at home.
In a sign the cost push was bearing fruit, operating expenses fell 20% in the fourth quarter, while general and administrative expenses were down 33% from last year.
Gross margin from its connected fitness products such as technology-enabled home exercise machines rose 900 basis points to 17.3% from a year ago. Gross profit in the segment rose 96% to $34.4 million.
Peloton posted quarterly profit of 5 cents per share, compared with Wall Street estimates for a loss of 6 cents per share.
The company forecast 2026 revenue in the range of $2.4 billion to $2.5 billion, higher than analysts' estimate of $2.41 billion, according to data compiled by LSEG.
The fitness company expects tariffs to dent its 2026 free cash flow expectations by $65 million, and said it will adjust prices to offset the impact of the extra costs.
Total revenue for the quarter ended June was $606.9 million. Analysts, on average, were expecting revenue of $579.80 million in the fourth quarter.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
35 minutes ago
- Daily Mail
Chick-fil-A knocked off top spot as Mexican favorite is crowned America's best fast food
Chick-fil-A is no longer the top fast food chain in America — that title now belongs to Del Taco. It's the second year in a row the Mexican-inspired chain has topped the list, beating out bigger names despite operating just 600 restaurants nationwide. The 61-year-old brand, known for burritos, fries and even vegan options, is owned by Jack in the Box — which itself took second place. A&W secured third place. Meanwhile, Chick-fil-A slipped down the list to fourth after backlash over a recipe tweak to its beloved waffle fries. Some customers even threatened a boycott, calling the change 'gross,' though the chain continues to thrive with more than 3,000 locations across North America. Despite landing top spot, it is not all rosy for Del Taco. Its owners are looking to sell the brand, while a South Carolina-based franchisee Matador Restaurant Group filed for bankruptcy. In fifth in USA Today's annual list was Wendy's, the fast food empire famous for its Dave's burgers and Frosty desserts. It was a move up the list after not cracking the top 10 last year, helped by rolling out a raft of deals in last year's fast food price war. KFC dropped four spots to sixth place in this year's ranking. It was also kicked out of separate ranking of the top chicken chains in the US. Del Taco beat out a variety of restaurants like Chick-fil-A and Taco Bell Its sister brand, Taco Bell, stayed put at seventh place.. Raising Cane's was recently named the top chicken chain but only made number eight in this list. Zaxby's and McDonald's filled the last two spots this year, the latter having made headlines for bringing back its snack wraps. Del Taco is expanding. It is set to enter the Louisville, Kentucky, market with five restaurants, opening between 2026 and 2027. The chicken chain opened over 500 restaurants during that time, while Taco Bell added 24 units to its 8,000+ store amount. While Raising Cane's and Zaxby's finished at eighth and ninth on the list, they're coming for fast food chains by initiating massive US expansions. Their store count is still nothing compared to McDonald's, the largest fast food chain in the nation with first quarter earnings that were less than desirable. Meanwhile, a separate section of USA Today's ratings, Habit Burger & Grill's Double Char was named the nation's best fast food burger. Multiple restaurant chains featured in this year's bast fast food burger ranking kicked other brands off the list In-n-Out Burger's Double Double dropped two places to number four after slipping down the rankings on last year's list. Its humiliation came after CEO Lynsi Snyder sparked outrage after deciding to move the company to Tennessee. A&W and Jack in the Box were praised for its Papa Burger and Jumbo Jack Cheeseburger, coming in at number three and four respectively. Culver's rounded up the top 5 with its double ButterBurger with cheese after missing out on the list last year. Multiple chains have had its financial up and downs this year including Jack in the Box, which is planning to shutter between 150 and 200 locations. filed for bankruptcy last year.
