Peloton Interactive (NASDAQ:PTON) Announces Earnings Results, Beats Estimates By $0.02 EPS

Peloton Interactive (NASDAQ:PTON) issued its earnings results on Thursday. The company reported $0.13 EPS for the quarter, beating the consensus estimate of $0.11 by $0.02, FiscalAI reports. The firm had revenue of $607.70 million during the quarter, compared to the consensus estimate of $596.60 million. Peloton Interactive had a net margin of 2.58% and a negative return on equity of 23.92%. The business’s quarterly revenue was up .1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.05 earnings per share.

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

NASDAQ PTON traded up $0.17 during trading on Friday, reaching $5.68. 12,703,358 shares of the company’s stock were exchanged, compared to its average volume of 8,671,014. Peloton Interactive has a fifty-two week low of $3.65 and a fifty-two week high of $9.20. The business has a 50 day moving average price of $5.98 and a 200-day moving average price of $5.23. 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.

More Peloton Interactive News

Here are the key news stories impacting Peloton Interactive this week:

• 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

Several equities research analysts have issued reports on PTON shares. UBS Group restated a “buy” rating on shares of Peloton Interactive in a report on Monday, June 15th. Weiss Ratings upgraded Peloton Interactive from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, May 26th. The Goldman Sachs Group boosted their price objective on Peloton Interactive from $7.00 to $8.00 and gave the company a “buy” rating in a research report on Friday, May 8th. Telsey Advisory Group restated a “market perform” rating on shares of Peloton Interactive in a report on Monday, August 3rd. Finally, Wall Street Zen raised shares of Peloton Interactive from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th. Five research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Peloton Interactive currently has a consensus rating of “Hold” and an average price target of $7.94.

Insiders Place Their Bets

In other Peloton Interactive news, CFO Saqib Baig sold 29,075 shares of Peloton Interactive stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $5.27, for a total value of $153,225.25. Following the completion of the sale, the chief financial officer owned 250,019 shares in the company, valued at $1,317,600.13. The trade was a 10.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Dion C. Sanders sold 112,523 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $5.19, for a total value of $583,994.37. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 160,769 shares of company stock worth $844,525. Insiders own 1.30% of the company’s stock.

Hedge Funds Weigh In On Peloton Interactive

Hedge funds have recently bought and sold shares of the company. Advisory Services Network LLC bought a new stake in Peloton Interactive during the third quarter worth $48,000. Quarry LP acquired a new stake in shares of Peloton Interactive during the 3rd quarter valued at $71,000. Evolve Private Wealth LLC bought a new stake in Peloton Interactive during the 4th quarter worth $62,000. NewEdge Advisors LLC increased its holdings in Peloton Interactive by 575.2% in the 4th quarter. NewEdge Advisors LLC now owns 10,182 shares of the company’s stock worth $63,000 after purchasing an additional 8,674 shares in the last quarter. Finally, Occudo Quantitative Strategies LP acquired a new position in Peloton Interactive in the 2nd quarter worth about $74,000. 77.01% of the stock is owned by institutional investors.

Peloton Interactive Company Profile

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.