What is the revenue and EPS growth rate for Peloton Interactive year over year?

What were the key takeaways from Peloton Interactive's earnings call?

What is Peloton Interactive's gross profit margin?

What were the key takeaways from Peloton Interactive’s earnings call?

What is Peloton Interactive's latest dividend and current dividend yield?

What factors drove the changes in Peloton Interactive's revenue and profit?

Did Peloton Interactive beat or miss consensus estimates last quarter?

What guidance did Peloton Interactive's management provide for the next earnings period?

- **Connected Wellness Strategy**: 39% EBITDA growth YoY driven by Cross Training Series and Peloton IQ adoption, with 46% member engagement in personalized plans.
- **Financial Resilience**: Gross margin expanded to 50.5%, net debt reduced by 52%, and free cash flow of $71 million despite revenue headwinds.
- **Commercial Growth**: 10% YoY revenue increase in Commercial business unit, with Peloton Pro Series and Precor partnerships expanding market reach.
- **Cost Efficiency**: Operating expenses down 7% YoY, enabling $275 million+ free cash flow target for FY26.

**【CEO Summary Section】**
- Peloton is transitioning to a Connected Wellness company, focusing on health span through AI-driven personalization. The Cross Training Series launch in Q2 drove 39% adjusted EBITDA growth year-over-year.
- Subscription retention remained strong, with churn at 1.9% despite a price increase, reflecting high member value perception.
- Challenges included lower-than-expected upgrades from existing members, though new member sales met expectations. Peloton IQ adoption was strong, with 46% of active members engaging in the first quarter.
- Commercial business unit revenue grew 10% YoY, supported by partnerships like Hyatt and Hilton, and the launch of Peloton Pro Series for hotels.

**【CFO Financial Commentary】**
- Q2 revenue of $657 million missed guidance by $8 million due to delayed deliveries and lower third-party retail sales. Subscription revenue decreased 2% YoY, while Connected Fitness products revenue declined 3% YoY.
- Total gross margin improved to 50.5% (up 320bps YoY), driven by higher Subscription gross margin and reduced music royalties. Operating expenses decreased 7% YoY to $320 million.
- Free cash flow was $71 million, with net debt reduced by 52% YoY to $319 million. FY26 guidance updated to $2.40-2.44 billion revenue, 53% gross margin, and $450-500 million EBITDA.

**【Q&A Highlights】**
- Commercial business unit growth is a key driver, with 10% YoY revenue increase and plans to expand into new markets. Peloton Pro Series and Precor partnerships are enhancing commercial presence.
- Peloton IQ is a differentiator, with 46% member engagement and ranked top AI fitness coach by The Wall Street Journal. Future expansion into mental health and nutrition is planned.
- Despite challenges in existing member upgrades, the company remains confident in new product adoption and cost optimization, aiming for positive full-year operating income in FY26.

Peloton Interactive, Inc. (PTON) Q2 2026 Earnings Call Transcript

- **Product Recall Management**: $13.5M charge for Bike+ seat post recall, with minimal revenue impact and replacement parts available. 
- **New Product Momentum**: Cross Training Series and Peloton IQ launch driving 23% Q2 revenue growth, 500K+ Club Peloton adoption. 
- **Financial Resilience**: $67M Q1 free cash flow vs. prior negative guidance, full year EBITDA $425-475M. 
- **Commercial Expansion**: Precor partnership targeting 60+ countries, Q2 gross margin 49% (down 250bps QoQ). 
- **Churn Stability**: Annual churn flat YoY despite Q2 2% increase, 50% team engagement growth. 
- **Long-Term Targets**: 20%+ Connected Fitness gross margin, $250M+ free cash flow. 
- **Debt Optimization**: Gross leverage 3.8x (down 13.5pts YoY), $1.1B cash on hand. 
- **Tariff Benefits**: $45M+ free cash flow from lower tariffs. 
- **AI Differentiation**: Peloton IQ adoption driving 50%+ strength workout growth. 
- **Wellness Expansion**: Breathwrk, HSS partnerships, menopause research. 
- **Liquidity**: $200M convertible notes due Feb 2026, $1B term loan refinancing consideration.

