Peloton said that the tariffs were not sweated in his earnings from 2025, noting that it is “mainly subscription business”, admitting that macroeconomic uncertainty can affect the demand for his exorbitant motorcycles and treadmills.
“During the decline in GDP in 2008–2009, external data showed that US expenditure[ing] In the case of fitness, it has been constantly growing, which means that the fitness industry has some resistance to external economic factors, “said Peloton Liz Coddington at the call of earnings, at the same time emphasizing the company’s main revenues that consumers are intended and times have a faithful base of subscribers.
Peloton revealed in his own Shareholder’s letter How tariffs affect his activities. His equipment is subject to 25 percent tariffs due to the employ of aluminum, while its clothing is subject to all tariffs applied to China. As part of the Q4 forecast, Peloton said that as a result he was expecting about $ 5 million in the case of free cash flows.
While Peloton disregarded the influence of tariffs, the fact is that Peloton equipment is not the cheapest on the market. To this end, Coddington willingly emphasized that Peloton offers zero percent funding of interest, bicycle rental program, as well as lower models renewed. Stern also said that the company cooperated with partners to “pilot dedicated vans equipped with Peloton spare parts” to repair to raise customer satisfaction. Stern also shared that the company appointed New Operational Director Charles Kirolwhose main goal is to focus on the logistics of the supply chain and cost management.
CEO Peter Stern added that the company considers prices, “taking into account the impact of tariffs.” When it comes to subscriptions, Stern refused to comment, but he noticed that almost three years have passed since the company raised subscription prices.
In general, Peloton recorded losses, and the sale of equipment dropped by 27 percent year on year, and revenues from the subscription dropped by four percent in the same period. Despite this, the company raised perspectives from USD 247.6 to USD 247.7 million.
A little more except the left field, Stern devoted some time to emphasize how AI would facilitate Peloton improve customer satisfaction and performance. “I think AI can give people a superpower, so we use artificial intelligence,” says Stern. As for how the company uses artificial intelligence, Stern discussed above all how customer service employees now have an AI agent to facilitate them take notes about calls. Peloton also added a powered AI translations to write his classes. He says that the subtitle of 3300 classes in this way in Q3 and accelerated to translating about 100 classes a day using AI.
Stern also noticed that Peloton “implements Google Gemini in most members of the Peloton team” because it would allow them to employ “large creative brains for great creative thinking.” He added that Peloton also uses artificial intelligence in personalized plans in which the company “takes[s] Our amazing human instructors and allow[s] Basically, they create a program so that we feel a more personal coach. “Launched in the third quarter, Stern claims that the company already has up to half a million personalized plans.
“The future is clear for Peloton members from AI,” he said.