Peloton Interactive Inc - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.47%.
Did PTON Beat Earnings? Q1 2026 Results
Peloton posted a sharply profitable first quarter of fiscal 2026, delivering results that cleared Wall Street's bar on both earnings and revenue while signaling the fitness company's ongoing cost-driven recovery. The company reported EPS of $0.03 against a consensus estimate of $0.00, a beat of 934.48%, and revenue of $550.80 million, topping the $541.08 million consensus by 1.80%, even as the top line contracted 6.0% year-over-year amid a continued slide in its subscriber base. The real story was profitability: GAAP net income swung to $13.90 million from a net loss of $900,000 a year ago, powered by a 17% year-over-year reduction in operating expenses as sales, marketing, and general administrative costs all declined meaningfully. Adjusted EBITDA of $118.30 million beat the high end of guidance by $18.00 million, and free cash flow surged to $67.40 million from $10.70 million. Encouraged by the momentum, management raised full-year FY26 Adjusted EBITDA guidance to $425.00 million to $475.00 million and lifted its free cash flow minimum target to $250.00 million, with Goldman Sachs among the analysts lifting price targets following the report.
- Disciplined cost management drove 17% YoY reduction in total operating expenses
- Improved subscription churn to 1.6% from 1.9% YoY
- Average Workout Time per Connected Fitness Subscription increased 5% YoY
- $13.5M accrual for Bike+ seat post inventory costs weighed on gross margin
“In this quarter leading up to the launch of our new equipment lineup and Peloton IQ, our team once again demonstrated the power of disciplined execution and focus. Our continued momentum on bottom line performance sets the stage for improvements on the top line as we progress through the fiscal year, fueled by our commitment to innovation and growing the Peloton community. I am confident in our team's ability to execute our strategic plan, return Peloton to profitable growth, and extend Peloton's lead in connected fitness and wellness.”
Peloton CEO, on the earnings call
Forward Guidance & Outlook
Q2 FY26: Revenue expected $665M–$685M (flat YoY at midpoint, +23% QoQ), Total Gross Margin ~49.0% (+180 bps YoY), Adjusted EBITDA $55M–$75M (+11% YoY at midpoint), Ending Paid Connected Fitness Subscriptions 2.64M–2.67M (-8% YoY at midpoint). Full Year FY26: Revenue $2.4B–$2.5B (-2% YoY at midpoint, unchanged from prior outlook), Total Gross Margin ~52.0% (+110 bps YoY, raised 100 bps from prior outlook), Adjusted EBITDA $425M–$475M (+12% YoY at midpoint, raised $25M from prior outlook), Free Cash Flow minimum target of $250M (raised $50M from prior target).
PTON YoY Financials
PTON Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.