**【CEO Summary Section】**
- Announced voluntary recall of 833,000 Original Series Bike+ units due to 3 reported incidents, with replacement seat posts available. 
- Launched new Cross Training Series equipment featuring advanced AI-powered Peloton IQ, which provides personalized workout recommendations and form correction. 
- Expanded wellness offerings with acquisition of Breathwrk app for breathing exercises and partnership with Hospital for Special Surgery for injury prevention classes. 
- Introduced Club Peloton loyalty program, with over 500,000 members participating and 50% increase in team engagement. 
- Expanded commercial business unit with Precor partnership, offering commercial-grade equipment with Peloton software. 
- Projected Q2 revenue growth of 23% YoY, driven by holiday season hardware sales and new product launches. 

**【CFO Financial Commentary】**
- Q1 revenue $551M (vs. guidance $545M), with Connected Fitness products revenue $152M (down 5% YoY due to recall-related costs). 
- Gross margin 51.5% (down 300bps YoY) due to $13.5M recall-related inventory charge. 
- Free cash flow $67M (vs. prior expectation of negative), driven by lower tariffs and cost savings. 
- Full year 2026 guidance: Revenue $2.4-2.5B, EBITDA $425-475M, free cash flow ≥$250M. 
- Q2 gross margin expected 49% (down 250bps QoQ due to seasonal product mix). 

**【Q&A Highlights】**
- Recall financial impact: $16.5M total accrual, with minimal revenue impact as affected units no longer sold. 
- Churn rate 1.6% Q1 (down 20bps YoY), with Q2 expected 2% YoY increase due to price hikes but flat annual churn. 
- Commercial business unit targeting 2x-4x EBITDA leverage ratio, with focus on Peloton-Pro hybrid solutions. 
- New product gross margin target 20%+ long-term, with Q2 Connected Fitness margin improvement to 15.8% (up 660bps YoY).

Peloton Interactive, Inc. (PTON) Q1 2026 Earnings Call Transcript

- **Strategic Shift to Wellness**: Peloton pivots from fitness to holistic health, targeting 17M U.S. households with >$75k income.
- **Financial Strength**: FY25 free cash flow $324M, net debt down 43%, with FY26 EBITDA guidance $400M-$450M.
- **Cost Efficiency**: $100M savings plan (half achieved), SBC down 25% YoY, gross margin +140bps YoY.
- **Growth Drivers**: Micro stores, used equipment platform, military/student discounts, and commercial partnerships.

**【Management Opening Remarks】**
- CEO Peter Stern emphasized exceeding key financial goals for Q4 and FY2025, highlighting operational achievements and innovation in equipment, software, and human coaching.
- New leadership hires include CMO Megan Imbres (Apple), CCO Dianna Kraus (Fleishman Hillard), and CIO Corey Farrell (Pearson), supporting strategic transformation.

**【CEO Strategic Vision】**
- Transitioning from cardio fitness partner to global wellness leader, addressing healthspan through strength, mental well-being, sleep, and nutrition.
- Expansion initiatives: micro stores (8 new by holiday), Peloton Repowered used equipment platform, military/student discounts, and Precor commercial partnerships.
- Cost optimization: $100M annualized run rate savings by FY26, including $15M from reduced stock-based compensation.

**【CFO Financial Highlights】**
- Q4 revenue: $607M (vs. guidance high by $21M), driven by Connected Fitness hardware sales.
- Gross margin: 54.1% (560bps YoY improvement), with Connected Fitness at 17.3% and Subscription at 71.9%.
- Free cash flow: $112M (YoY +86%), reducing net debt by $343M (43% YoY).
- FY26 guidance: Revenue $2.4B-$2.5B (-2% midpoint), gross margin ~51%, adjusted EBITDA $400M-$450M (+5% YoY).

