Peloton at Bank of America Global Tech Conference: Strategic Growth Path

On Wednesday, 04 June 2025, Peloton Interactive Inc. (NASDAQ:PTON) presented its strategic vision at the Bank of America Global Technology Conference 2025. CEO Peter Stern outlined the company’s focus on sustainable growth, emphasizing efficiency in marketing, member retention, and innovation. While highlighting opportunities for cost optimization and international expansion, he also addressed challenges in moderating revenue declines and managing debt.

Key Takeaways

• Peloton is enhancing its marketing efficiency, aiming to reduce subscriber acquisition costs.
• The company plans to expand its retail presence and partnerships globally.
• Peloton is focusing on improving its free cash flow and adjusted EBITDA.
• The CEO announced new organizational hires and a strategic focus on innovation.
• Debt management includes plans to pay off a $200 million loan by February 2026.

Financial Results

• Free Cash Flow: Generated $211 million year-to-date as of Q3, targeting a quarter billion dollars.
• Adjusted EBITDA: Improved to $335 million, a $435 million increase over the previous year.
• Debt Management: Plans to pay off a $200 million zero-coupon loan by February 2026, with potential to reduce the total cost of capital.
• Connected Hardware Margins: Improved by a thousand basis points over the past year.

Operational Updates

• New Appointments: Hired Charlie Kyrill as COO, Dion Camp Sanders as CCO, and Diana Kraus for brand communication. The company is also seeking a CIO and CMO.
• Focus Areas: Kyrill will enhance supply chain and manufacturing, while Camp Sanders will drive growth in international, retail, and commercial segments.

Marketing Strategy

• Efficiency: Reduced marketing budget by 40% year-over-year, with a focus on efficient spending.
• Strategy: "Meet members everywhere" approach, including micro stores, third-party retail partnerships, and international expansion.
• Future Plans: Aiming to tell a new brand story and improve member retention.

Growth Strategy

• Growth Algorithm: Focuses on average revenue per member, number of members, and member lifetime.
• Member Acquisition: Expanding retail presence and partnerships with gyms and hotels.
• Product Roadmap: New innovations to be revealed post-Q4 earnings.

Future Outlook

• Revenue Growth: Expecting moderation in revenue declines and positive member subscription growth.
• Cost Optimization: Opportunities to address tech debt and right-size the cost structure.

For a detailed account of Peloton’s strategic plans, refer to the full transcript below.

Full transcript - Bank of America Global Technology Conference 2025:

Curt Nagel, SMidCap Internet Analyst, BofA: For joining. I’m Curt Nagel. I’m the SMidCap Internet analyst here at BofA. Very pleased to welcome Peter Stern, CEO of Peloton. Thanks for joining today, we’re really looking forward to the conversation.

Thanks for

Peter Stern, CEO, Peloton: having me, Curt. And I wanna just take a moment to acknowledge that today is global running day. So if you haven’t gotten out already, I would encourage you to do it. And we’re also launching today for the first time outdoor runs from Peloton Studios New York. Won’t work for those of you here in San Francisco, but this is something that we pioneered out in London.

People love it, and it’s just a great way to, you know, celebrate this this day.

Curt Nagel, SMidCap Internet Analyst, BofA: Perfect. So I guess the the first question I’d like to start with, Peter, six months on the job. Right? In terms of maybe just quickly talking through some of the organizational changes you’ve already made and kind of what’s left to do in getting, you know, the full senior management team kind of up and running.

Peter Stern, CEO, Peloton: Yeah. First, I just want to note that, Kurt, I stepped into a great team. And I’m I’m really grateful to the leaders that came before me for having recruited people on that team like we have Liz here in the audience, our CFO. But there were some areas where I felt like we had opportunity to grow. So the first change that I made was hiring our chief operating officer, Charlie Kyrill.

We’ve actually made great progress on a number of elements on supply chain over the years. It’s gotten a lot better. We can talk about it some more later at things like logistics. But we’re we make equipment as a company. We actually are as in we’re a manufacturer, and we needed a person who had deep experience in producing consumer electronics that we could scale and we could get those things to be more cost effective and also be more agile.

And Charlie, his background at places like iRobot and Stanley Black and Decker and GE was just the right person for that. Not to mention a rear admiral in the navy reserves. So incredible leadership characteristics. We also designated Dion Camp Sanders to be our chief commercial officer. That was in recognition of the fact that so many of our growth vectors are under his purview.

