NEW YORK, March 29, 2026, 4:07 PM EDT
Peloton Interactive Inc. rallied 8.85% on Friday to close at $4.43, with volume surging to about 38.1 million shares. Hedge fund manager Eric Jackson earlier revealed he’s taken a long position in the fitness stock, betting there’s further room to climb.
Peloton’s recent rally is once again raising questions about whether the company can turn its stronger cash position into a lasting comeback. In February, Peloton warned investors that third-quarter revenue was coming in below what Wall Street had expected. This week brought another shift at the top: interim CFO Saqib Baig stepped in after Liz Coddington exited the role.
Peloton’s juggling a complicated outlook right now. The company trimmed its fiscal 2026 revenue guidance to a range of $2.40 billion to $2.44 billion, but interestingly, it raised its adjusted EBITDA target to between $450 million and $500 million—its headline profitability metric—and now aims for free cash flow of at least $275 million. Back in January, the company cut 11% of its staff.
Jackson at EMJ Capital thinks investors are fixated on Peloton’s old story, not what’s actually going on with the company’s finances, he told Business Insider. He compared Peloton’s mix of hardware and subscriptions to Chewy, Roku, and Sonos—pointing out those names trade at richer cash-flow multiples.
Peloton’s results aren’t getting any steadier. Revenue for the December quarter dropped 3% to $657 million. Paid connected fitness subscribers—folks with memberships for Peloton bikes and treadmills—declined 7%, now totaling 2.661 million. Looking ahead to the third quarter, Peloton sees revenue falling somewhere between $605 million and $625 million, which Reuters notes is below what analysts had penciled in.
Stern is pushing Peloton to shed its pandemic-era reputation, and lately that push has accelerated. On March 16, the company launched a new commercial-grade bike and treadmill aimed straight at gym floors. “Peloton is going to the gym,” Stern said. In the fiscal second quarter, Peloton’s commercial segment delivered a 10% revenue increase from a year earlier. Peloton Interactive, Inc.
Peloton wasted little time after the news, appointing Sarah Robb O’Hagan—who previously ran EXOS—as its chief content and member development officer, effective April 1. The position is new, part of Peloton’s bid to stretch past connected fitness and recast itself as a broader wellness company. Back in February, Stern characterized Peloton’s “subscription base” as “highly committed,” even as the company pressed on with tough cost cuts and kept reworking its lineup. Peloton Interactive, Inc.
Any signs of persistent weak demand or a deeper subscriber drop could quickly unravel the comeback narrative. Reuters pointed out that Peloton’s total membership slid more than 6% from a year ago to 5.8 million in the December quarter, with slower sign-ups linked to cautious consumer sentiment. Even with Friday’s jump, shares remain at roughly half their 52-week high of $9.20—and have tumbled 96% off the 2021 top.
