- Peloton posted its first annual net profit of $63.2 million for the year ended June 30, 2026, reversing a $118.9 million loss from the prior year.
- Fiscal 2026 revenue was reported at $2.446 billion, down from $2.491 billion the previous year.
- Paid connected fitness subscriptions fell 8.8% to 2.553 million, a decline of 247,000 from the prior year.
- Peloton expects fiscal 2027 revenue to be between $2.3 billion and $2.4 billion, indicating a drop of roughly 4%.
- Peloton stock slid about 13% in premarket trading following the disappointing revenue outlook.
- CEO Peter Stern described fiscal 2026 as a 'landmark' year, stating that 'Peloton sort of grew up.'
- Analyst expectations for fiscal 2027 revenue were around $2.42 billion, which Peloton's forecast did not meet.
- Despite the lower revenue outlook, Peloton projected adjusted EBITDA of $475 million to $525 million for fiscal 2027, up from $468.2 million in fiscal 2026.
- Peloton's commercial business unit revenue grew at a double-digit rate in fiscal 2026, and the company plans to double its microstore retail fleet in fiscal 2027.
Peloton's fiscal 2026 marked a significant milestone as the company achieved its first annual profit of $63.2 million, recovering from a $118.9 million loss the previous year. Despite this success, shares dropped 13% in premarket trading due to a disappointing revenue forecast for fiscal 2027.
The company anticipates revenue between $2.3 billion and $2.4 billion for fiscal 2027, which is a 4% decline from the $2.446 billion reported in fiscal 2026. This forecast fell short of analyst expectations of $2.42 billion, leading to investor concerns.8
In the fourth quarter ending June 30, Peloton reported a profit of $61.6 million, or 13 cents per diluted share, compared to $21.6 million, or 5 cents per share, a year earlier. Revenue for the quarter was $607.7 million, nearly flat from $606.9 million in the same period last year.
CEO Peter Stern described fiscal 2026 as a "landmark" year, stating, "This was the year where Peloton sort of grew up." However, he acknowledged challenges in subscriber growth, with paid connected fitness subscriptions declining by 247,000 to 2.553 million.3
Looking ahead, Peloton expects adjusted EBITDA to rise to between $475 million and $525 million and aims for a free cash flow target of at least $350 million in fiscal 2027, despite the anticipated revenue decline.
“The company expects adjusted EBITDA of $475 million to $525 million in fiscal 2027, up from $468.2 million, and targets at least $350 million in free cash flow. Paid connected fitness subscriptions fell 8.8% to 2.553 million, and CEO Peter Stern acknowledged net subscriber additions are not yet positive.”
qz.com
CNBC
