The FY27 revenue guidance decline (-3.9% YoY at midpoint) signals continued hardware contraction, but the subscription business (7% YoY growth, 73.6% gross margin) and strong FCF generation provide a floor. Watch Q1 FY27 subscription churn (2.2% in Q4, up 40bps YoY) and whether the doubling of microstores can stabilize equipment revenue. The 0.3x net leverage ratio gives balance sheet flexibility for buybacks or M&A.
Price Chart
Executive Summary
Peloton reported Q4 FY2026 revenue of $607.7M (flat YoY, +$1M) and GAAP diluted EPS of $0.13, beating consensus estimates of $0.12 by 6.2%. Full-year FY26 GAAP net income was $63.2M (first full year of profitability), and Adjusted EBITDA grew 16% YoY to $468.2M. However, FY27 revenue guidance of $2.3B-$2.4B implies a 3.9% YoY decline at the midpoint, and Connected Fitness Product revenue fell 14% YoY in Q4, signaling ongoing hardware headwinds that offset subscription strength.
Key Financial Metrics
Key Facts
- Q4 FY2026 total revenue $607.7M, up $1M YoY (flat)
- GAAP diluted EPS $0.13 vs consensus $0.12 (6.2% beat)
- Full-year FY26 GAAP net income $63.2M — first full year of profitability
- Full-year FY26 Adjusted EBITDA $468.2M, up 16% YoY
- Full-year FY26 Free Cash Flow $377.6M, up 17% YoY
- Q4 Connected Fitness Product revenue $171.1M, down 14% YoY
- Q4 Subscription revenue $436.6M, up 7% YoY; Subscription Gross Margin 73.6%
- Ending Paid Connected Fitness Subscriptions 2.553M, down 8.8% YoY
- FY27 revenue guidance $2.3B-$2.4B, implying 3.9% decline at midpoint
- FY27 Adjusted EBITDA guidance $475M-$525M, up 6.8% at midpoint
- Net Debt reduced 80% YoY to $92.6M; Net Leverage Ratio 0.3x
Financial Impact
Q4 revenue $607.7M (flat YoY); FY27 revenue guidance implies ~3.9% decline at midpoint; FY27 Adjusted EBITDA guided $475M-$525M (+6.8% YoY at midpoint)
Risk Factors
- FY27 revenue guidance implies continued top-line contraction (-3.9% YoY)
- Connected Fitness Product revenue declined 14% YoY in Q4, hardware headwinds persist
- Paid Connected Fitness Subscriptions down 8.8% YoY; churn increased to 2.2% in Q4
- $23.8M nonrecurring legal contingency in Q4 related to patent litigation
- FY27 FCF target of at least $350M is below FY26 actual of $377.6M
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001639825-26-000032 |
| Document: pton-20260806.htm | 0001639825-26-000032 |
| Document: 0001639825-26-000032-index-headers.html | 0001639825-26-000032 |
| Document: 0001639825-26-000032-index.html | 0001639825-26-000032 |
| Document: 0001639825-26-000032.txt | 0001639825-26-000032 |
| 8-K Data (Synthetic) | 0001639825-26-000032 |
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