Peloton Interactive (PTON) Q1 2027 Earnings Report
MX:PTON Q1 2027 EPS Results
- Actual EPS
- MXN 3.56
- Consensus EPS
- MXN 2.00
- Beat/Miss
- Beat by +MXN 1.55
- One Year Ago EPS
- MXN 0.56
MX:PTON Q1 2027 Revenue Results
- Actual Revenue
- MXN 10.47B
- Expected Revenue
- MXN 10.36B
- Beat/Miss
- Beat by +MXN 107.58M
- YoY Revenue Growth
- +1.53%
Earnings Announcement Details
- Quarter
- Q1 2027
- Date
- 11/05/2026
- Time
- Before Open
- Conference Call
- Thursday, November 5, 2026
Peloton Interactive's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q1 2027 Earnings Call Audio
Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
The call had a strongly positive tone. Peloton reported better-than-expected Q1 revenue, profitability, cash flow, subscription performance and deleveraging, while highlighting product innovation, AI adoption, commercial expansion and international opportunity. The main challenges were year-over-year declines in full-year revenue and Q2 subscription guidance, churn that remains above the prior year, reliance on some nonrecurring Q1 benefits, seasonal holiday uncertainty and volatile credit markets. Highlights significantly outweighed lowlights.
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.
- Q1 Results Exceeded ExpectationsPeloton said Q1 results were ahead of expectations. Revenue exceeded the midpoint of guidance, subscriptions reached the top end of guidance, and gross margin and adjusted EBITDA substantially outperformed expectations.
- Third Consecutive Quarter of Revenue GrowthTotal revenue was $559 million, up $8 million or 2% year-over-year and $4 million above the midpoint of guidance, marking Peloton's third consecutive quarter of year-over-year revenue growth. The company said the increase was aided by subscription price changes implemented last year.
- Significant Gross Profit and Margin ExpansionTotal gross profit was $343 million, up $59 million or 21% year-over-year. Total gross margin was 61.3%, up 975 basis points year-over-year and 430 basis points above guidance of approximately 57%. Margin benefited from tariff favorability on Peloton and Precor products and lower recall costs.
- Adjusted EBITDA and Free Cash Flow StrengthAdjusted EBITDA was $168 million, approximately 30% of revenue, up $50 million or 42% year-over-year and $23 million above the high end of guidance. Q1 free cash flow was $143 million, or 26% of revenue, up $76 million or 113% year-over-year.
- Balance Sheet Deleveraging and Net Cash PositionPeloton ended the quarter with $1.34 billion of cash and equivalents, with cash exceeding total debt. The company made a $280 million voluntary term-loan prepayment on October 9, reducing the term loan to around $700 million. Including an approximately $200 million note repayment at maturity in February, gross debt was reduced by approximately one-third, or about $0.5 billion, in calendar 2026.
- Strong Subscription Base and Improving Churn TrendsEnding Paid Connected Fitness Subscriptions were 2.475 million, at the high end of guidance. Net churn was 1.7%; although it increased 11 basis points year-over-year, the year-over-year increase improved from 37 basis points in Q4. Management said one-time factors normalized and underlying churn improved, supporting its expectation of flat full-year churn versus fiscal 2026.
- Higher Engagement Across Multiple ModalitiesAverage monthly workouts per subscription grew year-over-year. Strength offerings increased their share of engagement, and Pilates workouts grew 53% year-over-year in Q1. Peloton said engagement across multiple modalities is correlated with better retention.
- New Tread Portfolio Addresses Price and Space BarriersPeloton launched Tread Flex, its first folding Tread, along with Peloton Tread Vision and Tread+ Vision. Management said the products address affordability, space, noise, computer-vision coaching and Sled mode needs, and that the three new Treads received acclaim from consumers and the press. Tread Flex is priced near $2,000, while the company said it launched a treadmill at $1,000 less than its prior base model.
- Expanded Product and AI InnovationPeloton launched its Commercial Series Bike and Tread and rolled out Peloton IQ updates, including run analysis, IQ pace targets and reruns of outdoor routes on Peloton Treads. More than 1 million monthly active users engaged with Peloton IQ in September. The company also added Whoop and Google Gemini integrations alongside Apple, Garmin and Fitbit.
