Peloton Interactive ( (PTON) ) has released its Q1 earnings. Here is a breakdown of the information Peloton Interactive presented to its investors.
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Peloton Interactive, Inc. is a leading provider of connected fitness products and services, known for its innovative exercise equipment and subscription-based workout classes, operating primarily in the fitness and wellness industry.
Peloton’s latest earnings report for Q1 2026 highlights a net income of $14 million, marking a $15 million increase year-over-year, alongside an adjusted EBITDA of $118 million. The company also reported a free cash flow of $67 million, a significant $57 million increase from the previous year.
Despite a 6% year-over-year decline in total revenue to $551 million, Peloton exceeded its guidance range by $6 million. The company’s gross margin decreased slightly to 51.5%, impacted by inventory costs related to the Bike+ seat post. The number of paid connected fitness subscriptions fell by 6% to 2.732 million, though it still surpassed expectations. Recent strategic moves include launching a refreshed hardware portfolio and expanding retail partnerships, alongside the acquisition of wellness app Breathwrk.
Looking ahead, Peloton anticipates Q2 2026 revenue to range between $665 million and $685 million, with an expected gross margin of approximately 49%. The company aims for an adjusted EBITDA between $55 million and $75 million, reflecting an 11% increase year-over-year. Peloton remains focused on innovation and community growth, with management confident in achieving profitable growth and maintaining its leadership in the connected fitness market.