**【Q&A Key Themes】**
- **Growth Strategy**: Younger demographics adopting holistic wellness; student discounts and Strength+ app driving engagement.
- **Cost Management**: SBC reduction ($77M YoY in FY25) and $100M savings plan (half achieved, rest via indirect spend and workforce relocation).
- **Revenue Outlook**: Q1 down 9% YoY, inflecting to growth in Q2-Q4; tariff exposure ~$65M FY26.
- **Commercial Expansion**: Precor-Peloton combo targeting 100,000+ facilities, with Hilton/Hyatt partnerships as models.


Peloton Interactive, Inc. (PTON) Q4 2025 Earnings Call Transcript

- **Q3 Growth**: 2.88M Paid Connected Fitness subs (+5,000 QoQ), 1.2% net churn, $624M revenue (+$9M vs. guidance).\n- **Strategic Wins**: 500K+ Personalized Plans users, 1,000+ new members via UT Austin gym, 100K+ Team Feed groups.\n- **Cost Efficiency**: $200M+ savings tracked, 23% YoY opex reduction, $914M cash on hand.\n- **AI Impact**: 100+ classes/day translated via AI, improved member support MSAT scores.\n- **FY25 Guidance**: $250M free cash flow, narrowed subs range to 2.77-2.79M.\n- **Expansion Strategy**: Focus on existing markets (UK, Canada, Germany) before new country entries.\n

**【CEO Strategic Overview】**
- **Q3 Performance Highlights**: Ended with 2.88M Paid Connected Fitness subscriptions (up 5,000 QoQ), 1.2% net churn (stable YoY), and $624M total revenue (+$9M vs. midpoint guidance).\n- **Strategic Pillars**:\n  1. **Enhance Member Outcomes**: Launched Personalized Plans (500K+ users), improved Tread Pace Targets adoption (80% Q3 vs. 60% prior), and expanded strength content (70K+ kettlebell workouts).\n  2. **Expand Market Presence**: Tested micro-stores (10x smaller footprint, higher revenue), opened UT Austin gym (1,000+ new members), and piloted Precor gym integrations.\n  3. **Foster Lifetime Membership**: Introduced Team Feed (100K+ teams) and improved service MSAT scores (4.5% Q3 vs. 4.3% prior).\n  4. **Operational Excellence**: Tracked $200M+ cost savings (vs. $105M YoY opex reduction), hired COO Charles Kirol for supply chain optimization, and elevated Dion Camp Sanders as CCO for global expansion.\n- **AI Integration**: Used AI for instructor translation (3,300+ classes/month), personalized plans, and member support efficiency.\n
**【CFO Financial Breakdown】**\n- **Revenue**:\n  - Connected Fitness Products: $205M (-27% YoY, driven by hardware sales decline).\n  - Subscription: $419M (-4% YoY, offset by used equipment activation fees).\n  - Total Gross Margin: 51% (+780bps YoY, driven by subscription mix).\n- **Cost Efficiency**:\n  - Opex: $351M (-23% YoY, $106M marketing spend -37% YoY).\n  - R&D: $60M (-22% YoY).\n- **Profitability**:\n  - Adjusted EBITDA: $89M (+$84M YoY).\n  - Free Cash Flow: $95M Q3, $211M YTD.\n  - Net Debt: $585M (-35% YoY).\n- **FY25 Guidance Update**:\n  - Ending Subs: 2.77-2.79M (narrowed range).\n  - Revenue: $2.455-2.47B (+$8M midpoint).\n  - EBITDA: $330-350M (+$15M midpoint).\n  - Free Cash Flow: ~$250M (tariff headwind ~$5M Q4).\n
**【Q&A Key Takeaways】**\n- **AI & Innovation**: AI-powered translation enables 100+ classes/day in 3 languages; Personalized Plans now used by 500K+ members.\n- **International Expansion**: Focused on scaling in existing markets (UK, Canada, Germany) before new country entries.\n- **Macroeconomic Resilience**: Subscription business (67% of revenue) shows strong retention; hardware sales offset by refurbished/rental options.\n- **Pricing Strategy**: Last subscription price increase in 2022; evaluating future adjustments.\n- **Leadership Changes**: COO & CCO hires target supply chain efficiency and global growth; CIO/CMO searches ongoing.\n- **FY26 Outlook**: Free cash flow expected to remain positive, driven by operational discipline and reduced working capital needs.\n

