Peloton Interactive (2ON) AI Stock Analysis

Company Guidance

Peloton maintained its full year fiscal 2027 total revenue outlook of $2.3 billion to $2.4 billion, reflecting a decrease of approximately 4% year-over-year at the midpoint, and expects Q2 total revenue of $625 million to $650 million, a decrease of approximately 3% year-over-year at the midpoint and an increase of approximately 14% quarter-over-quarter; full year fiscal 2027 total gross margin is expected to be approximately 54%, an increase of 140 basis points year-over-year, with Q2 total gross margin expected to be approximately 50%; full fiscal year 2027 adjusted EBITDA guidance remains $475 million to $525 million, reflecting an increase of approximately 7% year-over-year at the midpoint, while Q2 adjusted EBITDA is expected to be $85 million to $100 million, an increase of 14% year-over-year at the midpoint; Q2 Ending Paid Connected Fitness Subscriptions are expected to be 2.425 million to 2.445 million, a decrease of approximately 8.5% year-over-year at the midpoint; net churn is expected to be roughly flat year-over-year for full year fiscal 2027, with year-over-year net churn expected to improve meaningfully in Q2 and subsequently increase year-over-year in Q3; and the full year fiscal 2027 minimum free cash flow target remains at least $350 million.