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A number of private equity firms have been considering a buyout of Peloton as the connected fitness company looks to refinance its debt and get back to growth after 13 straight quarters of losses, CNBC has learned. A number of other private equity firms have been circling Peloton as an acquisition target, but it's unclear if they have held formal discussions. Last week, Peloton announced a broad restructuring plan that's expected to reduce its annual run-rate expenses by more than $200 million by the end of fiscal 2025. Last week, Peloton announced CEO Barry McCarthy would be stepping down as it issued a disastrous earnings report that missed Wall Street's expectations. One source close to the company said Peloton isn't expected to have any issues refinancing its debt.

Persons: Barry McCarthy, Goldman Sachs Organizations: Interactive, CNBC, JPMorgan Locations: New York

☆ Here's how much money you'd have lost if you invested $1,000 in Peloton when it went public
▼ + stars: | 2024-05-03 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +2 min

As the company searches for a new CEO, Peloton Chairperson Karen Boone and Peloton Director Chris Bruzzo will serve as interim co-CEOs. How much you'd have if you invested $1,000 in PelotonPeloton has come a long way from when the company was founded in 2012. If you had invested $1,000 in Peloton in 2019, 2021 or 2023, here's how much it would be worth now. CNBC's calculations are based on the company's May 2 closing share price of $3.13. And if you had invested $1,000 in Peloton in 2019 when it first went public, your investment would have decreased by about 89% and be worth about $108 as of May 2.

Persons: it's, Barry McCarthy, John Foley, He'll, Karen Boone, Chris Bruzzo Organizations: Interactive Locations: New York

☆ Peloton's CEO steps down as the company cuts 15% of staff
▼ + stars: | 2024-05-02 | by ( Grace Dean | ) www.businessinsider.com time to read: +2 min

Peloton CEO Barry McCarthy is stepping down, the fitness company announced on Thursday. After reaching new highs during the pandemic, the company has recalled products, laid off workers, and seen sales and its stock tank. McCarthy replaced John Foley as Peloton CEO and president in February 2022. But since then, the company has recalled products, laid off thousands of workers, and seen sales and its stock tank. It posted a net loss for the quarter of $167.3 million, down from $275.9 million for the same quarter in 2023.

Persons: Barry McCarthy, —, McCarthy, John Foley, Karen Boone, Chris Bruzzo Organizations: Service Locations: Ohio

☆ Peloton CEO Barry McCarthy to step down, company to lay off 15% of staff as it looks to refinance debt
▼ + stars: | 2024-05-02 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +9 min

In a letter to staff, McCarthy said the company needed to implement layoffs because it wouldn't be able to generate sustainable free cash flow with its current cost structure. "Achieving positive [free cash flow] makes Peloton a more attractive borrower, which is important as the company turns its attention to the necessary task of successfully refinancing its debt," McCarthy said in the memo. McCarthy had also expected Peloton to reach positive free cash flow by June — a goal the company said it reached early during its third quarter. In a letter to shareholders, Peloton said it generated $8.6 million in free cash flow but it's unclear how sustainable that number is. The company didn't provide specific guidance on what investors can expect with free cash flow in the quarters ahead but said it does expect to "deliver modest positive free cash flow" in its current quarter.

Persons: Barry McCarthy, McCarthy, Karen Boone, Chris Bruzzo, Jay Hoag, It's, John Foley, hasn't, Goldman Sachs, Boone, Barry, Bruzzo, —, hadn't, Creditsafe, it's, Foley Organizations: Interactive, Allen & Company Sun Valley Conference, Spotify, Netflix, JPMorgan, LSEG, outperformance, CNBC Locations: Sun Valley , Idaho, lockstep

☆ Stocks making the biggest moves midday: Apple, Peloton, Wayfair, Carvana and more
▼ + stars: | 2024-05-02 | by ( Brian Evans | ) www.cnbc.com time to read: +3 min

