Peloton Interactive, Inc. announced its fiscal third quarter 2025 financial results, reporting a net loss of $48 million, an improvement from a $167 million loss in the prior year. Revenue for the quarter was $624 million, a 13% decrease year-over-year, but exceeded the midpoint of guidance by $9 million. The company achieved $89 million in adjusted EBITDA, surpassing its guidance.
Total gross profit for the quarter was $318 million, an increase of 3% year-over-year. Connected Fitness products gross margin increased to 14.3%, while subscription gross margin was 69%. Operating expenses decreased by 23% year-over-year, and the company remains on track to achieve its target of $200 million in annualized run-rate cost savings by the end of fiscal 2025.
Connected Fitness subscriptions ended the quarter at 2.88 million, a 6% decline year-over-year, though net Paid Connected Fitness subscriptions saw slight quarter-over-quarter growth. Subscription churn improved to 1.2% in Q3, down from 1.4% in Q2. Paid App subscriptions totaled 573,000, a net increase of 12,000 in the quarter.
Peloton raised its full-year fiscal 2025 revenue guidance midpoint by $7.5 million, with a new range pitched at $2.46 billion to $2.47 billion. However, the company downgraded expectations for its app subscriptions to between 540,000 and 550,000, reflecting an anticipated decline of approximately 30,000 users. CEO Peter Stern highlighted progress in improving member outcomes, expanding market reach, and enhancing efficiency, noting that nearly 500,000 members had adopted Personalized Plans by the end of Q3.
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