Peloton Interactive (NASDAQ:PTON – Get Free Report) announced its quarterly earnings results on Thursday. The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.02, FiscalAI reports. Peloton Interactive had a negative return on equity of 23.92% and a net margin of 2.58%.The business had revenue of $607.70 million for the quarter, compared to analyst estimates of $596.60 million. During the same quarter in the prior year, the company earned $0.05 earnings per share. The company’s quarterly revenue was up .1% on a year-over-year basis.
Here are the key takeaways from Peloton Interactive’s conference call:
- Peloton achieved its first full year of positive net income and operating income, at $63 million and $161 million, respectively. Adjusted EBITDA rose 16% to $468 million and free cash flow increased 17% to $378 million.
- Management expects further profitability gains in FY2027, guiding to adjusted EBITDA of $475 million-$525 million, total gross margin of roughly 54%, and minimum free cash flow of $350 million. Cost savings exceeded the company’s $100 million run-rate target.
- Peloton plans new consumer product innovations, its Peloton Commercial Series bike and treadmill, and new product categories beginning in fall calendar 2027. Management expects commercial growth and future categories to establish a foundation for revenue acceleration.
- Peloton IQ personalization reached more than 50% of monthly active users, while Pilates workout activity rose sharply year over year. The company is also expanding distribution through micro stores, retail partners, Spotify, and wearable integrations.
- FY2027 revenue guidance of $2.3 billion-$2.4 billion implies a 3.9% year-over-year decline at the midpoint, and connected fitness subscriptions are expected to fall roughly 9.8% year over year in Q1. Q4 net churn increased 37 basis points year over year, while a $23.8 million patent-litigation contingency was accrued and the company is pursuing a balance-sheet refinancing.
Peloton Interactive Price Performance
Shares of NASDAQ PTON traded up $0.17 during midday trading on Friday, reaching $5.68. The company’s stock had a trading volume of 12,703,358 shares, compared to its average volume of 8,671,014. Peloton Interactive has a 12-month low of $3.65 and a 12-month high of $9.20. The stock has a market capitalization of $2.46 billion, a P/E ratio of 47.34, a PEG ratio of 0.41 and a beta of 2.52. The firm has a 50 day moving average price of $5.98 and a 200-day moving average price of $5.23.
Key Stories Impacting Peloton Interactive
- Positive Sentiment: Peloton reported fiscal Q4 adjusted earnings of $0.13 per share, above the $0.11 analyst consensus, while revenue of $607.7 million also exceeded expectations of $596.6 million. Peloton Beats Q4 Earnings and Revenue Estimates
- Positive Sentiment: The company delivered its first full-year net profit, reporting $63 million in GAAP net income for fiscal 2026. Full-year free cash flow rose 17% to $378 million, adjusted EBITDA increased 16% to $468 million, and net debt declined 80% to $93 million, strengthening its financial position. Peloton Announces Q4 and FY2026 Financial Results
- Positive Sentiment: Management expects gross margin and adjusted EBITDA to improve in fiscal 2027, indicating continued emphasis on cost control and profitability. Peloton Delivers First Annual Net Profit
- Neutral Sentiment: Unusually high options activity was reported, with investors purchasing 36,978 call contracts—about 43% above average volume—but this reflects positioning rather than a change in Peloton’s fundamentals.
