The US fitness equipment manufacturer Peloton has presented its financial results for the first quarter of its fiscal year 2025, with both the net loss and revenue performing better than expected. The company recorded a loss of $0.9 million, significantly lower than the $159.3 million loss in the same quarter of the previous year. On a per-share basis, the loss translated to an EPS of -$0.44, while analysts had projected an EPS of -$0.154.

The revenue of Peloton was 586.0 million USD, representing a slight decline of about 2.5 percent compared to 595.5 million USD in the same quarter of the previous year. Despite the revenue decline, Peloton exceeded the analysts' expected 573.0 million USD, highlighting the continued demand for the company's products.

These positive results led to an impressive surge in Peloton's stock price. Trading on NASDAQ saw the stock price temporarily rise by 24.44 percent to 8.28 USD. This reaction from investors reflects confidence in the company's ability to continue growing despite the current economic challenges.

Chief Financial Officer Susan Li explained in a conference call that while the increasing insolvencies among existing customers in the core markets of France, Spain, and Germany are burdensome, new business is strong enough to support overall performance. "Although we are very robust due to our strong diversification, the current rising payment defaults do not pass us by without impact. The key factor is that the demand for leasing solutions remains solid," said Li.

Peloton had already presented figures for the leasing business at the beginning of October and expressed optimism after strong new business. Nevertheless, higher expenses for damage settlement and risk provisions significantly impacted the profit for the quarter. The new annual forecast now expects a decrease in profit to 68 to 76 million euros, which is well below the originally projected 95 million euros and exceeds analysts' consensus estimates of 94 million euros.

Analysts fear that the lowered profit forecasts could lead to a significant correction of consensus estimates for 2024 and subsequent years. A trader described the announcement as a severe profit warning that could affect the company's future prospects.

Despite the current challenges, Peloton remains financially solid. The company gained around 11 percent year-over-year, and revenue developed positively. Nevertheless, the future of Peloton remains uncertain in light of rising bankruptcies and worsening economic conditions.