By Nate Wolf

Peloton Interactive stock was falling in premarket trading Thursday even after the connected-fitness company met consensus revenue estimates for its third fiscal quarter.

Peloton reported revenue of $624 million for the March quarter, in line with Wall Street's call for $623.6 million, but down 13% from a year earlier. The company also posted a net loss of $48 million, an improvement on the $92 million loss reported for the December quarter.

Shares fell 4.2% to $6.69 before markets opened Thursday.

"In Q3, we delivered at the high end of or exceeded guidance on our key financial metrics while also continuing to execute on our FY25 operating goals," management noted in a message to shareholders.

Peloton narrowed its expectations for total revenue for the fiscal year ending in June to a range of $2.455 million to $2.47 billion, from a previous range of $2.43 to $2.48 billion.

Once a pandemic darling, Peloton's stock has plummeted from its all-time high closing price of $167.42 on Jan. 13, 2021. But investors have found reasons for optimism in the past year.

Shares of the company have decline 20% in 2025 as of Wednesday's close, but have gained 57% over the last 12 months on the back of strong revenue numbers and shrinking loss margins.

Prior to Thursday's earnings report, analysts at Telsey Advisory Group maintained their Market Perform rating for Peloton, and lowered their price target to $9 from $11, citing concerns about hardware sales.

Write to Nate Wolf at nate.wolf@barrons.com

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May 08, 2025 07:37 ET (11:37 GMT)

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