Check out the companies making headlines in midday trading: Apple — Shares ticked up roughly 2% ahead of the iPhone maker's second-quarter results due after the closing bell. Wayfair said it lost 32 cents per share on an adjusted basis, narrower than the estimate of a loss of 44 cents from analysts polled by LSEG. Etsy reported adjusted earnings of 48 cents per share, while analysts polled by LSEG called for 49 cents a share. EBay said it expects revenue in the range of $2.49 billion to $2.54 billion, while analysts polled by LSEG forecast $2.56 billion. Qorvo now expects earnings of 60 cents to 80 cents per share, while analysts polled by FactSet expected $1.27.

Persons: Barry McCarthy, Wayfair, Cigna, DoorDash, Etsy, LSEG, Zillow, Qorvo, FactSet, — CNBC's Pia Singh, Tanaya Macheel, Samantha Subin, Hakyung Kim, Lisa Kailai Han, Alex Harring Organizations: Apple, —, Qualcomm, LSEG . Revenue, Moderna, LSEG, eBay —, EBay, Revenue

☆ Peloton Chief Executive Steps Down as Company Cuts 15% of Staff
▼ + stars: | 2024-05-02 | by ( J. Edward Moreno | More About J. Edward Moreno | ) www.nytimes.com time to read: +1 min

Peloton said on Thursday that its chief executive, Barry McCarthy, was stepping down and it would lay off more workers, as it continued to struggle in the fitness market. The connected-fitness company announced disappointing quarterly earnings on Thursday, with revenue down 4 percent from last year. The company, which has not turned a profit since December 2020, is also looking to refinance more than $1 billion in debt. Peloton had a spectacular rise at the start of the pandemic, when gyms and fitness centers closed and consumers were hungry for at-home workout options. But after gyms reopened, Peloton began to face stiffer competition from companies like Bowflex and Lululemon.

Persons: Barry McCarthy, Kevin Dietsch Organizations: Spotify, Netflix

☆ Peloton cuts jobs and is looking for a new CEO after its turnaround plan spins out
▼ + stars: | 2024-05-02 | by ( Jordan Valinsky | ) edition.cnn.com time to read: +2 min

New York CNN —Peloton CEO Barry McCarthy is leaving his role, and the company is cutting about 15% of its workforce as numerous attempts to regain its pandemic-era glory have failed. McCarthy, who was named CEO just two years ago, will become a strategic advisor through the end of the year, Peloton said in a press release. In his place, Peloton has started a “comprehensive search process” for his replacement and two executives will become interim co-CEOs in the meantime. Peloton also announced that it’s eliminating 400 jobs, which will help the company cut $200 million in costs. McCarthy, a former chief financial officer of Spotify and Netflix, tried to engineer a number of ideas to turn around Peloton.

Persons: Barry McCarthy, McCarthy, Lululemon Organizations: New, New York CNN, Spotify, Netflix, Consumer Product Safety, Sporting Goods Locations: New York

☆ Stocks making the biggest premarket moves: Peloton, Carvana, Cigna, Qualcomm and more
▼ + stars: | 2024-05-02 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Carvana — The used car seller spiked 36% after posting first-quarter revenue Wednesday of $3.06 billion, above analysts' consensus estimate of $2.67 billion. Cigna — The insurer moved 1% higher after first-quarter adjusted earnings of $6.47 per share topped the $6.22 expected from analysts polled by LSEG. Zillow estimated second-quarter revenue of $525 million to $540 million, versus $559.2 million expected from analysts polled by FactSet. Freshworks — The software development company plunged 27% after projecting second-quarter revenue of $168 million to $170 million and full-year revenue of $695 million to $705 million. Analysts polled by FactSet expected $172.1 million for the quarter and $708.3 million for the year.

