Earnings Releases·Nov 5, 2026, 6:59 AM ET

Peloton Interactive, Inc. — Q1 FY2027 Earnings Summary

Q1 FY2027 revenue reached $559 million (up 2% YoY), driven by a 42% YoY increase in Adjusted EBITDA to $168 million and a 113% YoY surge in free cash flow to $143 million, while gross margin expanded 975 basis points to 61.3%.
Full-year FY2027 guidance projects revenue of $2.30–$2.40 billion (down 4% YoY) and Adjusted EBITDA of $475–$525 million (up 7% YoY), with free cash flow expected to be at least $350 million.
The company significantly strengthened its balance sheet by reducing gross principal debt by nearly $500 million (32%) in 2026, resulting in a net debt position of negative $43.2 million and a net leverage ratio of 0.0x.
Subscription revenue grew 3% YoY to $410.7 million despite a 9% YoY decline in total paid connected fitness subscriptions to 2.475 million, while the Commercial Business Unit reported double-digit revenue growth.
Strategic initiatives include the launch of the new Tread Flex, expansion of Peloton IQ digital features, and the opening of ten additional microstores, bringing the total U.S. footprint to 19.