Peloton posted a worse-than-expected holiday quarter on Thursday after shoppers failed to shell out for its new AI-driven product line and turned away from higher subscription prices.

The connected fitness company missed Wall Street’s estimates on the top and bottom lines and fell short of its own internal sales targets in the three months ended Dec. 31 – typically the strongest for Peloton’s hardware revenue. 

The company said it expects sluggish sales to continue in the current quarter. Peloton forecasts revenue between $605 million and $625 million, below expectations of $638 million, according to LSEG. 

The weak results, coupled with soft guidance, are the first clues investors have that Peloton’s product overhaul may not be the sales driver the company hoped it would be. Peloton’s stock dropped as much as 13% in premarket trading following the results.

The revamped assortment, which came with artificial intelligence-powered tracking cameras, speakers, 360-degree swivel screens and hands-free control, was designed to grow sales and bring in new customers. But Peloton’s results show demand has been sluggish. 

While Peloton’s top line might be disappointing to investors, the company is still making gains in improving its profitability. Over the holiday quarter, the company generated $81 million in adjusted earnings before interest, taxes, depreciation and amortization, better than the $73 million analysts had expected, according to StreetAccount. 

After it announced plans to lay off 11% of its staff last week, the company expects to generate between $120 million and $135 million in adjusted EBITDA in the current quarter, better than the $119 million analysts had expected, according to StreetAccount.

It raised its full-year adjusted EBITDA guidance to between $450 million and $500 million, up from a prior range of between $425 million and $475 million. 

That’s welcome news to investors because it shows Peloton was able to innovate its product line without draining profitability. 

Also on Thursday, the company announced CFO Liz Coddington is leaving Peloton to “pursue an opportunity outside the industry.” She’s staying on through March as the company searches for its next finance chief.

Here’s how Peloton did in its fiscal second quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

• Loss per share: 9 cents vs. 6 cents expected
• Revenue: $657 million vs. $674 million expected

The company’s net loss for the quarter was $38.8 million, or 9 cents per share, a significant improvement from the $92 million, or 24 cents per share, it lost in the year ago period. 

Sales fell to $656.5 million, down about 3% from $673.9 million a year earlier.

Since Peter Stern took over as Peloton’s CEO, he’s worked to generate new revenue streams and build on the company’s progress of improving its profitability. 

The revamped product assortment was one of his first big moments as CEO and included new prices for both subscriptions and hardware. Despite higher prices, revenue for both hardware and subscription came in lower than expected, indicating unit sales have been weak.

Hardware sales drove $244 million in revenue during the quarter while subscriptions saw $413 million in sales, both below expectations of $253 million and $424 million, respectively, according to StreetAccount. 

In a statement, Stern focused on the company’s profitability improvements and said he’s seeing “positive momentum” across the business. 

“Our second quarter represented the most substantial period of innovation at Peloton since our founding. At the same time, our financial performance demonstrated our continued operational discipline, resulting in 39% year-over-year growth in Adjusted EBITDA and reducing Net Debt by 52% year-over-year, proving we can simultaneously innovate and increase our profitability,” said Stern. “Our subscription base is highly committed, our integrated Commercial Business Unit is growing and well-positioned to continue doing so, and Member engagement with Peloton IQ is encouraging.”

Telecoms giant BT has reported a significant slowdown in customer losses, signalling a potential stabilisation within the fiercely competitive broadband market.

The group revealed it shed 210,000 broadband customers during the final three months of 2025.

This figure proved less severe than market expectations, which had predicted losses exceeding 230,000.

Consequently, BT has adjusted its full-year projection for Openreach fixed-line broadband customer losses downwards, now forecasting 850,000, an improvement from its earlier estimate of 900,000.

Simultaneously, the company experienced a notable surge in demand for full-fibre coverage, successfully adding 571,000 new customers in the quarter.

Openreach has contended with customer attrition in recent years, largely due to the rise of low-priced competitors, often termed “retail altnets,” including providers like CityFibre.

However, chief executive Allison Kirkby informed the Press Association that this competitive pressure is now “abating” as BT continues to expand its full-fibre infrastructure across the country.

She said: “We’re building further and faster across the country than anybody else, because we’re getting into the areas where we didn’t previously have fibre.

“Now we have two-thirds of the country on fibre and we’re seeing reduced competition, so the consumer demand is there.”

The telecoms giant reported that revenues fell by 4 per cent to £5 billion in the quarter to December 31 due to service revenue declines.

It was also impacted by lower equipment revenues, largely linked to weakness in handsets, and divestments.

Adjusted UK service revenues fell by 2 per cent to £3.8 billion for the quarter.

Meanwhile, pre-tax profits fell to £183 million for the quarter, compared with £427 million a year earlier, after being hit by £214 million of losses related to its sports joint venture behind TNT Sports.

It runs the joint venture alongside US media giant Warner Bros Discovery, which has been at the centre of a bidding war between rivals Netflix and Paramount Skydance.

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BT stressed it was still on track to meet its financial guidance for the current year.

Ms Kirkby said: “BT continues to deliver on its strategy – building and connecting the UK to the best next-generation networks at record pace, while accelerating our transformation.

“Our network leadership strengthened further in the quarter, with full-fibre broadband now reaching more than 21 million homes and businesses, and our 5G+ network accessible to 69 per cent of the population.

“Openreach achieved record full-fibre connections and our consumer division again added customers in broadband, mobile and TV.”

Hyundai i20 Price Cut Details: Hyundai Motor India has made the i20 more affordable by cutting prices for several variants. Now the premium hatchback is more accessible to buyers with a starting price of Rs 5.99 lakh (ex-showroom). Earlier, the entry price was Rs 6.86 lakh. That is a big drop for a car in this segment.

Official Statement

Commenting on the announcement, Sunil Moolchandani, National Sales Head, HMIL, said, “With the new starting price of Rs 5,99,000, we are making the i20 experience even more compelling, accessible and desirable for customers. This reflects our commitment to offering value-driven mobility solutions.”

New base variant

The i20 lineup now starts from the Era variant, priced at Rs 5,99,000 (ex-showroom). The variant comes equipped with 6 airbags, digital instrument cluster, front and rear skid plates, body-colour ORVMs and door handles, Type-C USB charger and telescopic steering.

Hyundai has also reduced prices for the mid-level trims. The i20 Magna Executive now costs Rs 6,73,900, compared to Rs 6,86,865 earlier. The i20 Magna is priced at Rs 6,99,900, down from Rs 7,12,385. All prices are ex-showroom.

Hyundai i20 Magna Executive features 

The Magna Executive variant comes equipped with a digital cluster, front and rear skid plates, shark fin antenna, Highline Tyre Pressure Monitoring System (TPMS), automatic headlamps, telescopic steering, keyless entry, electrically adjustable ORVM and steering wheel with audio & Bluetooth controls.

Hyundai  i20 Magna features 

Building on this, the Hyundai i20 Magna variant further enhances the premium quotient with features such as an electric sunroof, LED DRLs, rear AC vents and front armrest with storage.

Hyundai is also offering a 10.1-inch touchscreen infotainment system as a dealer-installed option. It supports wireless Apple CarPlay and Android Auto and comes with a rear camera. This package costs Rs 14,999 and includes a 3-year warranty on the screen.