The Changing Narrative at Peloton

November 8, 2025

This has the potential to breakout.

That’s what I’m thinking as I see these results. This management team, reconstituted since the beginning of the year, actually knows what it’s doing. A revamped product line, a refocused 4 point strategy that’s communicated effectively, a renewed emphasis on super serving existing customers, all performed with a keen eye on financial discipline.

Yeah, this has the potential to breakout . . . after lying in wait these few quarters.

Let’s go Peloton.

The company reported Q1 2026 results yesterday, and if it isn’t clear, it should be. This retooled business has the wherewithal to really generate significant cash flows. Since the termination of Barry McCarthy as the CEO, the interim-CEOs and now Peter Stern, have habitually set low guidance bars. The conservatism’s justified given the historical execution. Under McCarthy, the strategy to deliver fitness via an “app strategy” alone drove the company to near bankruptcy. What matters in the end wasn’t the way the content was delivered, what matters is how connected the community feels, and how much value the company delivers its patrons.