- Future Expansion Into New Product CategoriesPeloton said it plans to launch hardware in a new category in fall 2027. Management believes this category, together with other initiatives, will meaningfully expand its total addressable market and support sustained revenue growth in the future.
- Commercial Business Delivered Double-Digit GrowthThe Commercial Business Unit delivered a 13% year-over-year revenue increase in Q1. Early interest in the new Peloton Commercial Series exceeded initial expectations, with trials and advanced conversations underway with global gym operators and premium hospitality partners.
- Commercial Expansion Supported by Precor DistributionPeloton said Precor serves more than 80,000 facilities across 60 countries, compared with Peloton-branded products in six countries. Management plans to use the Precor distribution network to expand into gyms, studios, hospitality and multiple dwelling units, and said Peloton has roughly 4% market share in the commercial space.
- Retail Footprint Nearly Doubled Year-over-YearPeloton opened 10 new U.S. micro-store locations since the beginning of fiscal 2027, bringing the total to 19 stores, nearly double the fleet from the same period last year. The company said micro-stores are efficient on a sales-per-square-foot basis and drive a higher mix of premium SKUs. It also launched Fitness Factory locations, its first Canada-specific retail partner.
- Marketing Campaign Increased Store DemosThe 'Let Yourself Run' multichannel campaign featuring Miley generated a more than 100% surge in demos at Peloton's first-party retail stores and a measurable increase in share of voice.
- International Growth Opportunity Remains SignificantA survey across Peloton's six branded-product markets identified approximately 45 million people who are interested, willing and able to pay for current and planned Peloton products. Management said its five non-U.S. markets show retention and engagement behavior similar to the U.S., indicating strong product-market fit in those markets.
- Lower Operating Expenses and Stock-Based CompensationAdjusted operating expenses were $226 million, down $4 million or 2% year-over-year. Lower G&A and R&D expenses, primarily from lower payroll and stock-based compensation, more than offset higher sales and marketing expenses. Stock-based compensation was $40 million, down $7 million or 16% year-over-year and described as the lowest level in many years.
- AI-Enabled Efficiency and Continued InnovationPeloton said embedding AI across its operations is enabling it to innovate faster and at lower cost. R&D spending declined from more than $300 million in fiscal 2024 to roughly $240 million in fiscal 2026 and an even lower run rate in fiscal 2027, while management said the pace and scope of innovation increased.
- Full-Year EBITDA and Free Cash Flow Targets MaintainedFiscal 2027 adjusted EBITDA guidance remains $475 million to $525 million, representing approximately 7% year-over-year growth at the midpoint. The company also maintained its minimum full-year free cash flow target of at least $350 million.
- Positive Refinancing Feedback and Financial FlexibilityPeloton completed meetings with rating agencies and investors and received positive feedback. Management said the company has no near-term debt maturities, a net cash balance sheet and the flexibility to be patient and methodical in pursuing refinancing.
MX:PTON Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 04, 2027 | 2027 (Q2) | 0.32- | -1.69 | ― | ― |
| Nov 05, 2026 | 2027 (Q1) | 2.003.56 | 0.56 | 533.33% (+3.00) | |
| Aug 06, 2026 | 2026 (Q4) | 2.252.43 | 0.94 | 160.00% (+1.50) | |
| May 07, 2026 | 2026 (Q3) | 1.421.12 | -2.25 | 150.00% (+3.37) | |
| Feb 05, 2026 | 2026 (Q2) | -0.99-1.69 | -4.49 | 62.50% (+2.81) | |
| Nov 06, 2025 | 2026 (Q1) | 0.210.56 | 0 | ― | |
| Aug 08, 2025 | 2025 (Q4) | -1.270.94 | -1.5 | 162.50% (+2.43) | |
| May 08, 2025 | 2025 (Q3) | -1.29-2.25 | -8.43 | 73.33% (+6.18) | |
| Feb 06, 2025 | 2025 (Q2) | -3.69-4.49 | -10.11 | 55.56% (+5.62) | |
| Oct 31, 2024 | 2025 (Q1) | ―0.00 | -8.24 | 100.00% (+8.24) |
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.
