Peloton Appoints New CEO

Investing.com — Peloton (NASDAQ: PTON) has named Peter Stern as its new CEO, concluding a lengthy search for a successor to former executive Barry McCarthy. This change comes as the connected fitness bike company seeks to revive its declining subscription growth.

Stern previously held the position of President of Ford (NYSE: F) Integrated Services and has past leadership roles at Apple (NASDAQ: AAPL) and Time Warner Cable. He will officially take over on January 1.

> "Peter is a seasoned strategist with a track record of driving sustainable growth through innovation, and we have every confidence in his ability to lead Peloton during this important time," said Peloton Chairperson Jay Hoag. He emphasized that Stern possesses significant expertise in scaling technology-oriented platforms and a thorough understanding of the health and wellness sector.

Peloton conducted a comprehensive search for its next leader after McCarthy's departure in May, which occurred amid disappointing results despite efforts to rebrand the company to attract a broader customer base.

Analysts are now seeking clearer insights into Peloton's plans to rejuvenate its operations, increase subscriber numbers, and manage expenses. Additionally, the firm is exploring options to refinance its debt to secure time for necessary changes.

In a recent announcement, Peloton revealed a 2.2% decline in first-quarter subscribers, totaling 2.9 million, falling short of analyst expectations of 2.92 million. However, paid digital subscribers decreased by 24% year-over-year to 582,000, surpassing predictions.

Despite these challenges, the company reported an overall revenue drop of 1.6% to $586 million, exceeding estimates. Peloton also achieved approximately $15 million in savings in its fiscal 2025, leading to an impressive adjusted core income of $115.8 million, far above Wall Street forecasts.

Looking ahead, Peloton raised its 2025 adjusted core earnings outlook to between $240 million and $290 million, previously estimated at $200 million to $250 million. As the holiday season approaches, the company plans to increase media spending while ensuring that newly acquired subscribers are profitable.

Shares of Peloton surged by more than 8% in premarket US trading.