Q3 25 EPS
$-0.12
MISS 110.53%
Est. $-0.06
Q3 25 Revenue
$624.0M
BEAT +0.44%
Est. $621.3M
vs S&P Since Q3 25
-38.1%
TRAILING MARKET
PTON -5.0% vs S&P +33.0%
Market Reaction
Did PTON Beat Earnings? Q3 2025 Results
Peloton posted a mixed fiscal third quarter, delivering a narrow revenue beat while falling well short on the bottom line as the connected fitness company continues its drawn-out turnaround under new CEO Peter Stern. Revenue came in at $624.00 millio… Read more Peloton posted a mixed fiscal third quarter, delivering a narrow revenue beat while falling well short on the bottom line as the connected fitness company continues its drawn-out turnaround under new CEO Peter Stern. Revenue came in at $624.00 million, edging past the $621.27 million consensus by 0.44%, though the figure still represented a 13.1% decline from a year ago as Connected Fitness Products revenue tumbled 27% year-over-year on softer hardware demand. The earnings picture was more troubling, with a loss of $0.12 per share missing the $-0.06 consensus estimate by 110.53%, weighed in part by $21.00 million in executive departure costs. The brighter story was margin expansion, with gross margin widening 780 basis points to 51.0% on a favorable mix shift toward higher-margin subscriptions, helping Adjusted EBITDA reach $89.40 million for a fifth consecutive positive quarter. Stern, who outlined a four-pillar strategic framework centered on member outcomes and operational discipline, responded by lifting full-year Adjusted EBITDA guidance to $330.00 million to $350.00 million and affirming Free Cash Flow of roughly $250.00 million.
Key Takeaways
- • Revenue mix shift toward higher-margin Subscription segment (67% of Q3 revenue)
- • Connected Fitness Products gross margin improved 1,010 bps YoY to 14.3% from lower inventory write-downs, higher-margin product mix, and lower warehousing/transportation costs
- • Operating expenses decreased 23% YoY reflecting cost structure right-sizing
- • Advertising and marketing spend decreased 46% YoY while hardware revenue declined at a comparatively lower 27% rate
- • Fifth consecutive quarter of positive Adjusted EBITDA and Free Cash Flow
- • Average net monthly churn held at 1.2%, stable YoY and improving 20 bps QoQ
PTON YoY Financials
Q3 2025 vs Q3 2024, source: SEC Filings
PTON Revenue by Segment
With YoY comparisons, source: SEC Filings
“In Q3, we delivered at the high end of or exceeded guidance on our key financial metrics while also continuing to execute on our FY25 operating goals. We delivered our fifth consecutive quarter of positive Adjusted EBITDA and Free Cash Flow due to improving hardware unit economics and right-sizing our overall cost structure.”
— Peter Stern, Q3 2025 Earnings Press Release
PTON Earnings Trends
PTON vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
PTON EPS Trend
Earnings per share: estimate vs actual
PTON Revenue Trend
Quarterly revenue: estimate vs actual
PTON Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 MISS | $0.08 | $0.06 | -20.42% | $630.9M | +2.13% |
| Q2 26 MISS | $-0.06 | $-0.09 | -53.85% | $656.5M | -2.76% |
| Q1 26 BEAT | $0.00 | $0.03 | +934.48% | $550.8M | +1.80% |
| Q4 25 BEAT FY | $-0.05 | $0.05 | +194.52% | $606.9M | +4.65% |
| FY Full Year | $-0.42 | $-0.30 | +27.90% | $2.49B | +1.18% |
| Q3 25 MISS | $-0.06 | $-0.12 | -110.53% | $624.0M | +0.44% |