Troubled home exercise equipment maker Peloton Interactive seems to finally be on its way to recovery. The company shared better-than-expected earnings for the fiscal fourth quarter and saw its stock soar 44% in the aftermath.
Peloton recorded $643.6 million in revenue for the quarter, surpassing the $631 million estimated by analysts. More importantly, it was a 0.2% increase compared to the same period last year, which marked the company’s first year-over-year revenue growth since 2021.
While this is a modest increase, it still caught the attention of analysts because it came at a time when Peloton usually had lower sales. During summer, fitness enthusiasts usually turn to exercise outdoors and use the company’s services less.
Peloton also saw a lot of success in trimming down its losses. It reported quarterly losses of $30.5 million, a sharp decline compared to $241.1 million in the same quarter in 2023. The company’s loss per share came at $0.08 cents, while analysts expected $0.17 cents in loss per share.
The investors took notice of Peloton’s recovery, sending its stock 44% up from Wednesday’s closing price of $3.36 per share. The company’s shares went on to close at $4.84 apiece on Friday but still remain 16.84% down year-to-date.