Peloton Announces Q3 FY2026 Financial Results Delivered Year-over-Year Revenue Growth and Increases Expectation for Full Year FY26 Revenue and Free Cash Flow (Form 8-K)

Peloton Announces Q3 FY2026 Financial Results

Delivered Year-over-Year Revenue Growth and Increases Expectation for Full Year FY26 Revenue and Free Cash Flow*

Net Income was $26 million. Adjusted EBITDA* was $126 million, an increase of 41% year-over-year.

Net Debt* was $173 million, a reduction of 70% year-over-year.

NEW YORK, NY - May 7, 2026 - Peloton Interactive, Inc. today reported financial results for the quarter ended March 31, 2026.

Q3 FY2026 Financial Highlights

•Total Revenue was $631 million, an increase of $7 million or 1% year-over-year and $6 million above our guidance range, primarily driven by outperformance in Connected Fitness equipment sales across both Peloton and Precor brands.

•Ending Paid Connected Fitness Subscriptions were 2.662 million, a decrease of 218,000 or 7.6% year-over-year and in line with the midpoint of our guidance range.

•Total Gross Margin was 51.9%, an increase of 90 bps year-over-year and 210 bps below our guidance due to opportunistic promotional activity in the quarter. Total Gross Profit was $327 million, an increase of $9 million or 3% year-over-year.

•GAAP Net income was $26 million. Adjusted EBITDA* was $126 million, an increase of $37 million or 41% year-over-year and within our guidance range.

•GAAP Net Cash provided by operating activities was $153 million. Free Cash Flow* was $151 million, an increase of $56 million or 59% year-over-year.

•GAAP Total Debt was $1.299 billion. Net Debt* was $173 million, a decrease of $412 million or 70% year-over-year.

"In Q3 we made great progress on deepening our relationships with our Members, growing our opportunities to reach new Members globally, diversifying our revenue streams, and planting new seeds for future growth. At the same time we continue to strengthen our financial foundation, highlighted by revenue growth, a significant increase in Adjusted EBITDA, and a dramatic reduction in Net Debt," said Peloton's CEO & President, Peter Stern. "With the announcement of the Peloton Commercial Series and the recent launch of our global Spotify partnership, we are accelerating our evolution into a comprehensive, global wellness ecosystem."

Recent Business Highlights

•Announced the Commercial Series Tread and Bike, the first Peloton-branded heavy-duty equipment intended for high-use Commercial environments. Commercial Business Unit Revenue grew 14% year-over-year in Q3.

•Launched a content licensing partnership with Spotify in April, distributing Peloton content to Spotify Premium Members in most countries where Spotify is available.

•Pilates workouts increased 48% year-over-year in Q3, in part driven by Rebecca Kennedy's HiLit Training Plan. 400,000 Members engaged with this plan in Q3.

•Released Andy Speer's 5-day Advanced Split, produced in German and Spanish, our first AI-dubbed programs which will enable us to efficiently scale future global expansion.

Outlook

Below is our outlook for Full Year fiscal 2026. We intend to provide further details on our outlook during today's earnings conference call.

Full Year FY26 Outlook

•Total Revenue outlook of $2.42 billion to $2.44 billion, representing a decrease of $61 million or 2% year-over-year at the midpoint and an increase to the midpoint of our guidance range provided last quarter.

•Total Gross Margin outlook of approximately 52.5%, reflecting an increase of 160 bps year-over-year and a 50 bps decrease to our outlook provided last quarter.

•Adjusted EBITDA outlook of $470 million to $480 million, representing an increase of $71 million or 18% year-over-year at the midpoint and in-line with our outlook provided last quarter.

•Free Cash Flow expected to be in the vicinity of $350 million, an increase of $75 million from our minimum target provided last quarter.

•Ending Paid Connected Fitness Subscriptions is expected to be in the range of 2.55 million to 2.57 million, representing a decrease of 240,000 or 8.6% year-over-year at the midpoint.

