Peloton Interactive Inc

Latest Results (18.05.2026):

Peloton Interactive, Inc. reported results for Q2 FY2026 (quarter ended December 31, 2025). The company delivered improved profitability and raised full‑year Adjusted EBITDA guidance while revenue and connected‑fitness subscriptions declined modestly year‑over‑year. Key numbers: Total revenue ~$657M, Total gross margin 50.5%, GAAP net loss ~$39M, Adjusted EBITDA $81M, Ending Paid Connected Fitness Subscriptions 2.661M.

Financial snapshot

Q2 FY2026 revenue was ~$657 million (down ~3% YoY). Total gross margin was 50.5% (up 320 bps YoY). GAAP net loss was about $39 million and Adjusted EBITDA was $81 million (up 39% YoY).

Profitability and cash flow

Adjusted EBITDA improved materially to $81M and the company raised FY26 Adjusted EBITDA guidance to $450–$500M. GAAP operating cash flow for the quarter was $72M and Free Cash Flow was $71M (down $35M YoY). Net Debt declined meaningfully (company says Net Debt down 52% YoY; Net Debt reported at $319M).

Subscriptions and engagement

Ending Paid Connected Fitness Subscriptions were 2.661 million, down 214,000 (‑7% YoY). Average workout time per Connected Fitness Subscription rose 7% YoY and nearly half of active Members had engaged with Peloton IQ by quarter end, indicating stronger engagement despite subscription declines.

Product and business highlights

Peloton introduced the Cross Training Series (Plus line with advanced computer vision), rolled out Peloton IQ to all Members, expanded instructors and Strength content, and reported double‑digit year‑over‑year revenue growth in its Commercial Business Unit.

Outlook (Q3 FY2026 and FY2026)

Q3 FY26 guidance: Ending Paid Connected Fitness Subscriptions 2.650–2.675M, revenue $605–$625M, total gross margin ~54%, Adjusted EBITDA $120–$135M. Full‑year FY26 guidance: revenue $2.40–$2.44B (down ~3% YoY at midpoint), total gross margin ~53%, Adjusted EBITDA $450–$500M, and a Free Cash Flow minimum target of $275M.

Balance sheet & leverage

Cash and cash equivalents were strong (cash ~$1.18B on the balance sheet and total cash, cash equivalents and restricted cash ~$1.22B). Trailing‑12‑month Adjusted EBITDA and cash reduced gross and net leverage versus prior year (Gross Leverage Ratio improved to 3.6x and Net Leverage Ratio to 0.8x at Dec 31, 2025).

Accounting/measure change

Beginning in Q1 FY2026 Peloton allocated certain executive compensation and corporate overhead to cost of revenue and revised its segment profitability measure to "Segment Adjusted Gross profit"; the company notes this makes gross margin figures not directly comparable to prior periods.