The profitability inflection and raised FCF guidance are positive, but subscriber declines and margin miss from promotional activity temper enthusiasm. Watch Q4 for sustained revenue growth and subscription churn trends. The stock may see a relief rally on the earnings beat, but long-term turnaround conviction requires stabilization of the subscriber base.
Price Chart
Executive Summary
Peloton reported Q3 FY2026 revenue of $631M (+1% YoY), above guidance midpoint, and GAAP net income of $26.4M (first positive since Q1 FY2025). Adjusted EBITDA rose 41% to $126.2M, and FY26 FCF guidance was raised to ~$350M. However, paid connected fitness subscriptions fell 7.6% YoY to 2.662M, and gross margin missed guidance by 210 bps due to promotional activity.
Key Financial Metrics
Key Facts
- Q3 FY2026 total revenue $631M, +1% YoY, $6M above guidance range midpoint.
- GAAP net income $26.4M vs loss of $47.7M in prior year; GAAP diluted EPS $0.06.
- Adjusted EBITDA $126.2M, +41% YoY, within guidance range.
- Paid Connected Fitness subscriptions 2.662M, down 7.6% YoY, in line with guidance midpoint.
- Subscription revenue $428M (+2% YoY); subscription gross margin 71.1% (+210 bps YoY).
- FY26 revenue guidance raised to $2.42B-$2.44B (midpoint $2.43B, down 2% YoY), EBITDA guidance maintained $470M-$480M, FCF raised to ~$350M.
- Free cash flow $150.5M in Q3, +59% YoY; operating cash flow $152.7M.
Financial Impact
Revenue slightly above guidance; net income positive for first time in six quarters; EBITDA and FCF strongly up.
Risk Factors
- Continued subscriber erosion (down 7.6% YoY) could pressure subscription revenue growth.
- Gross margin below guidance due to promotional pricing may persist.
- Connected Fitness Products revenue remains weak (-1% YoY) and subject to seasonality.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001639825-26-000018 |
| Document: pton-20260507.htm | 0001639825-26-000018 |
| Document: 0001639825-26-000018-index-headers.html | 0001639825-26-000018 |
| Document: 0001639825-26-000018-index.html | 0001639825-26-000018 |
| Document: 0001639825-26-000018.txt | 0001639825-26-000018 |
| 8-K Data (Synthetic) | 0001639825-26-000018 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 21, 2026 6w ago | Insider Cluster | $5.41 $4.95 | ▼ −8.50% | ▼ −7.98% | $4.97 (−8.23%) |
Aug 18, 2026 6w ago | Insider Cluster | $5.47 $4.90 | ▼ −10.42% | ▼ −8.47% | $4.97 (−9.23%) |
Aug 18, 2026 6w ago | Insider Cluster | $5.47 $4.90 | ▼ −10.42% | ▼ −8.47% | $4.97 (−9.23%) |
Aug 6, 2026 8w ago | 8-K | $5.51 $5.38 | ▼ −2.27% | ▼ −2.87% | $4.97 (−9.81%) |
Jun 11, 2026 16w ago | Institutional Cluster | $5.65 $5.94 | ▲ +5.13% | ▲ +3.24% | $4.97 (−12.12%) |
May 27, 2026 18w ago | Insider Cluster | $6.01 $5.71 | ▲ +4.96% | ▲ +2.27% | $4.97 (+17.36%) |
May 26, 2026 18w ago | 8-K | $5.73 $5.44 | ▼ −5.03% | ▼ −2.76% | $4.97 (−13.32%) |
May 21, 2026 19w ago | Insider Cluster | $5.70 $5.43 | ▼ −4.70% | ▼ −4.54% | $4.97 (−12.86%) |
May 7, 2026 21w ago | 8-K | $5.63 $6.00 | ▲ +6.61% | ▲ +3.47% | $4.97 (−11.78%) |
Apr 23, 2026 23w ago | Press Release | $5.16 $5.18 | ▲ +0.43% | ▼ −3.60% | $4.97 (−3.74%) |
US Market Status
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