Peloton CFO Liz Coddington has downplayed the impact of tariffs during the company’s Q3 2025 earnings call, stating that its subscription business provides resilience in tough economic times, adding that consumers tend to retain their fitness spending during periods of recession.
Coddington stated that Peloton’s main revenue stream comes from its subscribers, and noted that the company offers financing options and cheaper refurbished models to make its hardware more accessible.
CEO Peter Stern also highlighted the company’s increased use of AI to enhance customer experiences, such as using Google Gemini to enable staff to focus on “big creative thinking” and providing personalised training plans.
However, the company reported a 27% decline in hardware sales and a 4% drop in subscription revenue over the year, yet still raised its outlook to $247.7m.