Persons: Barry McCarthy, Carvana, Morgan Stanley, Cardinal, Nio, Zillow, LSEG, FactSet, Qorvo, —, Jesse Pound, Lisa Han, Pia Singh, Tanaya Macheel Organizations: Qualcomm, LSEG, LSEG . Revenue, Health, FactSet, eBay Locations: Nio —, LSEG

☆ Peloton quietly drops unlimited free app membership because it failed to bring in paid subscribers
▼ + stars: | 2024-04-15 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +3 min

Peloton has quietly removed its unlimited free-membership tier on its fitness app less than a year after it debuted because the initiative was failing to convert users into paid subscribers, the company said. People who signed up for the company's unlimited free membership before it was removed will continue to have access to it, Peloton said. McCarthy, a former Netflix and Spotify executive, had long wanted a free tier on the company's app. Soon after, the unlimited free tier was no longer available. While app subscribers declined during Peloton's fiscal second quarter ended Dec. 31, Coddington said the company still "believe[s]" in its app strategy and it remains "an important part of the business."

Persons: Barry McCarthy, McCarthy, Morgan, Liz Coddington, Coddington, we'll Organizations: Netflix, Spotify Locations: Manhattan, New York City, U.S

☆ Retailers like Peloton and Saks keep paying vendors late, signaling possible 'financial distress'
▼ + stars: | 2024-04-04 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +13 min

To be sure, late payments don't always signal financial troubles. Creditsafe spokesperson Ragini Bhalla said payment data is only one factor the firm considers when assessing a company's financial health. Though the data "doesn't represent a company's total trading behavior, analysis has proven that it is hugely predictive of a company's financial health and creditworthiness," Bhalla said. "When the number of late payments increases like this, it's often indicative of financial challenges and poor cash flow forecasting," Creditsafe said. While Saks often made late payments last year, its on-time payments have dropped significantly since October 2023, the firm said.

Persons: Saul Loeb, Perry Mandarino, Mandarino, Creditsafe, Ragini Bhalla, Bhalla, Barry McCarthy, Simeon Siegel, Siegel, he's, Peloton's DPO, Marc Metrick, Metrick, Mark Still, Stewart Glendinning, Tim Baxter Organizations: Saks, Washington , D.C, AFP, Getty, Bed, RadioShack, CNBC, Retailers, Body, Body Works, Riley Securities, BMO Capital Markets, Business of Fashion, HBC, Express, Street, Creditsafe, Economic Security, IRS, New York Stock Exchange, Bath Locations: Washington ,, Express, Creditsafe, U.S

Sales fell to $744 million in the second quarter, which company executives consider its most important quarter. That amounts to a 6% decline from a year ago and a whopping 34% fall from two years ago. New York-based Peloton lost 54 cents per share in the period and hasn't posted a quarterly per-share profit in three years. Peloton enjoyed incredible sales growth during the height of the coronavirus pandemic and its share price multiplied by more than five times in 2020 amid lockdowns. Last fall, Peloton and athletic wear maker Lululemon announced a five-year partnership with the interactive fitness company, becoming the exclusive digital fitness content provider for Lululemon, which became the primary athletic apparel partner to Peloton.

Persons: hasn't, Barry McCarthy, treadmills, John Foley, Lululemon Organizations: University of Michigan Locations: New York

☆ Peloton posts mixed holiday results, dismal quarterly guidance
▼ + stars: | 2024-02-01 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +6 min

A Peloton Bike inside a showroom in New York, US, on Wednesday, Nov. 1, 2023. The company issued dismal guidance for the current quarter and a tepid full-year sales outlook. For its fiscal third quarter, Peloton expects sales to be between $700 million and $725 million, compared to a Wall Street estimate of $754 million, according to LSEG. The company expects its adjusted EBITDA loss to be between $20 million and $30 million, compared to analyst estimates of a loss of $2 million, according to StreetAccount. "We saw exceptionally strong sales growth through these channels this holiday season, with Y/Y unit growth of 74% in Q2," McCarthy said.