So Dion is responsible for everything from international to retail to our inside sales teams to our commercial business, including Precor. And so, you know, a lot of the the vectors for growth are under his his purview, and so we needed to recognize that. We, you know, we have some we still have some more work to do, but I’m I’m really happy to have Diana Kraus having joined a couple weeks ago to help tell the story of the new Peloton. She’s just an absolutely fabulous addition to our team. The next holes that we gotta fill are, one, we need a CIO.

We didn’t have a chief information officer at the company, so we had multiple tech organizations spread throughout that resulted in some inefficiencies, some tech debt that I think we can clean up as we get the right leadership. And that person’s gonna focus on automation and bringing AI to everything we do. And then the chief marketing officer is is the last one. And so that will be my partner in driving growth in the company, and hope to have some good news there soon.

Curt Nagel, SMidCap Internet Analyst, BofA: Maybe maybe just follow-up on that. So, you know, like you said, new CEO CMO, hopefully soon. I guess, do you think about that shaping the go forward marketing strategy? You’ve cut, you know, the budget by, I think, 40% kinda year over year. How do you expect to do more with less?

How does it, you know, different from the prior strategy? And just, yeah, kinda shaping, you know, marketing kinda going forward and, you know, from growth.

Peter Stern, CEO, Peloton: Yeah. So I think the the exercise over the last year or so has basically been trying to find the efficient frontier for us on marketing spend and getting to the point where we feel like we can acquire new members in a way that is really cost effective. We can see that manifesting in, for example, in the third quarter, our LTV to CAC ratio exceeded two. And so at this point, you know, on an average basis, we’re doing really well. The challenge now is for us to take the sophistication to the next level.

And and the way I think about that is de averaging. So the work now we’re starting to do is to basically say, by channel, how do we get the get to the point where the incremental subscriber acquisition cost of the last marginal customer is less, materially less ideally, but less than the lifetime value of that customer. That’s the level that we should be spending at and no further Because we take into consideration, of course, the cost of capital. So we’re doing, I think, what’s right by our shareholders in that situation, but we’re spending to the right level of growth by channel. So that de averaging is a big part of what we’ll be doing in in 2026.

Then, you know, that equation gets easier as we start to become more effective at both acquisition. So now the the the cost of acquiring an incremental subscriber will decline, as well as we get better at retaining our members and generating as much revenue and value from them as we can over their lifetimes that actually eases that equation. You have to, of course, sprinkle a little bit of marketing magic on top of all of that. And we have an opportunity, I think, to tell a really a new story working between communications and marketing about the brand, and that will be the real focus for next year. Understood.

Curt Nagel, SMidCap Internet Analyst, BofA: This in my view, kind of really interesting sort of or maybe transition point for Peloton. Right? Like, past year and a half or so, huge focus on margins, cleaned up the balance sheet,

Peter Stern, CEO, Peloton: you know, pretty

Curt Nagel, SMidCap Internet Analyst, BofA: dramatically. Now as we’re kinda talking about, right, getting back to, you know, a growth plan. So I guess in terms of, you know, your philosophy on balancing, you know, the margins and all the earnings and and growth, you know, what is it? Can can you do both, I guess?

Peter Stern, CEO, Peloton: Yeah. We can. I’m I’m quite confident that we can do both. It’s just gonna take a little bit of time to get sort of all the way to where we wanna get to. So let me let me tell you a little bit about the journey.

Right? So the journey that we’re gonna be on is one where we visualize a PNL for a company. We’re going to be migrating up the PNL, moving toward growth in each of the elements that we care about on that PNL. So the team’s already made just phenomenal progress, for example, on the free cash flow part of of the p and l. So, you know, having generated $211,000,000 year to date as the end of q three, basically, you know, talking about landing in the vicinity of a quarter billion dollars of of free cash flow, that’s tremendous progress.

We look at things like adjusted EBITDA, having moved that to give or take $335,000,000 of adjusted EBITDA, that’s up compared with the prior twelve months by $435,000,000. So you can you can start to see the the bottom of the p and l starting to take shape and telling, I think, a really compelling growth strategy story. You know, the next steps will be moving to operating income as we continue to get more efficient and and spending on the things that absolutely matter that drive our differentiation, but but not so much on the things that are basically what, you know, what you might call table stakes or keeping the lights on. Mhmm. As we as we go from there, sort of the the next big moment will be revenue.