Peloton Interactive (PTON)-8 May 25-2025 Q3 Earnings call transcript

- **Revenue Resilience**: Q2 FY25 revenue of $674M, with Connected Fitness subscriptions up 19,000 vs. guidance, driven by 1.4% churn (50bps QoQ improvement).
- **Gross Margin Milestone**: Connected Fitness products gross margin hits 12.9%, highest in 3 years, enabled by premium product mix and disciplined promotions.
- **Cost Efficiency**: $200M+ annualized cost savings on track, reducing OpEx by 25% YoY and net debt by 30% YoY to $1.1B.
- **Free Cash Flow Surge**: Q2 FCF of $100M (vs. -$43M YoY), with FY25 target raised to $200M+.
- **Innovation Focus**: Strength+ app adoption (220K MAU) and Tread+ sales growth highlight strategic bets on multi-discipline engagement and premium hardware.


**【CEO Summary Section】**
- Peloton achieved Q2 FY25 revenue of $674M, with Connected Fitness subscriptions at 2.88M, exceeding guidance by 19,000. Gross margin for Connected Fitness products reached 12.9%, the highest in 3 years.
- Emphasis on innovation in strength training (e.g., Strength+ app with 220K monthly users) and Tread portfolio sales, which grew 50% YoY. Pace targets feature improved member engagement, with 60% of Tread users using the feature.
- Cost optimization efforts reduced OpEx by 25% YoY, with $200M+ annualized savings on track. Net debt decreased 30% YoY to $1.1B.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $58M (vs. -$82M YoY), up $140M YoY. Free cash flow of $100M (QoQ +$95M, YoY +$143M), with FY25 target raised to $200M+.
- Subscription gross margin improved to 6.9%, driven by higher retention (1.4% churn, 50bps QoQ improvement). Connected Fitness products revenue exceeded expectations due to Tread+ sales and refurbished bike demand.
- FY25 guidance updated: subscriptions to 2.85-2.87M, revenue $2.43-2.48B, gross margin 50%, and EBITDA $300-350M.

**【Q&A Highlights】**
- **Growth vs. Profitability**: CEO prioritizes financial discipline (EBITDA and FCF) before reinvesting in growth. Levers include product innovation (e.g., personalized coaching), expanding into new channels (e.g., third-party retail), and deepening member engagement.
- **Tariffs Impact**: Minimal risk as no Peloton hardware is subject to China tariffs. Potential 1% impact on apparel if Mexico/Canada tariffs resume.
- **Churn Improvement**: Driven by better member support (4.3/5 satisfaction) and engagement (60% lower churn for multi-discipline users). FY25 expects modest churn increase due to secondary market mix shift.
- **Pricing Strategy**: Disciplined approach with Q1 price increases for international bikes and rowers. Evaluating subscription pricing with fresh eyes post-restructuring.
- **Cost Optimization**: IT automation, real estate consolidation, and media spend reduction (down 38% YoY) are key areas for further savings.


Actual			-0.2	0.27	0.2	0.18	-0.03	-1.05	-1.25	-1.39	-2.27	-3.68	-1.2	-0.98	-0.79	-0.68	-0.44	-0.54	-0.45	-0.08	0	-0.24	-0.12	0.05	0.03	-0.09
Forecast			-0.1794	0.0991	0.1142	0.0814	-0.1199	-0.4423	-1.1018	-1.2086	-0.8381	-0.7614	-0.6653	-0.6554	-0.4797	-0.4096	-0.335	-0.5355	-0.3583	-0.1673	-0.1519	-0.1965	-0.0695	-0.0683	0.0114	-0.0529
Surprise	0.00%	0.00%	-11.48%	+172.45%	+75.13%	+121.13%	+74.98%	-137.40%	-13.45%	-15.01%	-170.85%	-383.32%	-80.37%	-49.53%	-64.69%	-66.02%	-31.34%	-0.84%	-25.59%	+52.18%	+100.00%	-22.14%	-72.66%	+173.21%	+163.16%	-70.13%

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PTON Q2 2026 Earnings

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PTON

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PTON Q2 2026 Earnings

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