Peloton Net Worth: Pandemic Boom, Stock Crash & Ongoing Financial Woes

Renowned for integrating technology, fitness, and media to create a cult following, Peloton has faced significant challenges in recent years.

As of November 2024, Peloton’s net worth or market cap was $3.67 billion — less than half of its IPO valuation — reflecting the company’s ongoing struggle to return to profitability.

At Business2Community, we’ve used our expertise to provide a detailed account of Peloton’s net worth, along with the highs and lows of its journey to becoming a fitness company. Keep reading to explore Peloton’s growth, controversies, and more.

What is Peloton’s Net Worth?

As of November 2024, Peloton had a net worth, also known as market capitalization, of $3.67 billion. This was based on a share price of $9.37 and 381.46 million shares outstanding.

Peloton’s fiscal year ends on June 30, and the company typically releases its annual financial results in August of the same year. In addition, Peloton’s financial results are also released quarterly, in November (Q1), February(Q2), May(Q3), and August (Q4).

In 2018, Peloton had an estimated estimated valuation of $4.2 billion. The company went public at an opening share price of $27 on September 26, 2019, placing its net worth at around $7.96 billion. The following year, Peloton’s stock rose by over 500%, catapulting the company’s net worth to $45 billion.

Between December 2020 and December 2022, the company’s share price plummeted from an all-time high of $167 to $7.94. Peloton’s stock price bloodbath wiped 94% or $42.3 billion off Peloton’s net worth, marking one of the most dramatic falls from grace in recent corporate history.

Throughout 2023, Peloton shares struggled to recover, falling to a new low of $4.46 in September. By December of the same year, the company’s market cap was 18.5% lower at $2.2 billion.

In 2024, Peloton’s average stock price was $4.52, with shares hitting a high of $8.96 in November. While nowhere near pandemic highs, Peloton’s net worth has made encouraging year-over-gains of around 57%.

Peloton Revenue

Peloton first became profitable at the end of 2015. With a compound annual growth rate of over 250% per year, the company’s revenue hit $170.8 million in 2017, $365 million in 2018, and over $700 million in 2019.

By the end of 2019, the company’s revenue had crossed the $1 billion mark. However, as the company grew, its operating expenses increased, resulting in a net loss of $200 million in 2017.

Peloton doubled its revenue to $1.8 billion in 2020. In 2021, the company’s revenue skyrocketed to $4 billion reflecting a major surge in demand caused by pandemic lockdowns.

While the company generated $3.6 billion in revenue in 2022, it recorded a staggering loss of $2.8 billion due to slowing sales and mounting expenses.

Despite Peloton’s aggressive turnaround plan, the downward trend in performance persisted. Revenue fell by 22.2% to 2.8 billion in 2023, with a net loss of $1.3 billion. While losses narrowed to $552 million in 2024, the company’s revenue dropped to $2.7 billion.

Peloton has a dividend yield of 0% and has not declared or paid any dividends since going public in 2019. Further, as stated in the company’s latest SEC filings, Peloton does not expect to declare or pay dividends in the foreseeable future. Until it reaches stable profitability, it’s unlikely that it will explore dividends further.

Who Owns Peloton?

Peloton Interactive Inc. is owned by various shareholders. As of September 30, 2024, the largest shareholder was Morgan Stanley with an ownership stake of 11.23%. This is followed by Vanguard Group Inc. (9.20%) and BlackRock Inc. (6.98%).

Peloton was founded in 2012, by former Barnes & Noble executive John Foley and his four co-founders, Graham Stanton, Hisao Kushi, Tom Cortese, and Yony Feng to bring fitness classes to busy high-earners.

In February 2012, Peloton raised $400,000 ($350,000 from angel investors and $50,000 from Foley’s savings) through a seed round. The company went on to raise $3.5 million through a Series A funding round in December of the same year.

In July 2013, Peloton launched a successful Kickstarter campaign that raised $307,332. The following year, Peloton secured $10.5 million through a Series B funding round.

In 2015, Peloton secured additional capital through two funding rounds: $30 million (Series C) and $75 million (Series D).

The company raised $325 million in a Series E round in 2017, while 2018 saw the company raise an additional $550 million through Series F funding. In 2019, Peloton’s fundraising efforts culminated in a successful IPO which generated $1.2 billion.

Who is the Peloton CEO?

Karen Boone and Chris Bruzzo are Peloton’s interim co-CEOs. The duo took over after ex-Peloton chief executive Barry McCarthy stepped down in May 2024.