And we’ll start to see the revenue declines moderate, I think, over time as we begin to deliver more innovation, more reasons for both existing and new members to buy into the hardware that we offer, as well as for us to do things like start to move the needle on customer lifetime with some of the initiatives that we’re delivering to improve the member experience. The last frontier will be turning the member subscription growth to positive. I think that happens as we deliver on the full array of initiatives that we’re working on to reach new members through new channels, as well as to materially improve the churn rate of of the members that we have.

Curt Nagel, SMidCap Internet Analyst, BofA: So and then kind of following up on that. Right? So you alluded some of the stuff, you know, in terms of the growth strategy. We’ll get kind of a, I think, you know, a plan or, you know, at least the the first kind of, you know, parts of the plan, you know, in the next coming months. I guess, could we talk about just in terms of just, like, what that growth algorithm is going to look like, least kind of a holistic or high level?

And I have a, know, couple of follow ups on on that.

Peter Stern, CEO, Peloton: Yeah. I mean, the the growth algorithm for the company is that part’s pretty straightforward. It’s average revenue per member times number of members times lifetime of a member. And if you multiply that out, that’s basically the top line value that we that we can create. Now the the hard part is how do you actually move the needle on those things?

And so, you know, I’ll unpack it a little bit. On the the average revenue per member, that’s basically a matter of the value that we’re delivering to the member. And the way that they’ll measure that is in terms of both the the results they anticipate getting from us as well as the results they actually achieve by being a Peloton member, which is why improving member outcomes is the first part of our strategy. It’s the area that we’re focusing really heavily on from innovation standpoint. Again, not here today to announce, you know, the the future product roadmap of the company.

I think, you know, we’ll we’ll do that a few weeks after the the the fourth quarter earnings because I think you know, I’d like to separate in time. We’ll do earnings. We’ll tell the growth story with even more specificity and give you a sense of what to expect in ’26. But then a few weeks after that, leading into the holidays, that’s the moment, I think, to tell that innovation story in a more consumer media oriented way. So that that investment in innovation is gonna be the first part that drives average revenue per member.

The second p piece is driving up the number of members. And the the way we do that is with this strategy that I call meet members everywhere. And there are so many ways that we can expand on the number of members we have, whether it’s our retail presence. You know, we have been in a period of contracting our retail presence. If you went back a few years, couple years, we had over a hundred retail stores, first party stores as a company.

We’re now down to 10 of those. But I I’m really feeling encouraged about the work that we’ve done in our micro store, and we’re gonna start to scale that sort of thing back up. So you can sort of see that we’re at the mid year of, you know, our first party retail presence. But you add to that the work that we can do on third party retail, both physical and online. We’ve had, I think, really great success with with Amazon, for example, as a channel.

We measure incremental sales, and they do generate real incremental sales for us. Retail is one of these vectors for meeting members everywhere. There are a lot more, though. Things like getting into gyms, more gyms. Right?

Because we’ve been at we’re an at home company, but we’re really lucky that we own Precor. We actually have one of the largest commercial gym equipment companies out there with tremendous credibility with gym operators, and they have what it takes to service the Peloton equipment that we put out there also and to put Peloton content on those devices, I think, is just some natural synergy that’s just waiting for us to achieve. Great way to meet people and and have them experience Peloton in that kind of setting. Look at hospitality. I think there is, you know, hopefully, many of you are staying in in hotels where you have access to Peloton equipment.

But this this is a must have amenity for hotels of a certain type, and we need to get to the stage where, you know, every hotel operator agrees with that. International is another one of these vectors for meeting members everywhere. Our penetration in international markets where we operate, UK, Germany, Austria, Australia, even Canada is a fraction of the penetration that we have in The US. So there’s there’s real opportunity there. Last but absolutely not least on this list is get back in the zeitgeist online.

You know, there was there was a period where, you know, the Peloton was basically uttered in in in any breath when people talked about fitness. And I I feel like, you know, we are we have made tremendous progress even over the last few months in terms of awareness, in the belief in members and nonmembers alike that we’re a leader not just in cycling, but in running, in walking, in strength, getting back into the zeitgeist, and taking advantage of our incredible instructors as ambassadors for the company along with activating our millions of members will help us meet members everywhere. The last piece but not least, and I I realized, Kurt, I’m I’m giving you sort of the the the full Yeah. Please. Version of this, but is member lifetime.