			As Reported						FY26 Range												% Change (Midpoint)
Financial Results (dollars in millions)			FY25						Low						High						Y/Y
Total Revenue			$2,490.8						$2,420.0						$2,440.0						(2)%
Total Gross Margin (1)			50.9%						~52.5%												160 bps
Adjusted EBITDA (2)			$403.6						$470.0						$480.0						18%
Free Cash Flow (3)			$323.7						~$350.0												8%
User Metrics (in millions)
Ending Paid Connected Fitness Subscriptions			2.800						2.550						2.570						(8.6)%

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(1) Beginning in the first quarter of 2026, the Company now assigns executive compensation and other corporate overhead costs associated with our corporate facilities to the various expense captions that these costs relate to. As a result, FY26 Total Gross Margin guidance is inclusive of assigned overhead costs and is not comparable to prior periods. Additionally the Company changed its measure of segment profitability to Segment Adjusted Gross profit, defined as Revenue less Adjusted Cost of revenue incurred by the segment, which is inclusive of allocated overhead costs, for all periods presented. For a reconciliation of Total Gross Margin for FY25 to the revised amount inclusive of allocated overhead costs, refer to the reconciliation tables in the section titled "Change in Segment Measure of Profitability."

(2) Please see the section titled "Non-GAAP Financial Measures-Adjusted EBITDA" for a reconciliation of Net loss to Adjusted EBITDA for FY25 and an explanation of why we consider Adjusted EBITDA to be a helpful measure for investors. A reconciliation of Adjusted EBITDA guidance to the most directly comparable GAAP financial measures cannot be provided without unreasonable efforts.

(3) Please see the section titled "Non-GAAP Financial Measures-Free Cash Flow" for a reconciliation of Net cash provided by operating activities to Free Cash Flow for FY25 and an explanation of why we consider Free Cash Flow to be a helpful measure for investors. A reconciliation of Free Cash Flow guidance to the most directly comparable GAAP financial measures cannot be provided without unreasonable efforts.

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Q3 FY2026 Operating Metrics and Financial Summary

																					% Change
User Metrics			Q3 FY25						Q2 FY26						Q3 FY26						Y/Y						Q/Q
Members (in millions) (1)			6.1						5.8						5.8						(5)		%				(1)		%
Ending Paid Connected Fitness Subscriptions (in millions) (1)			2.880						2.661						2.662						(8)		%				0		%
Average Net Monthly Paid Connected Fitness Subscription Churn (1)			1.2		%				1.9		%				1.2		%				(10) bps						(70) bps
Ending Paid App Subscriptions (in millions) (1)			0.573						0.522						0.522						(9)		%				0		%
Financial Results (dollars in millions)
Connected Fitness Products Revenue			$	205.5					$	243.9					$	202.9					(1)		%				(17)		%
Subscription Revenue			418.5						412.6						428.0						2		%				4		%
Total Revenue			$	624.0					$	656.5					$	630.9					1		%				(4)		%
Connected Fitness Products Gross Profit			$	29.3					$	34.0					$	22.9					(22)		%				(33)		%
Connected Fitness Products Gross Margin			14.3		%				13.9		%				11.3		%				(300) bps						(260) bps
Subscription Gross Profit			$	288.8					$	297.3					$	304.3					5		%				2		%
Subscription Gross Margin			69.0		%				72.1		%				71.1		%				210 bps						(100) bps
Subscription Contribution Margin (2)			72.9		%				75.9		%				74.4		%				150 bps						(160) bps
Total Gross Profit			$	318.1					$	331.3					$	327.3					3		%				(1)		%
Total Gross Margin			51.0		%				50.5		%				51.9		%				90 bps						140 bps
Total Operating Expenses			$	350.5					$	345.6					$	274.8					(22)		%				(20)		%
Net (Loss) Income			$	(47.7)					$	(38.8)					$	26.4					155		%				168		%
Adjusted EBITDA (2)			$	89.4					$	81.4					$	126.2					41		%				55		%
Net Cash Provided by Operating Activities			$	96.7					$	71.9					$	152.7					58		%				113		%
Free Cash Flow (2)			$	94.7					$	71.0					$	150.5					59		%				112		%

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(1) For further information on these user metrics, please refer to the section titled "User Metrics Definitions."

(2) For a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure, please refer to the reconciliation tables in the section titled "Non-GAAP Financial Measures."

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Webcast and Conference Call Information

We will host a live call at 8:30 a.m. ET on Thursday, May 7, 2026 to discuss our financial results. To avoid delays, we encourage participants to register at least 15 minutes before the start of the call. A live webcast of the call and our earnings presentation will be available at https://investor.onepeloton.com/news-and-events/events, and a replay will be available on the investor relations page of our website for 30 days.