PELOTON INTERACTIVE (PTON) Company Report

Peloton reported Q2 2026 Adjusted EBITDA of $81 million, a 39% year-over-year increase, which was $6 million above the high end of their guidance range, and generated $71 million in free cash flow.
The company significantly improved its balance sheet, reducing net debt by 52% year-over-year to $319 million and ending Q2 with $1,180,000 in unrestricted cash and cash equivalents.
While Q2 2026 revenue came in below guidance, primarily due to fewer than expected equipment sales to existing members, Peloton raised its full-year fiscal 2026 Adjusted EBITDA guidance to $450 million-$500 million and its minimum free cash flow target to at least $275 million.
Peloton is evolving from a connected fitness company to a connected wellness company, focusing on expanding its commercial business unit, which achieved 10% revenue growth year-over-year, and leveraging AI-driven personalization with Peloton IQ.
The company remains on track to achieve its $100 million run rate savings goal by the end of Fiscal Year 2026 and expects to achieve positive operating income on a full year basis in fiscal 2026.

1 day ago

Transcript

Peloton Reports Q2 2026 Results, Updates FY26 Guidance

PTON

Earnings

Guidance Update

Product Launch

Peloton reported Q2 2026 total revenue of $657 million and Adjusted EBITDA of $81 million, marking a 39% year-over-year increase.
The company significantly improved its balance sheet, reducing net debt by 52% year-over-year to $319 million and generating $71 million in free cash flow in Q2.
Q2 revenue came in below guidance, primarily due to lower-than-expected equipment sales of the new Cross Training Series to existing members, though sales to new members were in line with expectations.
Peloton raised its full-year fiscal 2026 Adjusted EBITDA guidance to $450 million-$500 million and its minimum Free Cash Flow target to at least $275 million, while slightly lowering the total revenue outlook to $2.40 billion-$2.44 billion.
The company continues its strategy of evolving into a connected wellness company, launching new products like the Cross Training Series and AI-powered Peloton IQ, and reported 10% year-over-year revenue growth in its commercial business unit.

1 day ago

Transcript

Peloton Reports Q2 2026 Results, Highlights Profitability and Raised Full-Year Guidance

PTON

Earnings

Guidance Update

Product Launch

Peloton reported Q2 2026 total revenue of $657 million, which was below guidance primarily due to lower equipment sales to existing members, but achieved strong profitability with Adjusted EBITDA growing 39% year-over-year to $81 million and a total gross margin of 50.5%.
The company significantly improved its financial foundation, reducing net debt by 52% year-over-year to $319 million and ending Q2 with $1.18 billion in unrestricted cash and cash equivalents.
Peloton raised its full-year fiscal 2026 guidance, with Adjusted EBITDA now projected at $450 million-$500 million and a minimum Free Cash Flow target of at least $275 million, reflecting continued cost discipline and progress towards its $100 million run rate savings goal.
Strategically, Peloton is evolving into a connected wellness company, having launched new offerings like the Cross Training Series and AI-powered Peloton IQ, while also expecting to achieve positive operating income on a full year basis in fiscal 2026.

1 day ago

Transcript

Peloton Announces Q2 FY2026 Financial Results and CFO Departure

PTON

Earnings

Guidance Update

CFO Change

Peloton reported Q2 FY2026 total revenue of $657 million, a 3% decrease year-over-year, alongside a 39% increase in Adjusted EBITDA to $81 million.
The company recorded a GAAP Net loss of $39 million and saw Ending Paid Connected Fitness Subscriptions decrease by 7% year-over-year to 2.661 million.
Peloton raised its Full Year FY2026 Adjusted EBITDA guidance to a range of $450 million to $500 million.
Chief Financial Officer Liz Coddington will step down from her position, effective March 27, 2026, to pursue an external opportunity.

1 day ago

8-K

Peloton Interactive Announces Q2 FY2026 Financial Results and Raises Full Year Adjusted EBITDA Guidance

PTON

Earnings

Guidance Update

Demand Weakening

Peloton Interactive reported Q2 FY2026 Total Revenue of $657 million, a 3% decrease year-over-year, and a GAAP Net loss of $39 million.
Adjusted EBITDA for Q2 FY2026 increased by 39% year-over-year to $81 million.
Ending Paid Connected Fitness Subscriptions for Q2 FY2026 were 2.661 million, representing a 7% decrease year-over-year.
The company raised its Full Year FY2026 Adjusted EBITDA guidance to $450 - $500 million.

