Peloton announced a new partnership with the Formula 1 Heineken Las Vegas Grand Prix, a high‑profile motorsport event scheduled for November 20‑22, 2025. The collaboration will see Peloton produce a series of exclusive classes and scenic rides filmed during the race weekend, with four track‑based classes slated for release on November 24 and a virtual ride of the 3.8‑mile Las Vegas Strip Circuit available to members the following day.
Peloton’s Q1 2025 earnings, released on November 6, showed revenue of $550.8 million, down 6% from $586 million a year earlier, but an EPS of $0.03 that beat the consensus estimate of breakeven by $0.03. The revenue decline was driven by a 4% drop in Connected Fitness product sales, offset by a 2% increase in subscription revenue. The EPS beat was largely attributable to disciplined cost management, which helped maintain a gross margin of 51.5% despite a 30‑basis‑point contraction from the prior year.
Segment analysis reveals that Connected Fitness products generated $160 million in revenue, a 9% decline from the $175 million reported in Q4 2024, while subscription revenue rose to $426 million, up 3% from $413 million. The stronger subscription mix, combined with pricing stability in the product segment, helped cushion the overall revenue decline and supported the modest margin expansion in the subscription line to 68.6% from 67.8% a year earlier.
Chief Content Officer Jen Cotter said the partnership “surprises and excites our members by bringing the high‑energy atmosphere of Formula 1 to our platform.” CEO Peter Stern added that the deal aligns with Peloton’s strategy to drive new subscriptions and reinforce its brand in a competitive market, noting that the company is targeting over $200 million in run‑rate cost savings by the end of FY 2025.
Analysts highlighted the EPS beat and the company’s upward revision of fiscal 2026 revenue guidance to $2.49 billion–$2.5 billion, up from the prior $2.45 billion estimate, as evidence of confidence in the business’s trajectory. The guidance reflects expectations of renewed demand for Peloton’s Cross Training Series and the anticipated lift from the Formula 1 partnership.
The partnership is expected to enhance Peloton’s brand visibility among motorsport fans and could translate into new subscriber acquisition, supporting the company’s broader strategy to stabilize its subscriber base and achieve sustainable growth amid competitive pressures.
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