Daily Mail
an hour ago
- Daily Mail
The South Carolina suburb that people from all over US want to move to
A charming South Carolina suburb just minutes from Myrtle Beach has Americans from all over the country flocking to move there. A report from MoveBuddha revealed that Conway has become one of the most popular spots for Americans looking for affordable charm as well as easy beach access. The city surpassed its close neighbor, Myrtle Beach (pictured), just 30 minutes away, which took the top spot in the first quarter of the year but fell to ninth more recently. Conway, one of the oldest towns in the state, offers its 28,000 full-time locals community and charm without forking out a ton of money. 'We've been seeing more and more first-time buyers make their way to Conway,' realty company Shoreline said on its website. 'Right now, the average detached home is running about $298,000 to $300,000,' according to Shoreline who said that 'you're getting a whole lot more house for your money here.' The company also said the area offers 'bigger yards, newer homes, and no crazy HOA fees.' MoveBuddha noted the low housing costs and lack of congestion as attracting buyers to the area, without having to forfeit a 'vibrant community'. 'One of the things our first-time buyers always mention after moving in is how peaceful it is here,' Shoreline said. 'Conway's got that small-town feel that's hard to find these days - quiet neighborhoods, big oak trees, front porches where neighbors actually wave hello. 'You're not living on top of each other, and you're not dealing with non-stop traffic or crowds. It's perfect if you're working from home, raising a family, or just ready for something slower-paced and more personal.' The realty company noted the city's proximity to the beach as well as shopping, restaurants and the airport, allowing for a small-town feel without being too far from any necessities. 'This area's growing at a steady pace,' they added. 'It's not overbuilt or overhyped. You're getting in while the values are still strong and reasonable.' South Carolina overall saw searches to move there sitting at over 22 percent, as the MoveBuddha report said: 'There's been some broadening in migration interest, with lesser-known and previously overlooked destinations gaining ground as formerly popular locations reach saturation and cost limits.' 'This year, smaller locations are becoming more popular, with huge demand and few residents calling it quits. 'That means movers are very interested in just a handful of popular locales, and cities that haven't grown in popularity this year, even if they're maintaining strong migration interest, are falling behind,' the report furthered. More densely packed areas saw many more searches for people looking to move out, including places such as New Jersey, New York and California. 'These states, in addition to being densely populated, face affordability challenges in an America struggling wit persistent inflation and pay that hasn't kept up,' MoveBuddha said. The Southeast proved to be a popular place to move to as South Carolina, North Carolina and Tennessee ranked in the top spots.
Daily Mail
2 hours ago
- Daily Mail
Manufacturing CEO sounds alarm on Trump's steel and aluminum tariffs
A major U.S. manufacturing CEO is sounding the alarm about President Trump's new steel and aluminum tariffs, warning they're actually hurting American companies while foreign competitors gain an unfair advantage. U.S Metal Powders, Inc. CEO Eric Degenfelder told the Daily Mail that the 50 percent tariffs on those elements have backfired spectacularly, driving aluminum prices from about $1.25 to $1.80 'in a matter of a few months' and leaving domestic manufacturers at a severe disadvantage. Degenfelder said the tariffs are boosting foreign competitors because customers are 'buying cheap aluminum in another region and then making aluminum powder and importing it to the U.S.' The White House has imposed steel and aluminum tariffs at 50 percent for most nations. But for the U.K. they are only 25 percent per May's bilateral trade deal. David N. Taylor, President and CEO of the Pennsylvania Manufacturers' Association, told the Daily Mail that he does see the tariffs as a necessary move by the administration to level the playing field in a global market. Taylor noted that historically, Chinese bids on global manufacturing contracts would come in at prices lower than what it costs just to buy the raw materials in the US - even before factoring in manufacturing and shipping costs. He added that those numbers are 'not mathematically possible unless someone ( China ) is cheating.' With the increase in raw material costs, domestic policymakers have sought to give business leaders relief in other areas. Hence, the reason for Thursday's visit to U.S. Metal Powders facility in Palmerton, Pennsylvania by House GOP Conference Chairwoman Lisa McClain, who toured the aluminum powder factory alongside freshman Republican Rep. Ryan Mackenzie. House Republicans were in town to sell the GOP's 'Big, Beautiful Bill,' a package of domestic policy changes, including provisions being pitched to make the lives of manufacturers better. During the facility tour, Degenfelder highlighted a key tax provision that allows businesses to immediately write off the full cost of new equipment purchases, which has enabled companies like his to rapidly expand. McClain acknowledged the short-term pain of shifting to more domestic steel and aluminum facilities, but still thinks it's worth the long-term gain of additional domestic control over supply chains. 'If it was just easy to flip the switch, we would do... We can't flip that switch, but this is the first step in that transition process to begin to have more steel and aluminum right here in the USA,' McClain told the Daily Mail Thursday. The U.S. Metal Powders facility in Palmerton has just built its fourth production line, which will be 'going online' later this month. Degenfelder also plans to hire 15 additional employees from the local community, which will bring his total employee count up to 65. The starting salary at his facility is $22.50 per hour for an entry-level position, which provides ample on-the-job training and only requires a GED.