Persons: Barry McCarthy, Liz Coddington, McCarthy Organizations: Interactive, Wall, LSEG, Sporting Goods, Dick's Sporting Goods, University of Michigan Locations: New York, Ohio

☆ Peloton shares plunge as turnaround plan garners mixed results
▼ + stars: | 2024-02-01 | by ( Jordan Valinsky | ) edition.cnn.com time to read: +3 min

New York CNN —Peloton shares slid more than 20% Thursday after the fitness company said it expects to report another loss in the current quarter and is trimming its full-year revenue forecast, signaling that its several years-long turnaround is spinning out. CEO Barry McCarthy wrote in a letter to investors that some of his ideas have failed, including a push into selling Peloton bikes with college colors. McCarthy revealed that the company “sold substantially fewer bikes to alumni and boosters than we expected.” The short-lived program will be discontinued. He said the experience has “tarnished our brand” and that the busy holiday shipping season was “particularly taxing” for customers. The connected fitness company adjusted its full-year revenue lower from the previous $2.7 billion to $2.8 billion expected, with Peloton now forecasting it to be between $2.68 billion and $2.75 billion.

Persons: Barry McCarthy, McCarthy, Lululemon “, TikTok Organizations: New, New York CNN, Sporting Goods, Consumer Product Safety Locations: New York

☆ Peloton hit with issues during world-record ride attempt on Thanksgiving Day
▼ + stars: | 2023-11-23 | by ( Monica Melton | Aaron Mok | ) www.businessinsider.com time to read: +3 min

Peloton's annual 45-minute Turkey Burn Ride appeared to have crashed during the session. The fitness company's Turkey Burn Ride, a 45-minute live bike ride hosted by fitness instructor Robin Arzón, attempted to hit the Guinness World Record for the largest live cycling class. Other Peloton users said they were unable to join the Turkey Burn Ride for an extended period of time. Advertisement"This is garbage," a Peloton user who claims he was set to do the Turkey Burn ride wrote on X. !," a Peloton user commented on the company's Instagram post regarding the Turkey Burn ride.

Persons: Peloton's, —, Robin Arzón, Robin, I've, Barry McCarthy Organizations: Service, couldn't, YouTube Locations: Turkey, @RobinNYC

☆ Peloton shares sink on wider-than-expected loss, 'bad news' for paid subscriptions
▼ + stars: | 2023-11-02 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +5 min

Michael Nagle | Bloomberg | Getty ImagesShares of Peloton sank about 6% in premarket trading Thursday after the company reported a wider-than-expected quarterly loss, a tepid holiday forecast and "bad news" for paid subscriptions. That falls short of the $763.2 million analysts had expected for the company's fiscal second quarter, according to LSEG. It's forecasting paid app subscriptions to be between 660,000 and 680,000, representing a 21% year-over-year drop off and 12% sequential churn. For the full year, Peloton expects paid app subscriptions to drop 6% to between 700,000 and 850,000 and revenue to fall 2% to $2.7 billion to $2.8 billion. It ended the quarter with 763,000 paying Peloton app subscribers, 65,000 fewer than the prior quarter.

Persons: Michael Nagle, Barry McCarthy, McCarthy Organizations: Interactive, Bloomberg, Getty, LSEG Locations: New York, U.S, Canada

☆ Peloton co-founder and Chief Product Officer Tom Cortese is leaving the company
▼ + stars: | 2023-09-26 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +1 min

Peloton co-founder and Chief Product Officer Tom Cortese is leaving the company and will be replaced by longtime Silicon Valley veteran Nick Caldwell, the company announced Tuesday. Cortese, who helped found the connected fitness company alongside former CEO John Foley in 2012, will move into an advisory role beginning Nov. 1, the company said. He'll oversee global product development and will start the new role Nov. 1. "I want to thank Tom for his tireless dedication since launching Peloton nearly 12 years ago as a Co-Founder of the business. "Nick brings impressive engineering, design, and product experience to the Peloton team.

