Peloton

Peloton (PTON) Q4 2025 Earnings

Reported Aug 7, 2025 at 6:59 AM ET · SEC Source

Q4 25 EPS

$0.05

BEAT +194.52%

Est. $-0.05

Q4 25 Revenue

$606.9M

BEAT +4.65%

Est. $579.9M

vs S&P Since Q4 25

-40.3%

TRAILING MARKET

PTON -21.4% vs S&P +18.9%

Full Year 2025 Results

FY 25 EPS

$-0.30

BEAT +27.90%

Est. $-0.42

FY 25 Revenue

$2.49B

BEAT +1.18%

Est. $2.46B

Market Reaction

Did PTON Beat Earnings? Q4 2025 Results

Peloton delivered a sharper-than-expected turnaround in Q4 FY25, posting earnings per share of $0.05 against a consensus estimate of negative $0.05, a 200.00% beat, while revenue of $606.90 million cleared the $577.93 million consensus by 5.01% despi… Read more Peloton delivered a sharper-than-expected turnaround in Q4 FY25, posting earnings per share of $0.05 against a consensus estimate of negative $0.05, a 200.00% beat, while revenue of $606.90 million cleared the $577.93 million consensus by 5.01% despite falling 5.7% year over year. The headline story was profitability: the company recorded its first quarterly GAAP net income of $21.60 million, a dramatic reversal from a $30.50 million net loss in the year-ago period, with adjusted EBITDA reaching $140.00 million and nearly doubling year over year. The outperformance was driven primarily by stronger-than-expected hardware sales and a 560 basis point expansion in total gross margin to 54.1%, as cost discipline pushed operating expenses down 20% year over year. Still, the company announced another round of job cuts targeting 6% of its global workforce as part of a new restructuring plan aimed at delivering at least $100.00 million in run-rate savings by end of FY26. Looking ahead, Peloton guided FY26 revenue of $2.40 to $2.50 billion and adjusted EBITDA of $400.00 to $450.00 million, with management targeting its first-ever positive full-year operating income.

Key Takeaways

  • Connected Fitness Products revenue outperformance driven by higher-than-expected hardware sales of both Peloton and Precor products
  • Total gross margin expanded 560 bps YoY to 54.1%, driven by improvements in both segments
  • Connected Fitness Products gross margin improved 900 bps YoY to 17.3%
  • Subscription gross margin improved 370 bps YoY to 71.9%, aided by $11M one-time music royalty adjustments
  • Operating expenses decreased 20% YoY, exceeding $200M run-rate cost savings target
  • Average monthly workout time per Paid Connected Fitness Subscription increased 4% YoY in Q4
  • Inventory reduction created significant net working capital benefit to Free Cash Flow
24/7 Wall St

PTON YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

24/7 Wall St

PTON Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“When I started at Peloton, I promised to share our strategy during our fiscal year-end earnings. So here it is–simple and short, with the assurance that we will bring this strategy to life throughout the year, including through a reveal of our innovations before our next earnings call.”

— Peter Stern, Q4 2025 Earnings Press Release