Peloton reports Q3 revenue beat as EPS misses estimates

7 articles · Updated · CNBC · May 7

Revenue reached $630.9 million against $617.6 million expected, while earnings were 6 cents a share versus 7 cents forecast; net income was $26.4 million.
Sales rose about 1% year on year, free cash flow jumped nearly 60%, and Peloton lifted the low end of its full-year revenue outlook to $2.42 billion-$2.44 billion.
Higher subscription prices and stronger equipment sales helped offset a drop in paid connected fitness subscribers to 2.66 million, as Peloton pursues partnerships including Spotify and new gym-focused products.

Can Peloton's Spotify deal create new growth, or does it risk devaluing its premium subscription model?

Is Peloton's newfound profit a true turnaround or a mirage built on a shrinking user base?