Peloton Interactive, Inc. (NASDAQ:PTON), the connected fitness company currently valued at $3.63 billion, announced today the appointment of Tara Comonte as a new independent director to its Board, filling the vacancy left by Jon Callaghan's decision not to seek re-election.
Comonte brings a wealth of experience, with over 20 years in executive leadership across various sectors, including corporate and digital strategy, operations, and finance. Her appointment comes at a crucial time for Peloton, as the company maintains a solid liquidity position with a current ratio of 2.01, despite facing profitability challenges with a net loss of $393.5 million in the last twelve months.
She has been serving as the Interim President and CEO of WW International (NASDAQ:WW), Inc. since September 2024 and joined its board in June 2023. Prior to that, Comonte held the CEO position at TMRW Life Sciences, Inc. and has a notable history with Shake Shack Inc (NYSE:SHAK)., where she served as President and CFO.
Her earlier roles include Chief Financial & Business Affairs Officer at Getty Images Holdings, Inc., and CFO at McCann Worldgroup, among others. Comonte is a chartered accountant with a B.A. in Accounting and Finance from Heriot-Watt University.
Peloton's non-employee director compensation program will apply to Comonte, and she has entered into the company's standard form indemnification agreement for directors and officers. There are no reported arrangements or transactions involving Comonte that would require disclosure under SEC regulations.
In other recent news, Peloton Interactive has resolved a legal dispute and amended its bylaws, settling a class action lawsuit initiated by Eric Gilbert. The settlement includes a payment of $125,000 in legal fees. In financial news, Peloton's strategic shift towards profitability has been recognized by several firms. Deutsche Bank (ETR:DBKGn) maintained its Hold rating on Peloton's stock, adjusting the price target to $6.20 based on an improved EBITDA outlook for FY25.
BMO (TSX:BMO) Capital Markets upgraded its stock target from $6.50 to $8.50, reflecting the company's strong first-quarter performance. Peloton's earnings report revealed a GAAP operating income of $13 million, free cash flow of $11 million, and adjusted EBITDA of $116 million.
The company's subscription base now includes over 6 million members, generating $1.7 billion in annualized subscription revenue. In leadership news, Peter Stern (AS:PBHP) is set to become CEO in January. Peloton also launched a marketing campaign targeting millennial males and announced plans for expansion in Germany.
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