Earnings Data
Report Date
Aug 20, 2026Before Open (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
0.1Last Year’s EPS
0.04Same Quarter Last Year
Moderate Buy
Based on 13 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed material financial and operational progress: revenue exceeded guidance in Q3, profitability metrics (gross profit, adjusted EBITDA, free cash flow) improved significantly year-over-year, net debt was reduced dramatically and the company announced strategic initiatives (Spotify licensing, Commercial Series, expanded mental-wellbeing and strength focus). Near-term headwinds include expected Q4 subscription declines, promotions that compressed gross margin in Q3, dependence on non-subscriber revenue sources for growth and some channel underperformance. Taken together, the highlights — meaningful profitability gains, stronger balance sheet, clear cost discipline and diversified revenue initiatives — outweigh the near-term subscriber and margin challenges, resulting in a constructive outlook.Company Guidance
Revenue Beat and Positive Year-over-Year Growth
Q3 total revenue of $631 million, which exceeded guidance by $6 million and represented positive year-over-year growth.
Improved Profitability
Total gross profit of $327 million (+$9 million, +3% YoY); total gross margin 51.9% (+90 basis points YoY); adjusted EBITDA $126 million (+$37 million, +41% YoY); Q3 free cash flow $151 million (+$56 million, +59% YoY).
Stronger Balance Sheet
End-of-quarter cash position of $1.13 billion; net debt of $173 million, down $412 million or 70% year-over-year; gross and net leverage improved to 2.9 and 0.4, respectively.
Cost Discipline and Efficiency
Total operating expenses (ex restructuring and certain items) were $267 million, a decrease of $50 million or 16% YoY; on track for at least $100 million of run-rate cost savings by end of fiscal 2026; delivering in excess of $1 million of annualized revenue per employee.
Subscriber Metrics and Churn Improvement
Ending paid Connected Fitness subscriptions of 2.662 million (in line with midpoint guidance); average net monthly paid Connected Fitness subscription churn of 1.2%, an improvement of 7 basis points YoY.
Commercial Business Momentum
Commercial business unit revenue increased 14% year-over-year in Q3; announced Commercial Series bike and treadmill for heavy-traffic gym environments (available Q2 FY27) and noted only ~3% market share of a >$10 billion commercial fitness equipment market.
Content Licensing Partnership with Spotify
Signed content licensing partnership bringing ~1,400 Peloton classes to Spotify Premium subscribers globally, expected to add hundreds more classes monthly and provide a high-margin diversified revenue stream (revenue already reflected in guidance).
Product and Content Innovation
Pilates modality grew 48% driven by >400,000 participants in HiLit classes; expanded mental-wellbeing content with Breathwrk collaboration (140 instructor-led meditation and sleep classes plus daily programming); R&D progress on new hardware planned for fall.
Historic Profitability Outlook
Company expects to achieve positive net income for full fiscal 2026 (in addition to previously guided positive operating income), the first time in company history for either metric on a full-year basis.
Reduced Stock-based Compensation
Stock-based compensation expense decreased $15 million or 22% YoY in Q3 and management expects SBC to continue stepping down (from $300M FY24 to $230M FY25 to ~ $200M FY26 run-rate).
CH:2ON Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
FAQ
When does Peloton Interactive (CH:2ON) report earnings?
Peloton Interactive (CH:2ON) is schdueled to report earning on Aug 20, 2026, Before Open (Confirmed).
What is Peloton Interactive (CH:2ON) earnings time?
Peloton Interactive (CH:2ON) earnings time is at Aug 20, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is the P/E ratio of Peloton Interactive stock?
The P/E ratio of Peloton Interactive is N/A.
What is CH:2ON EPS forecast?
CH:2ON EPS forecast for the fiscal quarter 2026 (Q4) is 0.1.
