Hello and welcome to Fitness Focus. I’m your host, and today we’re diving into Peloton’s Q3 2025 earnings. Peloton says it’s “predominantly a subscription business,” and CFO Liz Coddington isn’t too worried about tariffs. “During the period of GDP decline between 2008 and 2009, external data showed that US spending on fitness continued to grow,” she noted, adding that “fitness isn’t among the first places that consumers are likely to scale back when times are tough.” Even so, Peloton expects about $5 million in tariff-related headwinds next quarter and is leaning on zero-percent financing, a bike rental program, and refurbished models to stay competitive. Hardware sales fell 27 percent and subscription revenue dipped 4 percent, but the company still raised its outlook slightly. CEO Peter Stern also highlighted AI innovations: “I think AI has the potential to give humans superpowers,” he said, pointing to AI-powered call notes, class translations, and half a million personalized workout plans. According to Stern, “the future is bright for Peloton members with AI.”
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