Persons: Tom Cortese, Nick Caldwell, Cortese, John Foley, " Cortese, I'm, Caldwell, He'll, Tom, Barry McCarthy, Nick Organizations: Silicon, Twitter, Google, Microsoft

☆ Instacart files to go public on Nasdaq to try and unfreeze tech IPO market
▼ + stars: | 2023-08-25 | by ( Hayden Field | ) www.cnbc.com time to read: +6 min

Instacart, the grocery delivery company that slashed its valuation during last year's market slide, filed its paperwork to go public on Friday in what's poised to be the first significant venture-backed tech IPO since December 2021. In May, Instacart said it was leaning into the generative AI boom with Ask Instacart, a search tool that aims to answer customers' grocery shopping questions. Instacart will try and crack open the IPO market, which has been mostly closed since late 2021. In March of last year, Instacart slashed its valuation to $24 billion from $39 billion as public stocks sank. Apoorva Mehta, Instacart's founder and executive chairman, plans to transition off the board after the company's public market debut, according to a 2022 release.

Persons: Instacart, Fidji Simo, haven't, Japan's SoftBank, Uber, They've, Simo, Mark Zuckerberg, Apoorva Mehta, Barry McCarthy, Snowflake, Frank Slootman, Andreessen Horowitz's Jeff Jordan, Shipt, Goldman Sachs, Nick Giovanni Organizations: Nasdaq, PepsiCo, Maplebear Inc, Target, Walmart, Meta, Walmart Grocery, Google, Sequoia Capital, DJ Capital Partners, Norges Bank Investment Management, TCV, D1 Capital Partners, Valiant Capital Management Locations: what's

☆ Peloton misses target of positive cash-flow by end of 2023, shares fall
▼ + stars: | 2023-08-23 | by ( ) www.reuters.com time to read: +1 min

A stationary bicycle inside of a Peloton store is pictured in the Manhattan borough of New York City, U.S., January 25, 2022. REUTERS/Carlo Allegri/File Photo/File Photo Acquire Licensing RightsAug 23 (Reuters) - Peloton Interactive (PTON.O) on Wednesday pushed back its cash-flow positive target to 2024 after it failed to achieve it this year as expected earlier, sending its shares tumbling down 26% in premarket trading. "We do expect to achieve this objective once again in the second half of FY24," Peloton CEO Barry McCarthy said in a letter to shareholders on Wednesday. Peloton's revenue in the fourth quarter fell to $642.1 million from $678.7 million a year earlier. Revenue from connected fitness products fell to $220.4 million from $295.6 million, while subscription revenue were up to $421.7 million from $383.1 million a year earlier.

Persons: Carlo Allegri, Barry McCarthy, Kannaki, Shinjini Organizations: REUTERS, Wednesday, Thomson Locations: Manhattan, New York City, U.S, Bengaluru

☆ Peloton shares drop 25% after posting wider than expected loss, falling sales
▼ + stars: | 2023-08-23 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +4 min

Peloton on Wednesday reported a wider than expected loss and a quarterly drop in new subscribers that it blamed on its recall of its Bike seat post and seasonality, sending shares plunging about 25% in premarket trading. It ended the quarter with 3.08 million subscribers, up 4% year over year and in line with the company's expectations. But compared to last quarter, subscribers declined by 29,000. The former Netflix and Spotify executive has spent the last three months focusing on new strategies aimed at getting the fitness company back on a path to growth. Clients include Volvo, which has Peloton bikes in its company fitness center and offers employees access to the Peloton app, its all access membership and discounts on hardware, including the Bike, Bike+, Tread and Guide.

