Peloton Interactive Inc - Class A
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did PTON Beat Earnings? Q2 2026 Results
Peloton turned in a mixed second quarter for fiscal 2026, missing on both the top and bottom lines as softer Connected Fitness Product sales to existing members weighed on results. Revenue declined 2.6% year-over-year to $656.50 million, falling short of the $675.13 million consensus, while a loss per share of $0.09 came in 53.85% wider than the $0.06 estimate. Yet beneath the headline misses, the profitability story offered more encouragement: gross margin expanded 320 basis points to 50.5% and Adjusted EBITDA surged 39% year-over-year to $81.40 million, beating guidance's high end by $6.00 million. The quarter also carried an executive transition, with CFO Liz Coddington announcing her departure as Peloton released results. Looking ahead, management raised full-year Adjusted EBITDA guidance to $450.00 million to $500.00 million, up $25.00 million from prior targets, and lifted its Free Cash Flow minimum to $275.00 million, signaling growing confidence in the company's financial trajectory even as revenue guidance was trimmed to $2.40 billion to $2.44 billion.
- 39% year-over-year growth in Adjusted EBITDA driven by operational discipline
- Gross margin expanded 320 bps year-over-year to 50.5%
- Better-than-expected subscription churn following membership price increases
- 7% year-over-year increase in Average Workout Time per Connected Fitness Subscription
- Double-digit revenue growth in Commercial Business Unit
- Net Debt reduced 52% year-over-year
“Our second quarter represented the most substantial period of innovation at Peloton since our founding. At the same time, our financial performance demonstrated our continued operational discipline, resulting in 39% year-over-year growth in Adjusted EBITDA and reducing Net Debt by 52% year-over-year, proving we can simultaneously innovate and increase our profitability.”
Peloton CEO, on the earnings call
Forward Guidance & Outlook
For Q3 FY26, Peloton expects Ending Paid Connected Fitness Subscriptions of 2.650–2.675 million (down ~8% YoY at midpoint), Total Revenue of $605–$625 million (down ~1% YoY at midpoint), Total Gross Margin of approximately 54.0% (up 300 bps YoY), and Adjusted EBITDA of $120–$135 million (up ~43% YoY at midpoint). For full-year FY26, the company guides Total Revenue of $2.40–$2.44 billion (down ~3% YoY), Total Gross Margin of approximately 53.0% (up 210 bps YoY, raised 100 bps from prior outlook), Adjusted EBITDA of $450–$500 million (up ~18% YoY, raised $25 million from prior outlook), and a Free Cash Flow minimum target of $275 million (raised $25 million from prior outlook).
PTON YoY Financials
PTON Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.