Peloton Appoints Charles Kirol as Chief Operating Officer; Andrew Rendich Transitions to Advisory Role

Peloton Interactive, Inc. announced that Charles Kirol has been appointed as Chief Operating Officer, effective April 14, 2025. Kirol brings more than 25 years of experience in global operations, most recently serving as Chief Global Operations and Technology Officer at iRobot. He has also held senior roles at Sensata Technologies, Stanley Black & Decker, and GE Capital, and currently serves as a Rear Admiral in the U.S. Navy Reserves.

Under his employment agreement, Kirol will receive a $635,000 annual base salary, a 60% annual bonus target, a $70,000 signing bonus, and equity awards valued at $5 million. He will also participate in Peloton's Severance and Change in Control Plan as a Tier 1 participant.

Additionally, Peloton announced that Chief Supply Chain Officer Andrew Rendich will transition to an advisory role effective April 11, 2025. He will support the company through June 30, 2025, as part of a transition agreement. Rendich’s departure is not due to any disagreement with the company.

Peloton exceeded its guidance for Q2 across key financial and operational metrics, including Paid Connected Fitness Subscriptions, Total Revenue, Total Gross Margin, and Adjusted EBITDA. Key highlights from the quarter include:

- **Operating Expenses**: Down 25% year-over-year (Y/Y).
- **Cash Flow**: Generated over $100 million in both GAAP Net Cash Provided by Operating Activities and non-GAAP Free Cash Flow.
- **Member Satisfaction**: Significant improvement in Member happiness, with Net Promoter Scores (NPS) rising across all core products, particularly Bike and Tread products, all exceeding an NPS of 70. Member Support Satisfaction (MSAT) also increased from 3.1 in Q2 FY24 to 4.3 on a scale of 1 to 5.

**Operational Improvements:**
- **New Subscription Attach Rates**: Improved year-over-year (Y/Y) from Tread sales.
- **Engagement Shift**: There was an increased focus on Strength workouts, with more engagement in this area.
- **Demographic Trends**: Higher adoption by men, who accounted for 42% of Paid Connected Fitness Subscription gross additions in Q2, marking a 280-basis point (bps) increase quarter-over-quarter (Q/Q) and 240 bps Y/Y.

**Balance Sheet & Debt:**
- **Debt Reduction**: Total Debt decreased by $190.1 million Y/Y, and Net Debt decreased by $281.4 million (a 30% reduction Y/Y).

**Updated Guidance:**
- **Adjusted EBITDA**: The company raised its full-year FY25 guidance for Adjusted EBITDA by $60 million, now expecting a range of $300 - $350 million, up from $240 - $290 million.
- **Free Cash Flow**: The Free Cash Flow target was increased to at least $200 million, up from $125 million.

Peloton's strong performance underscores its effective execution of key initiatives and a solid trajectory toward improved financial health and member satisfaction.

Peloton Interactive, Inc. announced that on January 16, 2025, its Board of Directors appointed Peter Stern, the company's Chief Executive Officer and President, as a Class II director. Mr. Stern will serve on the Board until the 2027 annual meeting of stockholders or until a successor is duly elected or qualified. He has been Peloton's CEO since January 1, 2025.

There are no arrangements, understandings, or material interests in transactions requiring disclosure under Item 404(a) of Regulation S-K related to Mr. Stern’s appointment. He will not receive additional compensation for his Board service.