Peloton Interactive (PTON) AI Stock Analysis

• Market Cap: $2.83B
• Dividend Yield: N/A
• Average Volume (3M): 9.94M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.14
• Revenue Growth: -8.74%
• EPS Growth: 74.66%
• Country: US
• Employees: 2,853
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.03
• Shares Outstanding: 401,969,760
• 10 Day Avg. Volume: 6,354,733
• 30 Day Avg. Volume: 9,943,090
• PEG Ratio: 0.28
• Price to Book (P/B): -6.54
• Price to Sales (P/S): 1.09
• P/FCF Ratio: 8.36
• Enterprise Value/Market Cap: 1.67
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: 37.24
• 1Y Price Target: $9.85
• Price Target Upside: 45.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $6.50 ▼(-4.27% Downside)

Peloton's overall stock score reflects significant financial instability and valuation concerns, despite some positive developments in cash flow and strategic initiatives. The technical analysis indicates bearish momentum, and the earnings call sentiment was neutral, highlighting both achievements and challenges.

Positive Factors

Product Innovation

The introduction of advanced technology in new products like AI-powered features enhances Peloton's competitive edge and market appeal, potentially driving long-term growth.

Cash Flow Improvement

Improved cash flow and a strong cash position provide Peloton with financial flexibility to invest in growth initiatives and weather economic challenges.

Operational Discipline

Cost-saving measures and reduced operating expenses enhance profitability and demonstrate effective management, supporting long-term sustainability.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in market demand or competitive pressures, potentially impacting Peloton's ability to sustain growth.

High Leverage

Significant leverage poses a risk to financial stability, limiting Peloton's ability to invest in growth and increasing vulnerability to economic downturns.

Subscription Decline

A decline in subscriptions can erode recurring revenue streams, impacting long-term financial health and customer engagement.

Peloton Interactive Business Overview & Revenue Model

Company Description

Peloton Interactive, Inc. provides interactive fitness products in North America and internationally. It offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, and Peloton Tread+ names. The company also provides connected fitness subscriptions for various household users, and access to various live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes. As of June 30, 2021, it had approximately 5.9 million members. The company markets and sells its interactive fitness products directly through its retail showrooms and at onepeloton.com. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.

How the Company Makes Money

Peloton generates revenue primarily through two key streams: the sale of fitness equipment and subscription services. The company's hardware offerings, including its Peloton Bike, Bike+, and Tread, contribute significantly to its revenue when sold directly to consumers. Once customers purchase the equipment, they are encouraged to subscribe to Peloton's All-Access Membership, which provides access to its vast library of live and on-demand fitness classes. This subscription model is a recurring revenue stream that has proven to be highly valuable, as it fosters customer loyalty and promotes long-term engagement. Additionally, Peloton has formed strategic partnerships with various fitness and wellness brands, enhancing its market presence and potentially opening new revenue avenues. The combination of hardware sales and subscription services positions Peloton as a formidable player in the fitness industry.

Peloton Interactive Financial Statement Overview

Summary

Peloton faces significant financial challenges with declining revenues, negative profit margins, and high leverage. Despite improvements in cash flow and gross profit margins, the company's financial position remains precarious due to high debt levels and negative equity.

Income Statement

Peloton's income statement reveals a challenging financial position with declining revenue and negative profit margins. The TTM data shows a slight improvement in gross profit margin to 50.83%, but net profit margin remains negative at -4.24%. Revenue growth is negative, indicating a contraction in sales. Despite these challenges, the company has managed to improve its gross profit margin over the past year.

Balance Sheet

The balance sheet highlights significant financial instability, with a negative stockholders' equity and a high debt-to-equity ratio of -2.93 in the TTM period. This indicates that the company is heavily leveraged, posing a risk to financial stability. Return on equity is positive due to negative equity, but this is not a sign of strength. The equity ratio is negative, reflecting the company's financial distress.

Cash Flow

Peloton's cash flow statement shows some positive trends, with a notable improvement in free cash flow growth of 17.52% in the TTM period. The operating cash flow to net income ratio is 0.49, indicating that the company is generating cash from operations, albeit at a low level relative to net income. The free cash flow to net income ratio is close to 1, suggesting that the company is managing its cash flow effectively despite ongoing losses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.46B	2.49B	2.70B	2.80B	3.58B	4.02B
Gross Profit	1.25B	1.27B	1.21B	927.20M	698.40M	1.45B
EBITDA	127.00M	108.60M	-330.40M	-648.80M	-2.62B	-119.60M
Net Income	-104.20M	-118.90M	-551.90M	-1.26B	-2.83B	-189.00M
Balance Sheet
Total Assets	2.17B	2.13B	2.19B	2.77B	4.03B	4.49B
Cash, Cash Equivalents and Short-Term Investments	1.10B	1.04B	697.60M	813.90M	1.25B	1.61B
Total Debt	1.02B	1.98B	2.08B	2.36B	2.37B	1.51B
Total Liabilities	2.52B	2.54B	2.70B	3.06B	3.44B	2.73B
Stockholders Equity	-347.10M	-413.70M	-519.20M	-295.20M	592.90M	1.75B
Cash Flow
Free Cash Flow	380.40M	323.70M	-85.80M	-470.00M	-2.36B	-491.90M
Operating Cash Flow	392.40M	333.00M	-66.10M	-387.60M	-2.02B	-239.70M
Investing Cash Flow	-14.20M	-5.10M	26.80M	-69.90M	153.30M	-585.10M
Financing Cash Flow	-4.80M	1.70M	-94.40M	76.80M	2.02B	916.80M

Peloton Interactive Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTON, the sentiment is Neutral. The current price of 6.79 is above the 20-day moving average (MA) of 6.75, below the 50-day MA of 7.22, and below the 200-day MA of 7.01, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 48.04 is Neutral, neither overbought nor oversold. The STOCH value of 76.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PTON.

Peloton Interactive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LULU	75 Outperform	$23.21B	12.80	42.42%	―	9.16%	12.74%
PLNT	68 Neutral	$8.96B	44.38	―	―	14.39%	31.64%
MODG	64 Neutral	$2.11B	―	-46.95%	―	-3.58%	-12720.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
XPOF	54 Neutral	$390.06M	―	―	―	-3.55%	-111.90%
LUCK	46 Neutral	$1.19B	-20.74	―	2.46%	3.88%	34.36%
PTON	45 Neutral	$2.83B	―	―	―	-8.74%	74.66%

Peloton Interactive Corporate Events

Peloton Updates Executive Compensation Program

On September 14, 2025, Peloton Interactive‘s Compensation Committee approved a redesign of the company’s executive compensation program to better align with market practices and its pay-for-performance philosophy. The changes include a new mix of cash compensation and a transition to a combination of time-based and performance-based restricted stock units for long-term incentives. Additionally, stock ownership guidelines were adopted to ensure executives maintain a minimum level of company stock ownership, reflecting a commitment to aligning leadership interests with those of shareholders.