Peloton Interactive Cycles Lower Once Again
Another quarter, another big drop in sales for Peloton Interactive (NASDAQ: PTON). While losses narrowed, the outlook for the coming holiday quarter indicates sales will be much lower than anticipated.
Peloton is making progress toward its goal of attaining break-even status on free cash flow by the end of its 2023 fiscal year (which ends in June). Its operations burned through $246 million in the first quarter, compared to $421 million in the fourth and $747 million in the third. Although CEO Barry McCarthy believes the connected fitness equipment maker will actually achieve the goal early, he is hedging his bets a bit that "it is not a guaranteed outcome."
In short, things could get uglier -- and Peloton is going to have to get a lot smaller still -- before they get better.
Source Fool.com
