Stern, who is currently president of Ford Integrated Services, will join Jan. 1, the company said Thursday. Peloton also delivered its latest financial report, saying that revenue would be $640 million to $660 million in the second fiscal quarter. The midpoint of that range would be down 13% from a year earlier and below the $663.5 million that analysts had projected.

Peloton, which thrived during pandemic lockdowns, has been mired in a deep slump over the past three years. Tech veteran Barry McCarthy was hired in early 2022 to turn around the business — best known for its stationary bikes and online classes — but stepped down earlier this year. Board Chair Karen Boone and director Chris Bruzzo had been serving as interim co-CEOs while Peloton sought its new leader. 

As part of its earnings, Peloton also projected second-quarter subscriber numbers that were below analyst estimates, though its outlook for earnings before interest, taxes, depreciation and amortization was slightly better than anticipated — a sign that cost cuts may be bearing fruit. Peloton also pointed to improvements in free cash flow. 

“We’re achieving our cost savings targets faster than we expected as a result of strong execution,” the New York-based company said.

For the full year ending next June, Peloton forecast revenue of $2.4 billion to $2.5 billion, the midpoint of which is down 9% from a year earlier. Analysts estimated $2.46 billion. The company expects its connected fitness subscribers to fall 9% at the midpoint of its range to about 2.72 million. Analysts were anticipating 2.81 million. 

Ebitda was also the bright spot in the full-year forecast. The midpoint of Peloton’s range is $265 million, well above the $232.4 million analysts had targeted.

In the first quarter, earnings amounted to $115.8 million by that measure. Analysts were predicting $56.6 million. Though revenue fell 2% to $586 million from a year earlier, that was better than the $573 million analysts were predicting.