Because if we can keep the members we have for longer, that’s the best thing. First of all, it means that we’re treating them right. It also means that we don’t actually have to spend the money to acquire a member to replace that that member. And so we are investing quite a lot right now. More time as opposed to money and just bringing the right expertise in making sure that we nail every aspect of the member service experience because we should not be foot faulting with our valued members and losing them unnecessarily.

But we’re also beginning to, I think, really hit our stride in some things like teams. We know that being connected to others is one of those things that motivates people to stay with a fitness regimen. And so investing in these community features, I think, over time, will will start to show up in increased usage and decreased decreased churn.

Curt Nagel, SMidCap Internet Analyst, BofA: I guess as a just a follow-up, one thing we didn’t mention or talk about and very common question I get is how to think about pricing, right, particularly for the connected subs. Your predecessor was was wary, I think, of of potentially raising prices. Just think that the idea was maybe this hurts, you know, gross ads. How does your thinking differ or does it, you know, differ? You know, I

Peter Stern, CEO, Peloton: I don’t know exactly what what Barry’s thinking was about this, but what I do know is that we’re at a really different time right now. So, you know, when Barry joined, we weren’t that far off having done price increase on our subscription business. I think the last time that was done was in April of twenty two. But where we sit right now, right in June of twenty five, it’s been more than three years since we’ve we’ve made any kind of adjustment on that. So, again, I’m not here to say what we would or we we wouldn’t do, but what I what I will tell you is a little bit how about how we think about it because I’ve I’ve said on multiple occasions that it’s something that we think a lot about.

So for us, the question is, are we delivering not just sufficient value to our members? Are we delivering value in excess, right, of what we’re charging? And is the value increasing over time? And I think on all of those, the answer is is absolutely yes. You know, you can look at, for example, where we are from a programming standpoint.

We’re now, I think, over somewhere somewhere over 50,000 classes that are available on our platform. We’ve been introducing new types of classes, whether it’s rowing classes or kettlebell classes more recently in response to demand from our members. We’ve been adding all sorts of other features like our entertainment portal now. We just a couple weeks ago launched YouTube in there, and it’s already driving something like 14% of the entertainment consumption on our platform and driven up the entertainment usage there. I talked a little bit earlier about Teams.

The work that we’re doing on community features is something that we’re getting great feedback from our members on. And we we launched a strength plus app that’s just bundled into your all access membership. We know, you know, if we listen to the CDC and their recommendations about what an adult needs in order to be healthy, They need to do seventy five minutes of vigorous cardio activity week or a hundred and fifty minutes of moderate cardio activity week, and they should be doing two strength training sessions a week. Those things are equally important. And so the work that we did, for example, with Strength Plus is to make sure that we can provide a full full fitness diet, so to speak, for our members.

I can keep going on this, but the the I think the key point is we’re we’ve got, I think, a great value proposition for our members. It just keeps on getting better.

Curt Nagel, SMidCap Internet Analyst, BofA: Maybe just kind of dovetailing on that point about potential tailwinds about a greater focus on health. Right? In The US, it seems like, you know, it could be a pretty interesting opportunity. Maybe more specifically, the FIT Act. Right?

Which would allow people more seamlessly to use, you know, health account spend for things like Peloton and gyms and whatever. It’s a new reconciliation bill. I guess if it’s signed in law, how do you see that as, you know, potential growth driver for, I guess, member? Yeah.

Peter Stern, CEO, Peloton: I mean, I I love the FIT Act. By the way, it’s spelled p h I t. It’s currently past the house. Right? As we noted.

It’s it’s now, you know, up to the senate, and I really hope that they do the right thing here because let me explain what the FIT Act is. It it allows consumers to be able to apply their HSA, health spending account, or FSA, the flexible spending account dollars toward, among other things, fitness subscriptions. I think about $500 a year for individuals, a thousand dollars for a for a family or for, you know, filing jointly for the fitness subscription. And, you know, why do I think this is great? Right?

Because what we know is that fitness is probably some of the best medicine that you can give someone. Right? It has been demonstrated whether we’re talking about cardiovascular disease, whether we’re talking about metabolic dysfunction. In many cases, when we talk about things like issues with mental health, Exercise is more effective in most cases than any drugs that are out there and a lot more cost effective. So if we can give people an opportunity to put the money against that kind of investment in themselves as opposed to waiting until somebody gets sick where the costs are much, much higher for the government, then we are talking about something that’s great for the American population.

It’s great for the government. What this would do is then allow them consumers to basically use before tax income, right, to pay for the subscription as opposed to after tax income. So from a policy standpoint, I just I love the FIT Act, and I hope that, you know, congress follows through with it.