Persons: Barry McCarthy, McCarthy, Leslie Berland Organizations: Refinitiv, Consumers, Netflix, Spotify, Business, Volvo, Dropbox, University of Michigan, Big Locations: Dusseldorf, Germany

☆ Peloton aims to rebrand as a fitness company for all with focus on app, tiered subscription pricing
▼ + stars: | 2023-05-23 | by ( Gabrielle Fonrouge | In Gabrielle-Fonrouge | ) www.cnbc.com time to read: +7 min

The ad solidified Peloton's nascent identity as a high-end bike company reserved for a certain type of person at a certain income level. "This company historically has been thought of as an in-home bike company for fitness enthusiasts but over the years, it has evolved into something that is much more bigger, much broader than that." The relaunch includes a "Gym" function that allows users to take Peloton's app into the gym with them and create custom workouts. 2 among those who have Peloton hardware. It shows how eager users are to consume Peloton content that has nothing to do with its equipment.

☆ Peloton shares plunge after company reports wider-than-expected loss
▼ + stars: | 2023-05-04 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +7 min

Peloton 's shares plummeted Thursday after the company reported a wider-than-expected loss in the fiscal third quarter and acknowledged an uncertain economic backdrop. The fitness company has sought to stabilize its business and find a path to profitability again, after seeing a sharp reversal of fortunes. The company ended its third quarter with about 3.1 million connected fitness subscriptions, up 5% from the year-ago period. Average net monthly connected fitness churn ticked up slightly from a year ago, too. In the fiscal fourth quarter, Peloton expects connected fitness subscriptions to rise, but revenue to drop.

CNBC's annual Stock Draft kicked off Thursday on "Power Lunch," with candidates opting for a wide range of stocks from AI to consumer plays. Nvidia WWE wrestler Charlotte Flair bet on artificial intelligence with her first pick: Nvidia. Amazon Olympic swimmer Erica Sullivan picked Amazon, saying she likes the e-commerce giant's service and uses it regularly. General Electric Sullivan chose General Electric for her second pick. General Electric shares are higher by more than 49% in 2023.

☆ Peloton shares are on the up — but will it last? Here's what Wall Street thinks
▼ + stars: | 2023-03-31 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

Shares of Peloton Interactive are making a comeback, with the stock up by 30% this year. But many investors who bought into the connected fitness company during the pandemic are still nursing big losses; shares are down 93% from their all-time high in late 2020, currently trading around $10.40. The consensus price target of 30 analysts ($17) points toward a 63% upside over the next 12 months. They also noted that digital-only subscriptions, which are separate from the connected fitness subscribers, fell marginally in the latest quarter. UBS' price target of $8 represents a more than 20% drop from the current share price.

☆ Peloton hires former Twitter executive Dalana Brand to be chief people officer
▼ + stars: | 2023-03-01 | by ( Gabrielle Fonrouge | ) www.cnbc.com time to read: +2 min

Peloton said Wednesday it hired former Twitter executive Dalana Brand to be its new chief people officer, as the fitness company continues its transformation and attempts to return to profitability. Dalana's addition is the culmination of that strategy, rounding out and completing the leadership team," McCarthy said. She follows behind Leslie Berland, the former chief marketing officer of Twitter, who took the same job at Peloton in mid-January. "I'm thrilled to join the team at Peloton as the company continues striving to make fitness accessible for all." While at Twitter, she led the company's global workforce and helped speed up its processes to make the workplace more inclusive.

☆ Inside Peloton's rapid rise and bitter fall — and its attempt at a comeback
▼ + stars: | 2023-02-19 | by ( Gabrielle Fonrouge | ) www.cnbc.com time to read: +9 min

"It felt like nothing could get in the way of all that," said a former engineer who attended the party. For this report, CNBC spoke with 16 current and former Peloton employees, the majority of whom declined to be identified because they are not permitted to speak publicly about the company. Foley, meanwhile, spoke briefly with CNBC by phone, saying that while Peloton's stock has fallen, the company has not. Peloton's stock price was slowly sliding down, and employees began to panic as they saw their paper wealth evaporate. By June 30, the end of Peloton's fiscal year, the company's full-year net loss ballooned to $2.83 billion.

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