Peloton Has An Expense Problem
A look at the company’s P&L raises serious questions about its administrative costs
Jimmy McMillan had a point. Just one. The rent is too damn high.
McMillan founded the Rent Is Too Damn High party and ran for mayor of New York City in 2005 and 2009 and governor of New York state in 2010. While his bids were unsuccessful — McMillan never won more than 1% of the vote — he succeeded in going viral, spawning memes and even a music video.
McMillan retired from politics in December 2015, so he’s probably never seen Peloton’s income statement. If he did, he’d have a second point:
Peloton’s P&L
Over the past five years, Peloton has grown sales from $218M to $4.0B, nearly 20x. Over this span, net income deteriorated slightly from a loss of $71M to a loss of $189M. The company has generated positive adjusted EBITDA, a less stringent profitability metric popular in tech that excludes expenses like stock-based compensation, depreciation and amortization, and one-off items like recall expenses.