1 day ago

Press Release

Peloton Announces Further Workforce Reductions

PTON

Layoffs

Demand Weakening

Product Launch

Peloton implemented a workforce reduction of approximately 11% of its global staff on January 30, 2026, with cuts concentrated among engineering and enterprise-focused teams.
These layoffs are part of a previously announced effort to save roughly $100 million and follow an earlier 6% workforce reduction in August.
The decision comes after lackluster sales of last year’s upgraded, Peloton IQ AI-enabled hardware and a recall of about 877,800 units of a prior high-end Bike model in late 2025.

7 days ago

Bloomberg

Peloton Outlines New Growth Strategy, Product Launches, and Financial Plans

PTON

Product Launch

Guidance Update

Debt Issuance

Peloton has launched a new growth strategy, including the Peloton Cross Training Series and the first-ever commercial line, Peloton Pro Series, expanding its product lineup from five to nine items. It also introduced Peloton IQ, an AI-powered personal coach, which was rolled out to millions of members.
The company has reduced its net debt by half over the last year and aims to save an additional $100 million in FY26 on a run rate basis, having already achieved half of this target.
Despite a recent price increase, Peloton expects churn to remain flat for the full year, driven by a tenure effect, increased member workouts, and a rapid moderation in cancellations post-price hike.
Peloton is expanding its distribution footprint through micro-stores and a partnership with 100 Johnson Fitness and Wellness stores across the U.S.. The company also plans to refinance its $1 billion term loan around May, aiming for a lower cost of capital and increased flexibility for potential share buybacks or M&A.
Executive compensation has been shifted towards performance-based stock units, and stock ownership requirements have been implemented for top executives to align with shareholder interests and reduce dilution.

Dec 3, 2025, 6:30 PM

Transcript

Peloton Outlines New Growth Strategy and Debt Refinancing Plans

PTON

Product Launch

Debt Issuance

New Projects/Investments

Peloton launched a new growth strategy including the Peloton Cross Training Series (nine new residential products), the Peloton Pro Series (first commercial line), and Peloton IQ, an AI-powered personal coach, which has led to a 4% increase in workouts per member in October.
The company reduced its net debt by half over the last year and plans to refinance a $1 billion term loan around May to lower the cost of capital and gain flexibility for potential share buybacks or M&A. A $200 million zero-coupon debt is due in February.
Peloton exceeded its FY25 target of $200 million in run-rate savings and is halfway to achieving another $100 million in savings for FY26. Connected Fitness gross margins are expected to improve in Q2 compared to Q1.
Despite a recent subscription price increase, churn is flat for the year, attributed to a tenure effect, increased member engagement from new software, and a rapid moderation in churn post-price increase.

Dec 3, 2025, 6:30 PM

Transcript

Peloton Outlines New Growth Strategy and Debt Refinancing Plans

PTON

Guidance Update

Product Launch

Debt Issuance

Peloton has implemented a new multi-year growth strategy, launching the Peloton Cross Training Series and Peloton Pro Series products, alongside the AI-powered Peloton IQ software, which has led to a 4% increase in workouts per member in October.
The company has reduced its net debt by half over the past year and is on track to achieve $100 million in savings for FY 2026.
Peloton plans to refinance a $1 billion term loan around May to reduce the cost of capital and gain financial flexibility for potential buybacks or M&A.
The company is expanding its distribution through micro-stores and a partnership with Johnson Fitness & Wellness, while maintaining a flat churn rate for the year despite a price increase.

Dec 3, 2025, 6:30 PM

Transcript

Peloton Exceeds Q1 2026 Guidance and Raises Full-Year Outlook

PTON

Earnings

Guidance Update

Product Launch

Peloton reported Q1 2026 total revenue of $551 million and Adjusted EBITDA of $118 million, exceeding guidance on most key financial metrics. The company also generated $67 million in free cash flow.
The company announced a voluntary recall of approximately 833,000 Bike Plus units in the US and 44,800 in Canada due to a seat post issue, with a $13.5 million accrual impacting Q1 gross margin.
Peloton launched a new equipment lineup (Cross Training Series, Pro Series) and Peloton IQ, an AI-powered personalized coaching feature, on October 1st.
Management raised its full-year fiscal 2026 guidance for total gross margin to 52%, adjusted EBITDA to $425 million-$475 million, and the minimum free cash flow target to at least $250 million.
The company continued to strengthen its balance sheet, with net debt decreasing by 49% year-over-year to $395 million and a net leverage ratio of 1.1.