Peloton Borrows $750M As Downward Cycle Spins
May 10, 2022
Peloton reported third-quarter revenue of $964.3 million, a 24% year-over-year drop from the $1.26 billion it posted the year prior, and a net loss of $757.1 million, a significant difference from last year’s third-quarter net loss of $8.6 million.
The fitness company is running out of cash. Peloton ended the quarter with $879 million in unrestricted cash and cash equivalents. Earlier this week, the company signed an agreement with JPMorgan and Goldman Sachs — the banks that led Peloton’s IPO — to borrow $750 million in five-year term debt. FOS