New York, May 26, 2026, 19:01 EDT
Peloton Interactive shares rose on Tuesday after the connected-fitness company named Siddharth “Sid” Thacker as chief financial officer, handing a former Rent the Runway finance chief a central role in its push for steadier profit and cash flow.
The stock closed at $5.77, up 1.05%, with trading volume of about 85.6 million shares, well above normal levels, after U.S. markets reopened from Monday’s Memorial Day holiday. The Nasdaq Composite gained 1.19%, while the S&P 500 rose 0.62%.
The timing matters. Peloton is due to enter the S&P SmallCap 600 before trading opens on Wednesday, an index change that can draw attention from funds that track the benchmark. S&P Dow Jones Indices said Peloton would be added to the small-cap index, replacing Enviri, with the change effective May 27.
Peloton said Thacker will start on June 22 and oversee its global finance team and corporate strategy. Interim CFO Saqib Baig will step down from that role and remain chief accounting officer, the company said.
A filing showed Thacker’s offer includes a $635,000 base salary, a target annual cash bonus equal to 60% of base pay, and initial equity awards valued at $8 million, subject to board approval.
Chief Executive Peter Stern said Peloton was at a “pivotal time” and was “playing offense,” adding that Thacker brought financial discipline and experience with multiple revenue streams. Thacker said he planned to “sharpen execution” and build on Peloton’s current momentum. Business Wire
Thacker joins after three years as CFO of Rent the Runway, where Peloton said he led a financial and operational reset, including balance-sheet work, marketing-spend changes and new revenue streams such as resale and advertising. That background fits the problem Peloton is trying to solve: keeping the brand alive beyond its pandemic hardware boom while proving that subscriptions, commercial equipment and partnerships can carry more of the load.
Peloton’s most recent quarter gave investors some reason to wait and see. The company reported fiscal third-quarter revenue of $631 million, up 1% from a year earlier, and net income of $26 million. Adjusted EBITDA — earnings before interest, taxes, depreciation and amortization, excluding some items — rose 41% to $126 million.
Free cash flow, cash left after running the business and funding investment needs, climbed 59% to $151 million in the quarter. Peloton also raised its full-year free cash flow expectation to about $350 million and forecast adjusted EBITDA of $470 million to $480 million.
The but is still large. Paid connected-fitness subscriptions fell 7.6% year over year to 2.662 million in the quarter, and Peloton expects that base to be down 8.6% for the full fiscal year. The company has also warned that it may fail to attract and retain subscribers, may not sustain profitability, and remains exposed to demand forecasting, inventory and tariff risks.
Tuesday’s move also came in a stronger tape for some consumer and tech-linked names, though Peloton’s catalyst was company-specific. A MarketWatch data item said Peloton outperformed Apple, Nike and Lululemon on the day, peers investors often use loosely to frame the fitness, wellness and consumer-discretionary trade.
The next test comes quickly. Index-related buying can lift volume for a day or two, but Thacker’s job will be judged over quarters: whether Peloton can turn better cash flow into lasting revenue growth without losing more of the subscribers that still anchor the business.
