Quick Look:

  • Peloton Interactive Chief Financial Officer Liz Coddington will step down next month, the company announced in a press release and securities filing Thursday, as she moves to an unnamed opportunity "outside the industry."
  • On the same day, consumer energy company Palmetto announced Coddington will become its CFO on March 30, as it seeks to enter a new growth phase.
  • Coddington will step down from her role at New York-based Peloton on March 27, and will not receive severance or benefits upon departure, according to a filing with the U.S. Securities and Exchange Commission, which stated the departure was not due to any disagreements or issues regarding financial disclosures or accounting measures. Peloton said it will begin a "comprehensive" search for a successor.

Deep Dive:

Palmetto, headquartered in Charlotte, North Carolina, cited Coddington's experience in scaling complex, consumer-facing, and technology-driven businesses when announcing her appointment.

"As we continue to grow and support consumers' access to affordable, reliable energy solutions, her strategic discipline, operational rigor, and credibility with consumers and investors will be invaluable," Palmetto CEO Chris Kemper said in a statement in the press release.

Before joining Peloton in 2022, Coddington spent six years at Amazon, serving as Vice President of Finance for AWS Services, among other roles; she previously served as Vice President of Finance and CFO at Walmart.com, and spent four years at streaming service Netflix.

During her tenure at the fitness company, she "played a key role in Peloton's ongoing transformation," Peloton CEO and President Peter Stern said in a statement.

"As Liz moves to her next opportunity, she leaves us not only with a healthier balance sheet but also a renewed financial discipline. She helped pave the way for our vision to go beyond connected fitness and achieve connected health," Stern said in a statement in Thursday's press release.

Under Coddington's financial leadership, the company launched a series of cost-cutting and recovery initiatives, following record-high sales during the COVID-19 pandemic.

In August, Peloton announced a global restructuring plan targeting at least $100 million in annual cost savings by the end of fiscal 2026, CFO Dive reported at the time. The plan includes reducing indirect expenses and cutting approximately 6% of its global workforce.

The ongoing restructuring efforts led to wider margins and reduced operating expenses in the most recent quarter ended December 31, Stern said Thursday on an earnings call, according to a transcript.

Total operating expenses—excluding restructuring, impairment, and supplier settlement costs—fell 7% year-over-year to $320 million, Coddington said on the call, "which reflects the continued progress we are making in adjusting our cost structure."

The company's profitability continued to improve, reporting gross profit up 4% year-over-year to approximately $331 million. However, Peloton also reported member subscriptions down 7% year-over-year to 2.6 million, with total revenue down 3% year-over-year to $657 million in the same period, $8 million below the company's guidance range—which the company primarily attributed to lower-than-expected sales to existing members.