Shares of Peloton swelled by more than 36% on Thursday, pacing the exercise machine company’s largest single-day percentage gain since going public in 2019, after the company reported year-over-year revenue growth for the first time in two years—though Peloton’s market cap is still well below an all-time high reached during the pandemic.
The company reported its first year-over-year revenue and quarterly sales growth in years.
Peloton’s shares increased to over $4.50 as of around 2:25 p.m. EDT, on track to surpass the company’s largest single-day gain of 26.5% on Jan. 31, 2023, after Peloton said it expected to report an increase in cash flow.
The company’s market capitalization increased from $1.2 billion to just under $1.7 billion, about 97% lower than Peloton’s valuation of $62.9 billion after its shares peaked at an all-time high of $171 on Jan. 13, 2021.
In a letter to shareholders, Peloton reported fourth-quarter revenue of $644 million, up 0.2% year-over-year and ahead of analyst projections of $628 million, according to FactSet.
Peloton last reported year-over-year sales growth in 2022, when the company reported second-quarter revenue of about $1.1 billion.
The company also reported quarterly losses of $30.5 million, or 8 cents per share, better than analyst projections of 17 cents after Peloton reported $241.1 million during the same period last year.
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Barry McCarthy stepped down as Peloton’s CEO in May, as the company said it would lay off about 15% of its staff as part of new cost-cutting initiatives. In an announcement following his resignation, Peloton said it hoped to reduce annual spending by more than $200 million by the end of the 2025 fiscal year. After spiking during the first nine months of the pandemic, Peloton’s stock plummeted by over 91% during McCarthy’s tenure, with sales sharply declining as eased Covid restrictions lowered demand for the company’s at-home exercise bikes. McCarthy, the former chief financial officer of Spotify, replaced founder John Foley after the company reported $439 million in losses in 2022. Peloton said at the time it considered temporarily halting production after overestimating demand for its bikes and treadmills.
Peloton’s interim co-CEO Karen Boone told shareholders a search for a new chief executive is “well underway,” adding the company is “far along in the process.”