Peloton tries to mask the extent of its losses by highlighting Adjusted EBITDA, every unprofitable company's favorite metric. This metric excludes $90 million in stock-based compensation expense, $22 million in depreciation and amortization, $12 million in litigation expense, and $7 million in construction costs related to its new corporate headquarters. In total, Peloton's Adjusted EBITDA excludes $124 million (14% of revenue) in expenses, while also ignoring the company's cost of capital. More often than not, we're seeing private companies and investors operate as if capital has no costs.