In October 2024, Peloton announced that Peter Stern, President of Ford Integrated Services would be Peloton’s new CEO and President effective January 1, 2025.

McCarthy, who previously served as CFO at companies like Netflix and Spotify, joined Peloton in February 2022 after former billionaire CEO John Foley resigned. During his tenure, McCarthy streamlined Peloton’s operations, cut costs, and shifted the company’s focus toward a subscription-based model.

John Foley, who cofounded Peloton, served as the company’s longest-running CEO, leading the company for nearly a decade. Following Peloton’s stock crash, Foley stepped down.  This came after activist investor Blackwells Capital called for the co-founder’s removal over “poor decision-making” and “gross mismanagement”.

The former CEO, who became a billionaire seemingly overnight, saw his net worth drop to $225 million and was forced to let go of assets like his $55 million East Hampton waterfront home.

In a candid interview, Foley revealed the personal toll of the company’s downturn to the New York Post: “Unfortunately, I’ve lost all my money. I’ve had to sell almost everything in my life. My family took it well,” Despite these setbacks, Foley noted his family’s resilience, adding, “My wife’s super supportive and my kids are probably better for it if we’re keeping it real.”

Peloton’s stock bloodbath killed more than Foley’s billionaire status. Around 2,800 jobs were cut and employees also saw their paper wealth evaporate.

“People lost everything,” a former Peloton engineer told CNBC.

People lost their dreams.

Gymshark founder and CEO Ben Francis (named Britain’s youngest billionaire) weighed in on the situation with cautionary words, “None of it is real,” the millennial entrepreneur added that his wealth was “all on paper” and tied to assets that could fluctuate in value.

It could double, it could halve. That’s why I think it’s important that no individual should ever pin their self-worth on things like wealth, net worth, or anything financial.

Peloton’s Company History

Headquartered in New York City, Peloton is a global fitness company boasting a community of over 6.4 million members across several countries including:

• United States
• United Kingdom
• Canada
• Germany
• Australia
• Austria

The company’s first-of-its-kind subscription platform seamlessly combines fitness products like Peloton Bike, Tread, and Row with distinctive software and exclusive content.

Below, we track Peloton’s journey to becoming a leading fitness equipment company.

2012-2021: Peloton’s IPO and Pandemic Highs

Peloton was founded in 2012 by John Foley, Graham Stanton, Hisao Kushi, Tom Cortese, and Yony Feng. In 2013, the first prototype of the Peloton bike was built and used to launch a Kickstarter campaign. Priced at $1,500, the bike piqued consumer interest and raised $307,332 in pledges. By the end of the year, Peloton Interactive had made its first sale.

In 2014, Peloton began fulfilling orders and by 2015, became profitable. That year, Peloton opened its first New York City studio. 2016 saw the budding fitness company generate $60 million in revenue and more than double it to $170 million in 2017.

With over $365 million in revenue and $550 million in funding in 2018, Peloton introduced the Peloton Digital app and launched Peloton Tread and Yoga. The company also expanded its operations, taking its concept into the UK and Canada.

By 2019, Peloton had not only hit unicorn status with a $4.2 billion valuation but had also sold over 400,000 bikes and launched three fitness offerings across three international markets.

With over 58 brick-and-mortar retail showrooms across the US, ecommerce facilities, and an in-house logistics company, Peloton went public in September 2019, ushering in a new era of growth.

2022-Present: Peloton’s Stock Crash and Recovery

In 2020, demand for Peloton bikes surged as a result of pandemic-triggered lockdowns and gym closures. By November 2020, Peloton sales hit $757.9 million, a whopping 232% increase over the previous year. The company also experienced a 142% increase in total community members.

In early 2021, the company reported that it had surpassed its first $1 billion sales quarter and posted $64 million in profit. While demand remained strong, global supply chain issues meant customers had to endure months-long delivery delays. As a result, Peloton made the costly decision to spend $100 million on airlifting orders to consumers.

That year, Peloton also acquired fitness company Precor for $420 million to strengthen its US manufacturing capabilities. The company also invested $400 million into building Peloton Output Park in Ohio, a factory aimed to boost its US operations and reduce its reliance on overseas partners.

However, as lockdown restrictions eased and demand for Peloton’s products started to fall, the company’s share price hit a new low of $27.30 in February 2022.

By June 30, 2022, Peloton’s fiscal year, the company’s full-year net loss was $2.83 billion. Although free cash flow levels had improved, the company was still losing millions each quarter.

Peloton implemented various strategies such as reducing bike prices, outsourcing manufacturing, and increasing subscription fees to boost revenues and decrease expenses.

