Peloton Reveals Big Losses Ahead of Highly Anticipated IPO

Fitness company Peloton, known mostly for its cycles and treadmills that have screens allowing users to join live and recorded fitness classes, is about to debut in the market soon.

Ahead of the company’s initial public offering, it has filed documents with securities regulators that have revealed widening losses.

In the fiscal year ended June 30, 2019, Peloton reported that sales saw a growth of 110% to $915 million from $435 million in fiscal 2018. It’s 2019 net loss however had widened to $245.7 million, from a net loss of $47.9 million in the prior year.

Peloton expects to raise $500 million in its offering and according to the documents it is planning to further expand its international foothold, which it cautioned will bring with it new costs.

The registration documents reveal that Peloton’s goal is to make the at-home fitness experience “as physically rewarding and addictive as attending a live, in-studio class.”

Peloton said it has “consistently seen workouts increase over time,” as evidence of the engagement of its subscribers. The company says it has 1.4 million members with accounts. Subscriptions to access classes cost $39 per month.

The company has landed on CNBC’s “Disruptor 50” list for the past two years.

Peloton has said that it will sell Class B stock that grants 20 votes per share. It will list under the ticker “PTON,” and expects to trade its shares on Nasdaq. It is working with underwriters including Goldman Sachs & Co and J.P. Morgan.