Connected fitness platform Peloton beats Q1 revenue estimates

Peloton Interactive

06/11/2025 21:13

Overview

Peloton Q1 FY2026 revenue falls 6% yr/yr but beats guidance

Net income rises to $14 mln, up $15 mln yr/yr

Adjusted EBITDA increases 2% yr/yr, $18 mln above guidance

Outlook

Peloton expects Q2 revenue between $665 mln and $685 mln

Company projects Q2 gross margin at approximately 49.0%

Peloton forecasts full-year revenue of $2.4 bln to $2.5 bln

Company raises full-year adjusted EBITDA outlook to $425 mln to $475 mln

Peloton increases full-year free cash flow target to a minimum of $250 mln

Result Drivers

INVENTORY COSTS - Gross margin impacted by $13.5 mln accrual for Bike+ seat post inventory costs

SUBSCRIPTION DECLINE - Ending paid connected fitness subscriptions decreased by 164,000 yr/yr

NEW PRODUCT LAUNCHES - Launched Peloton Cross Training Series and Peloton IQ to drive future growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$551 mln
$539.82 mln (15 Analysts)
Q1 EPS
$0.03
Q1 Gross Margin
51.50%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the recreational products peer group is "buy"

Wall Street's median 12-month price target for Peloton Interactive Inc is $9.86, about 27.7% above its November 5 closing price of $7.13

Press Release: ID:nGNXGP59

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)