Peloton Stock Turbocharged by Surprise Revenue Growth

Peloton Interactive (PTON) shares raced more than 35% higher in intraday trading Thursday after the company posted year-over-year quarterly revenue growth for the first time in more than two years.

The home fitness equipment and subscription company posted revenue of $643.6 million in its fiscal fourth quarter, up 0.2% year-over-year—its first quarterly gain since Q2 2022—and well above analysts' expectations, per Visible Alpha. Subscription revenue was $431.4 million, 2.3% higher. 

Peloton also delivered a narrower-than-expected loss of $30.5 million, or 8 cents per share, compared with $241.8 million, or 68 cents per share, a year earlier. 

Peloton Notes 'Continued Focus' on Costs

"Our improvement in profitability reflects our continued focus on aligning our costs with the size of our business," Peloton said. "We made substantial progress toward achieving over $200 million run-rate cost savings from our restructuring plan announced in May, delivering approximately $15 million in cost savings in the quarter."

Peloton called for fiscal 2025 revenue of $2.4 billion to $2.5 billion, which would be a 9% drop from fiscal 2024 at the midpoint and below Visible Alpha consensus of $2.68 billion. 

In May, Peloton announced new cost-cutting measures, including layoffs, and that CEO Barry McCarthy was stepping down. On Thursday, it noted that its process to find a new CEO "is well underway and we look forward to sharing more when we have an announcement."

Shares of Peloton surged 37% to $4.60 as of 1:15 p.m. ET Thursday.