As part of its growth and restoration plan, Peloton leaned into the future of tech-enabled fitness and transitioned into a software-first company in 2023. While the company successfully grew its subscription revenue by 4%, overall performance was impacted by significant challenges.

This included a major recall affecting over 2 million exercise bikes and the distribution of more than 750,000 replacement seat posts. In spite of these obstacles, Peloton reached a crucial turning point in optimizing its cost structure, narrowed its losses, and generated $ 2.8 billion in revenue.

After more restructuring, and trimming its marketing spending, Peloton returned to sales growth for the first time in 2024. The company also strengthened its financial position through a comprehensive debt restructuring initiative.

By October 2024, the first quarter of Peloton’s fiscal year 2025, the company moved closer to profitability, slashing its expenses by 30%, and generating almost $11 million in free cash flow.

Peloton Controversies

As a fitness technology company, Peloton has faced a number of controversies. We run through the most notable and damaging ones below.

Peloton Tread Scandal

In 2023, Peloton paid a $19 million fine to the US Consumer Product Safety Commission (CPSC) for failing to report that its Tread+ treadmill had dangerous defects as well as continuing to distribute recalled treadmills in violation of the Consumer Product Safety Act (CPSA).

Between 2018 and 2020, Peloton received reports of injuries and incidents associated with pull-unders and entrapment in the rear of the treadmills. Despite knowing this, Peloton didn’t make a report to the Commission.

By the time Peloton filed a report with the Commission, the company had already been implicated in the tragic death of a six-year-old, 13 incidents of serious injuries, and over 150 reports of people, pets, or objects being pulled under the Tread+. While Peloton and the Commission jointly announced the recall of the Tread+ treadmill in 2021, an investigation revealed Peloton had knowingly sold 38 of these defective treadmills.

Mr. Big Scandal

In late 2021, Peloton approved the use of its bike and the appearance of one of its fitness instructors on HBO Max’s Sex and the City revival, And Just Like That….

Then, the “Mr. Big” incident happened, sending the company’s shares to a 19-month low. Mr Big, a key character in the popular show was shown dying of a heart attack after a 45-minute workout on a Peloton bike. While Peloton had signed off on the unofficial product placement, the company didn’t know its brand would be portrayed in such a negative light.

In an attempt at damage control, Peloton released a parody ad featuring Chris Noth, the actor who played Mr. Big, along with the Peloton instructor who appeared in the episode.

Unfortunately, the PR stunt backfired when Noth was accused of sexual misconduct by two women. Unlike the show’s subtle product placement, the ad linked Peloton directly to Noth and the allegations. The video was swiftly removed, but not before doing some serious damage to the company’s reputation.

Holiday Ad Controversy

In 2019, Peloton’s market value fell by almost 9% or $1.5 billion following widespread outrage over its holiday ad titled The Gift That Gives Back. The ad, which attracted millions of views on YouTube, featured a young woman filming herself working out for a year after being gifted a Peloton bike by her partner for Christmas. Netizens described the ad as sexist and dystopian, while critics labeled it “offensive” and “tone deaf” for promoting outdated gender stereotypes.

Peloton Layoffs

At the peak of its 2021 pandemic-induced “hiring spree”, Peloton had over 8,600 employees. However, as sales declined, the company resorted to massive layoffs to save over $800 million annually and restore its financial health. Then CEO Barry McCarthy implemented five rounds of layoffs between 2022 and 2024, reducing the headcount by a whopping 5000.

In the most recent round of layoffs in May 2024, over 400 or 15% of Peloton employees were let go as part of a broad restructuring plan to reduce expenses by $200 million.

What Can We Learn From Peloton?

Peloton’s initial success demonstrates the power of revolutionizing an existing industry through innovation and community building. Peloton pioneered a premium home fitness experience by creating a fully integrated system consisting of exercise equipment, instructors, and an engaged online community.

Peloton’s aggressive expansion during the pandemic, and the challenges that ensued as the company overestimated demand, highlight the dangers of mistaking a temporary surge for sustainable growth.

Meanwhile, Peloton’s ongoing recovery reflects the importance of adaptability and strong leadership in navigating successful turnaround strategies. Not only has the company undergone comprehensive restructuring, but it has also pivoted from a hardware-based company to a more cost-effective subscription-based model.

Lastly, the company’s recent challenges with safety issues and negative publicity emphasize the importance of maintaining brand trust and product quality.

To stay on its path toward profitability and sustainable growth, Peloton must focus on adapting to shifting consumer demands, upholding high safety standards, and safeguarding its reputation.

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