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Peloton Interactive (PTON)
NASDAQ:PTON
Earnings Data
Report Date
May 13, 2026Before Open (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.06Last Year’s EPS
-0.12Same Quarter Last Year
Moderate Buy
Based on 13 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlights substantial progress on profitability, margins, deleveraging, and cash generation — evidenced by a 39% YoY increase in adjusted EBITDA, meaningful margin expansion, a 52% reduction in net debt, raised EBITDA and free cash flow targets, and encouraging product and engagement signals (Peloton IQ adoption, cross-training launch, commercial growth). However, revenue and subscriber growth remain challenged in the near term: equipment sales to existing members missed expectations, ending subscriptions were down 7% YoY, delivery delays and third-party retail softness impacted results, and full-year revenue guidance implies a modest decline. On balance, the company shows a strong financial and operational recovery trajectory while still working to reaccelerate top-line growth.Company Guidance
Improved Profitability and Margin Expansion
Adjusted EBITDA of $81M in Q2, up $23M or 39% year over year and $6M above the high end of guidance. Q2 total gross margin of 50.5%, up 320 basis points year over year and 150 basis points above guidance; raising full-year gross margin guidance to ~53% (up 100 bps from prior guidance and +210 bps YoY).
Subscription Margin and Pricing Benefit
Subscription gross margin of 72.1% in Q2 (benefited from a $9.7M reduction to accrued music royalties); excluding that one-time benefit, subscription margin would be 69.7% (+180 bps YoY), with ~100 bps driven by subscription price increases net of churn.
Strong Cash and Deleveraging Progress
Unrestricted cash and cash equivalents of $1.18B (up $76M quarter over quarter). Net debt reduced by $351M YoY (-52%) to $319M. Gross leverage improved to 3.6 (from 6.2 YoY) and net leverage to 0.8 (from 2.9 YoY).
Raised Profitability Guidance and Free Cash Flow Target
Full-year adjusted EBITDA guidance raised to $450M–$500M (up $25M vs prior guidance; midpoint +18% YoY). Full-year minimum free cash flow target raised by $25M to at least $275M.
Solid Subscription Resilience and Churn Control
Ending paid Connected Fitness subscriptions of 2,661,000 (6,000 above midpoint of guidance). Average net monthly paid Connected Fitness subscription churn of 1.9% in Q2 (+50 bps YoY) but lower than expected following the subscription price increase, indicating stronger-than-expected retention.
Growing Member Engagement and Peloton IQ Adoption
Workout time per connected fitness subscription increased 7% YoY. Peloton IQ engaged 46% of active members in its first quarter since rollout; all-access member engagement with personalized plans up >10% from Q1. Peloton IQ ranked the most compelling feature among purchasers of cross-training series premium models.
Successful Product Refresh and Positive Reviews
Launched cross-training series, hardware portfolio refresh, Peloton IQ, and new instructors ahead of holiday season. Reviewers (WSJ, Men’s/Women’s Health, PCMag) praised the product reinvention; cross-training sales skewed toward plus line features (camera, form feedback).
Commercial Business Momentum
Commercial business unit revenue grew 10% year over year in Q2, exceeding expectations across U.S. and international markets; management highlights a healthy pipeline and dedicated commercial-grade product roadmap (Peloton Pro series).
Retail Efficiency with MicroStores
Scaled retail footprint to 10 microstores by October; MicroStores drove higher average sales than legacy showrooms and generated more than 8x legacy showroom sales per square foot, indicating improved capital-efficient retail performance.
Strategic Partnerships and Health Outcomes
Partnerships with Twin Health and ReSpin Health (menopause study) showed member health impact: ReSpin program reported 84% of participants experienced overall symptom improvement. Events (F1 partnership) drove +10% brand sentiment and +11% purchase intent.
PTON 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
PTON Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 05, 2026 | $5.91 | $4.39 | -25.72% |
Nov 06, 2025 | $6.71 | $7.66 | +14.16% |
Aug 08, 2025 | $7.11 | $7.84 | +10.27% |
May 08, 2025 | $6.98 | $6.51 | -6.73% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Peloton Interactive (PTON) report earnings?
Peloton Interactive (PTON) is schdueled to report earning on May 13, 2026, Before Open (Confirmed).
What is Peloton Interactive (PTON) earnings time?
Peloton Interactive (PTON) earnings time is at May 13, 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 PTON EPS forecast?
PTON EPS forecast for the fiscal quarter 2026 (Q3) is 0.06.
