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Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

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Equity Bottom-Up

<ul><li>We are initiating coverage of Peloton Interactive, Inc. (NASDAQ: PTON), a leading global fitness and wellness company combining connected fitness hardware with subscription content.</li><li>Our FY26 GAAP EPS estimate is $0.09, compared with ($0.30) in FY25.</li><li>Our FY27 GAAP EPS estimate is $0.18, reflecting expanding operating leverage as restructuring benefits materialize. Peloton does not adjust EPS for one-time items.</li></ul>

We are initiating coverage of Peloton Interactive, Inc. (NASDAQ: PTON), a leading global fitness and wellness company combining connected fitness hardware with subscription content.Our FY26 GAAP EPS estimate is $0.09, compared with ($0.30) in FY25.Our FY27 GAAP EPS estimate is $0.18, reflecting expanding operating leverage as restructuring benefits materialize. Peloton does not adjust EPS for one-time items.

PTON: Initiating Coverage; The Healthspan Transformation; Four Pillars to Profitable Growth