Peloton Interactive, Inc. reported that total revenue for the 2026 first quarter amounted to $631 million, an increase of $7 million or 1 percent year-over-year (y/y). The company said the number came in $6 million above its guidance range, primarily driven by outperformance in Connected Fitness equipment sales across both Peloton and Precor brands.

Paid Connected Fitness Subscriptions at quarter-end were 2.662 million, a decrease of 218,000, or 7.6 percent, y/y, said to be “in line” with the midpoint of the guidance range.

Total gross margin was 51.9 percent in Q1, an increase of 90 basis points y/y and 210 basis points below guidance due to opportunistic promotional activity in the quarter. Total Gross Profit was $327 million, an increase of $9 million, or 3 percent, year-over-year.

GAAP net income was $26 million. Adjusted EBITDA* was $126 million, an increase of $37 million, or 41 percent, y/y and within 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 percent y/y.

GAAP total debt was $1.299 billion. Net Debt* was $173 million, a decrease of $412 million or 70 percent y/y.

“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 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.”

Fiscal 2026 Full Year Outlook

  • Total revenue outlook of $2.42 billion to $2.44 billion, representing a decrease of $61 million, or 2 percent, y/y at the midpoint and an increase to the midpoint of guidance range provided last quarter.
  • Total gross margin outlook of approximately 52.5 percent, reflecting an increase of 160 basis points y/y and a 50 basis-point decrease to the company’s outlook provided last quarter.
  • Adjusted EBITDA outlook of $470 million to $480 million, representing an increase of $71 million, or 18 percent, y/y 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.
  • Paid Connected Fitness Subscriptions at year-end is expected to be in the range of 2.55 million to 2.57 million, representing a decrease of 240,000, or 8.6 percent, y/y at the midpoint.