3 LACK OF FINANCIAL DISCIPLINE: BLOATED SG&A COSTS WEIGHS ON CASH BALANCE Out-of-control employee and SG&A expenses reflect a lack of discipline ▪ Over the past four years Peloton’s employee count Peloton Employee Growth 2017 – Today has grown by over 20x 8,662 8,976 ▪ SG&A costs have nearly tripled in the last three years 3,694 1,954 ▪ Compared to other subscription-based companies, 443 Peloton has the lowest revenue per employee FY 17 FY 19 FY 20 FY 21 Curent ▪ The Company now appears to be reversing course: rumors Revenue Per Employee Peloton Vs. Subscription Peers are that it will fire a significant portion of its workforce $2,956,881 $2,373,055 $1,887,939 “We’re insanely disciplined”1 $1,608,808 $1,451,986 –Foley, on CNBC the day of Peloton’s IPO $471,397 NFLX SPOT MTCH SIRI ROKU PTON Source: CapIQ, Company filings. 32 1. Source: Mr. Foley on CNBC September 26, 2019: https://www.youtube.com/watch?v=L-PcR2f0EKE.