Curt Nagel, SMidCap Internet Analyst, BofA: Yesterday, announcement that we launched a new marketplace repowered, right, for used inventory, used hardware. Maybe tell us a little bit more about this this effort and how, I guess, important the resale market for hardware is to Peloton.

Peter Stern, CEO, Peloton: Yeah. I mean, there’s already a really robust secondhand market for Peloton equipment. I think in the last quarter, something like 45% of our new members came from from secondhand equipment. But it’s not well, I think a lot of people, it’s sort of a little uncomfortable. Right?

You have to go on a place, let’s say, like Facebook marketplace and interact with a stranger, and then somebody has to, you know, come to your house, and or you have to go to someone’s house you don’t know to to get the equipment. And we just wanna create a a more streamlined customer friendly way for sellers to be able to get rid of equipment. If they if for whatever reason they, you know, they fell off the horse and they are just not able to continue taking advantage of that equipment, that is doing nobody any good. Right? It’s not generating subscription revenue for us, first of all, but it’s also, if they’re not using it, helping that person stay fit.

And so I would rather get it in the hands of someone who will love and use that equipment. It’s great for our business, by the way, also. I mean, I know this is an investor conference, so I’ll just focus on that. All things being equal, I would be delighted to have new member come from a piece of equipment that we didn’t have to spend a dollar of capital on. Then one that we do have to spend the money on.

And, you know, from a from an environmental standpoint, getting that equipment back into somebody’s homes that will enjoy it is terrific. And we build the equipment to last. So the other the other thing I’ll note about this this secondary market is it’s just it’s phenomenal from a price tiering standpoint. And there was a period before I joined where the company was looking at, you know, is it should we should we make a sort of a a like a bargain basement version of of our bike? And, of course, we would never compromise at Peloton on the fundamental quality, but you have to make some trade offs in that situation.

Well, I think the team quite wisely realized is that consumers can solve this problem for us. We can get a product out there. I don’t know what the average selling price of those is, but I think it’s somewhere in the $6,700 range. That is a great product. It’s the product that we sold for, you know, two x that price at some point in the past.

And so they’re actually solving that tiering problem for us, and we didn’t have to make those compromises on the product.

Curt Nagel, SMidCap Internet Analyst, BofA: Great value, and then you don’t have to make margin either Yeah.

Peter Stern, CEO, Peloton: And and LTV. And the buyers can one of the options for the buyers will be to actually have it shipped to them so they don’t have to go into somebody else’s house.

Curt Nagel, SMidCap Internet Analyst, BofA: Yeah. And make it seamless and, yeah, unlock, you know, already an important market. Let me spend maybe just kind of the last, you know, five, six minutes on on on the margins and the cash flow. And, you know, again, it’s been a a great area of success for you. So maybe just starting with OpEx.

Right? I mean, you’re taking out hundreds of million dollars over the past few years. You’ve hit it at, you know, more sort of pockets for optimization. But, you know, I guess kind of going to the next fiscal year, should we assume another plan to be announced and kind of where do you see the biggest opportunities for takeout? You know, you mentioned the tech debt as as one.

Where where else could we we see him and could could you elaborate on sort of, you know, those points?

Peter Stern, CEO, Peloton: Yeah. Let me let me elaborate by starting with the last point and talking you know, we talked about tech tech debt, but tech debt sounds it’s just a convenient business term, and I want I wanna give you a sense of what what do I actually mean when I talk about tech debt. So I’ll give you I’ll give you a couple of examples of this. Right? Our we actually have, I think, a best in class partnership with a company called Kinaxis for our inventory management system, but we actually haven’t implemented the whole thing and tied it into all of our inventory management systems.

So right now, every quarter at the end of the quarter, we have to shut down our warehouses for three days and manually count every single thing we own. That’s an example of tech debt. And I’m really hopeful that as we look at, you know, the latter part of of our fiscal year ’26, we’ll be in a place where we have to do that sort of thing less frequently. Here’s another example of of of tech debt. Right now, I I mean, I think our global member support people are heroes, and the progress that we have made year over year in that area is nothing short of remarkable having from the mid threes in terms of member satisfaction scores to into the mid fours in a in a pretty short period of time.

