What Peloton's Low Churn Rate Really Means
No matter how bad things get for Peloton Interactive (NASDAQ: PTON) bulls, they always have a metric they can trot out to boost their case.
Peloton's churn rate, or the number of connected fitness subscribers who quit each month, has always been low. Even as Peloton shares have collapsed over the last year, churn has remained remarkably strong. Less than 1% of Peloton's connected fitness subscribers leave the service each month, which seems to both vouch for the product itself and show how loyal the customer base is. If the company is able to retain over 90% of its subscribers each year, it must be doing something right, bulls argue.
Image source: Peloton.
Source Fool.com