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Peloton Interactive (PTON) FY2026 results: revenue $2.4 billion, down 1.8% on the year

Peloton Interactive, Inc. (PTON) reported revenue of $2.4 billion for fiscal 2026, the year ended 30 June 2026, down 1.8% on the year before. Net income was $63 million, and diluted earnings per share $0.14. The figures are the company's own, from the 10-K it filed with the SEC on 6 August 2026.

Revenue
$2.4 billion
-1.8% on the year
FY2019FY2026
Operating margin
6.6%
-1.5% a year earlier
FY2019FY2026
Net income
$63 million
FY2019FY2026
Diluted EPS
$0.14
FY2019FY2026

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 1 narrowed, 7 new.

  • First full year of net profitability achieved: Peloton reported GAAP Net Income of $63M for FY26, the first full year of profitability in company history, versus net loss of $119M in FY25. Operating income was $161M versus loss of $36M.
  • Total revenue flat in Q4, 2 percent growth for full year: Q4 total revenue was $608M, essentially flat versus $607M in Q4 FY25. Full year FY26 revenue of $2,446M was $6M above guidance, representing 1.8% growth from FY25.
  • Subscription decline accelerated with churn rising: Ending Paid Connected Fitness Subscriptions declined to 2.553M, down 247K or 8.8% YoY. Average net monthly churn increased to 2.2% in Q4 from 1.8% in prior year Q4.
  • Total gross margin expanded 170 basis points: Total gross margin improved to 52.6% in FY26 from 50.9% in FY25. Q4 gross margin reached 56.7%, up 260 bps YoY, driven by subscription revenue mix and cost control.
  • Exceeded $100 million cost savings target: Company surpassed plan to deliver more than $100M run-rate cost savings by end of FY26. Full year operating expenses declined 13.7% to $1,126M from $1,305M in FY25.
Read the Q4 FY2026 earnings call summary

The four quarters: Q1 FY2026 · Q2 FY2026 · Q3 FY2026 · Q4 FY2026

Income statement (profit and loss)

$ millionFY2026FY2025FY2024On the yearLast 8 years
Revenue2,4462,4912,700-1.8%
Cost of revenue1,1591,2221,494-5.2%
Gross profit1,2871,2681,206+1.5%
Gross margin52.6%50.9%44.7%
Research and development243234305+3.7%
Operating income161-36.2-529
Operating margin6.6%-1.5%-19.6%
Interest expense124134112-8.0%
Pre-tax income63.1-116-552
Income tax-0.13.4-0.2
Effective tax rate-0.2%n/an/a
Net income63.2-119-552
Net margin2.6%-4.8%-20.4%
Diluted EPS$0.14-$0.30-$1.51
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2026FY2025FY2024On the yearLast 8 years
Operating cash flow388333-66.1+16.4%
Capital expenditure9.99.319.7+6.5%
Free cash flow378324-85.8+16.7%
Free cash flow margin15.4%13.0%-3.2%
Cash from investing-21.4-5.126.8
Cash from financing-2081.7-94.4
Depreciation and amortisation57.289.7109-36.2%
Share-based compensation199230312-13.5%
Diluted shares, weighted436m390m366m+11.8%

Balance sheet

$ millionFY2026FY2025FY2024On the yearLast 8 years
Shareholders' equity-140-414-519
Debt1,3301,5391,549-13.6%
Operating lease liabilities348408503-14.7%
Other liabilities518593652-12.6%
Total liabilities and equity2,0562,1252,185-3.3%
Fixed assets164239354-31.2%
Goodwill44.041.241.2+6.8%
Intangible assets11.75.615.0+108.9%
Cash and equivalents1,2071,040698+16.1%
Receivables82.5101104-18.5%
Inventory135206330-34.1%
Other assets411493644-16.6%
Total assets2,0562,1252,185-3.3%

10-K for the year ended 30 June 2026, filed 6 August 2026: the filing.