Financial Performance: Peloton recorded revenues of $718 million, a 3.48% decrease QoQ. Despite declining hardware sales, the subscription revenue segment, which constitutes 61% of total revenue, remained robust with $438 million reported. The gross profit increased to $310 million, achieving a gross margin of 43.1%, surpassing internal expectations.
Free Cash Flow: The company achieved $9 million in free cash flow, the first positive indicator since 2021, demonstrating improved financial management.
Churn and Subscriber Metrics: The company reported an average churn rate of 1.2% for Connected Fitness subscriptions, lower than projections, while paid app subscription churn rose to 9.2%.