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.