But right now, we don’t have the tools for our global member support people to actually be able to see what our members are seeing. So if a member calls in with a question or a concern about a piece of their equipment, we basically have to sit sit on the phone with them and say, like, tell me what you’re seeing. And that is going it results in less than perfectly accurate diagnosis of the problem and and unfortunately, too often having to send someone out to the customer’s home to actually do the diagnosis and then maybe order parts and have a second visit. So tech debt manifests itself in both of those cases in, like, real costs and in some cases, impact for the member. So that’s the kind of thing that we’re we’re gonna be able to fix those sorts of things.

Some some tech debt problems take a long time, but we’ll be able to fix those things, I think, over the course of f y twenty six. And that enables us to start to take out more cost. That along with our G and A is just too high. We’ve got a project Liz and Charlie who I talked about earlier are leading this to look at our our spend on vendors. Our tail spend, I think, is is just too high.

All of that opens up opportunities for us to be able to just continue to right size the cost structure to reflect the revenue of the company.

Curt Nagel, SMidCap Internet Analyst, BofA: Really, the subject in terms of just thinking about a little higher in the p and l, connected hardware margins, a ton of progress there. And, you know, as you sort of alluded to, you know, under your new COO, some opportunities for continued gains. Could we see margins get above kind of the mid sort of teens we’re in now? Would you perhaps use, you know, additional efficiencies or or gains to to reinvest as a customer acquisition tool up? How should we think about the connected harbor margins?

Peter Stern, CEO, Peloton: Yeah. Mean, all of there’s so many things here all that are all kind of connected. The the way I first of all, I just want to take a moment to celebrate the progress that the company has made. Having moved a thousand basis points in the course of a year on our our our gross margins on our equipment is really quite is quite an achievement. A lot of that has basically been driven through improvements in things like inventory and logistics.

We haven’t fundamentally addressed the actual cost structure of the equipment itself. That is not something that you can do overnight because it requires reengineering, it requires evolving the relationships that we have with our key suppliers. Of course, it’s impacted by things like tariffs as well. But the the fact is that there is continued there’s more upside there. What I would say though is I I don’t really wanna guide to that number because I view the gross margins that we have in our equipment is is sort of a lever alongside our marketing spend that we’ll use to basically essentially modulate in order to to grow the company.

And so there may be there may be quarters, for example, where we do more on price on our equipment and we’ll spend relatively less on marketing. And then there may be quarters where we do the opposite. So there’s value creation opportunity. How it actually manifests, I think is, you know, a little bit more of an open question.

Curt Nagel, SMidCap Internet Analyst, BofA: Understood. And then, you know, going to the balance sheet, great position at the moment, leverage under two times and, you know, falling, plenty of excess cash. Right? Free cash flow, as you mentioned, you know, quarter billion this year. How do we think about the optimal amount of cash on the books?

I mean, that’s a question I get. Seeming like you might have too much. So in terms of, like, thinking about the debt pay down going forward, thinking about potential for share buybacks, particularly if you rewrite the debt, know, how how should we think about just optimal cash and kick return and and, you know, look at the balance sheet?

Peter Stern, CEO, Peloton: I just I just I just wanna take a moment to appreciate that question. Okay. Because a year ago, right, this company was sort of just just in the process, I think, of of refinancing the debt, and there were really fundamental questions about about the the company and our and our capital structure was really at the heart of those questions. So the fact that you’re even asking right now that we might have too much cash is just my, you know, music to my ears. Just at the at at the highest level, I think it’s just helpful to understand sort of what the the the debt stack looks like here.

We’ve got a couple hundred million dollar loan that comes due. It’s current right now in February of twenty six. We’re in no rush to pay it off because it’s zero coupon, but come February of twenty six, we’ll use cash to pay that off. So that’s the first step. We’ve got another $3.50 or so that the debt holders have certain rights on, and we’ll determine the right way to handle that when or if they decide to exercise those rights.

The last billion has some penalties associated with prepayment. They’re not onerous at this point, but I think there is an opportunity for us to take a look at that billion in the fullness of time, potentially get rated and then, you know, likely after the prepayment penalties are gone, see if there are ways for us to reduce our total cost of capital. So I I we’re taking, I think, a very deliberate approach here, but you’ll certainly see that 200,000,000 debt cash pay that off within the next year.

Curt Nagel, SMidCap Internet Analyst, BofA: Understood. Well, I think we’re out of time, Peter. Really appreciate your thoughts and time here. And, yeah, this was a fun discussion. Great.

Peter Stern, CEO, Peloton: It’s my pleasure. Thanks so much.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.