- Negative Sentiment: Peloton forecast fiscal 2027 revenue of $2.3 billion to $2.4 billion, below the roughly $2.4 billion consensus at the midpoint. First-quarter revenue guidance of $545 million to $565 million also trailed the $565.6 million analyst estimate. Peloton Shares Slump as Soft Outlook Overshadows Fiscal Q4 Beat
- Negative Sentiment: The fiscal 2027 revenue midpoint implies an approximately 3.9% year-over-year decline. Paid connected-fitness subscription cancellations, or churn, accelerated during Q4, raising concerns about weaker user growth and future recurring revenue. Peloton Forecasts Revenue Decline as Subscriber Losses Deepen
Analyst Ratings Changes
A number of brokerages recently issued reports on PTON. The Goldman Sachs Group increased their target price on Peloton Interactive from $7.00 to $8.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Wall Street Zen upgraded shares of Peloton Interactive from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th. UBS Group restated a “buy” rating on shares of Peloton Interactive in a report on Monday, June 15th. Telsey Advisory Group reissued a “market perform” rating on shares of Peloton Interactive in a research report on Monday, August 3rd. Finally, Weiss Ratings upgraded shares of Peloton Interactive from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, May 26th. Five analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Peloton Interactive has a consensus rating of “Hold” and a consensus target price of $7.94.
View Our Latest Stock Report on Peloton Interactive
Insider Buying and Selling
In other Peloton Interactive news, insider Dion C. Sanders sold 112,523 shares of the stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $5.19, for a total transaction of $583,994.37. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Saqib Baig sold 29,075 shares of the business’s stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $5.27, for a total value of $153,225.25. Following the transaction, the chief financial officer owned 250,019 shares of the company’s stock, valued at approximately $1,317,600.13. The trade was a 10.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 160,769 shares of company stock valued at $844,525 over the last three months. Insiders own 1.30% of the company’s stock.
Hedge Funds Weigh In On Peloton Interactive
A number of hedge funds and other institutional investors have recently bought and sold shares of PTON. Vident Advisory LLC increased its stake in Peloton Interactive by 1.1% in the 2nd quarter. Vident Advisory LLC now owns 110,258 shares of the company’s stock worth $765,000 after buying an additional 1,180 shares in the last quarter. Cresset Asset Management LLC lifted its position in shares of Peloton Interactive by 11.9% in the third quarter. Cresset Asset Management LLC now owns 12,748 shares of the company’s stock valued at $115,000 after acquiring an additional 1,354 shares in the last quarter. Vise Technologies Inc. boosted its stake in shares of Peloton Interactive by 10.3% in the third quarter. Vise Technologies Inc. now owns 15,680 shares of the company’s stock worth $141,000 after acquiring an additional 1,466 shares during the period. Osaic Holdings Inc. boosted its stake in shares of Peloton Interactive by 4.3% in the second quarter. Osaic Holdings Inc. now owns 59,883 shares of the company’s stock worth $416,000 after acquiring an additional 2,472 shares during the period. Finally, Mercer Global Advisors Inc. ADV grew its position in shares of Peloton Interactive by 21.8% during the third quarter. Mercer Global Advisors Inc. ADV now owns 17,257 shares of the company’s stock worth $155,000 after purchasing an additional 3,087 shares in the last quarter. Hedge funds and other institutional investors own 77.01% of the company’s stock.
About Peloton Interactive
Peloton Interactive, Inc operates a digital fitness platform that combines connected exercise equipment with live and on-demand workout classes. The company’s core products include stationary bikes (Peloton Bike and Bike+), treadmills (Peloton Tread and Tread+), and the Peloton Row. Each device integrates a touchscreen display that streams instructor-led cycling, running, strength, yoga, meditation and other fitness classes. Peloton generates recurring revenue through subscription plans, which grant users access to its growing library of workouts, performance tracking tools and community features.
Founded in 2012 by John Foley and headquartered in New York City, Peloton set out to deliver an immersive home-fitness experience by blending hardware, software and content.
Read More
- Five stocks we like better than Peloton Interactive
- Quantum Earnings Week: Winners and Losers Are Finally Emerging
- Axon’s Post-Earnings Pullback May Be More About Valuation Than Growth
- Uber Stock Lags in 2026, But Cash Flow and AV Bets Fuel Upside
- AppLovin Stock Hits 52-Week Low as Analysts Trim Targets, Stay Bullish
Receive News & Ratings for Peloton Interactive Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Peloton Interactive and related companies with MarketBeat.com's FREE daily email newsletter.
