Peloton Interactive (PTON) AI Stock Analysis

• Market Cap: $2.91B
• Dividend Yield: N/A
• Average Volume (3M): 13.33M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.19
• 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: 391,926,270
• 10 Day Avg. Volume: 8,982,893
• 30 Day Avg. Volume: 13,333,636
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $10.50
• Price Target Upside: 37.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $6.50 ▼(-15.14% Downside)

Peloton's overall stock score is primarily impacted by its financial instability and bearish technical indicators. The company's negative valuation metrics further weigh on its attractiveness. While there are some positive aspects in cash flow improvements, the significant financial and operational challenges overshadow these gains.

Positive Factors

Product Innovation

Peloton's focus on innovation with new product lines and AI-driven features strengthens its competitive position and enhances customer engagement.

Cash Flow Improvement

Improved cash flow and a strong cash position provide Peloton with financial flexibility to invest in growth and manage operational challenges.

Operational Discipline

Operational discipline through cost savings enhances margin sustainability and supports long-term profitability goals.

Negative Factors

Product Recall

The large-scale product recall impacts financials and brand reputation, posing challenges to customer trust and future sales.

Declining Subscriptions

A decline in subscriptions indicates challenges in retaining customers and sustaining recurring revenue, affecting long-term growth.

Financial Instability

Negative equity and high leverage indicate financial instability, limiting Peloton's ability to invest in growth and manage economic downturns.

Peloton Interactive Business Overview & Revenue Model

Company Description

Peloton Interactive, Inc. is a leading fitness technology company that specializes in providing high-quality exercise equipment and digital fitness content. Founded in 2012, Peloton has revolutionized the way people engage in fitness by combining hardware, software, and community. The company's core products include its stationary bicycles and treadmills, which feature interactive touchscreens for streaming live and on-demand classes. In addition to its equipment, Peloton offers a subscription-based service that provides access to a wide variety of fitness classes, including cycling, running, strength training, and yoga, fostering a strong community among users.

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, persistent losses, and a highly leveraged balance sheet. Improvements in cash flow generation are noted, but profitability and leverage issues remain critical concerns.

Income Statement

Peloton's income statement reveals declining revenue growth and negative profit margins. The gross profit margin has improved slightly in the latest year, indicating some cost control, but the net profit margin remains negative, reflecting ongoing losses. The EBIT and EBITDA margins have shown some improvement but remain negative, indicating operational challenges.

Balance Sheet

The balance sheet shows a concerning negative stockholders' equity, leading to a negative debt-to-equity ratio, which indicates financial instability. The return on equity is also negative, reflecting the company's inability to generate profits from its equity base. The equity ratio is low, suggesting high leverage and potential financial risk.

Cash Flow

Peloton's cash flow statement shows positive free cash flow growth, indicating some improvement in cash generation. However, the operating cash flow to net income ratio is low, suggesting that cash generation from operations is weak relative to net income. The free cash flow to net income ratio is close to 1, indicating that most of the net income is being converted into free cash flow.

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	923.60M	698.40M	1.45B
EBITDA	89.80M	108.60M	-330.80M	-1.04B	-2.53B	-119.60M
Net Income	-104.20M	-118.90M	-551.90M	-1.26B	-2.82B	-189.00M
Balance Sheet
Total Assets	2.17B	2.13B	2.19B	2.77B	4.04B	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	-519.10M	-295.20M	603.70M	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	-2.04B	-239.70M
Investing Cash Flow	-14.20M	-5.10M	26.80M	-69.90M	171.00M	-585.10M
Financing Cash Flow	-4.80M	1.70M	-94.40M	76.80M	2.02B	916.80M

Peloton Interactive Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.66
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTON, the sentiment is Positive. The current price of 7.66 is above the 20-day moving average (MA) of 7.46, below the 50-day MA of 7.80, and above the 200-day MA of 7.20, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 39.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTON.

Peloton Interactive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSW	70 Outperform	$2.27B	31.36	13.53%	0.69%	7.27%	45.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PLNT	61 Neutral	$7.72B	46.10	―	―	14.39%	31.64%
MODG	56 Neutral	$1.70B	―	-46.53%	―	-2.35%	-7104.57%
LUCK	46 Neutral	$1.11B	―	―	2.72%	3.88%	34.36%
PTON	40 Underperform	$2.91B	―	―	―	-8.74%	74.66%
XPOF	40 Underperform	$306.72M	―	―	―	-3.55%	-111.90%

Peloton Interactive Corporate Events

Peloton’s Q1 2026 Results: Growth Amid Challenges

Peloton Interactive, Inc. is a leading provider of connected fitness products and services, known for its innovative exercise equipment and subscription-based workout classes, operating primarily in the fitness and wellness industry.

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.

The most recent analyst rating on (PTON) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Peloton Interactive stock, see the PTON Stock Forecast page.

Peloton’s AI Gamble: Navigating Risks and Challenges in a Competitive Market

Peloton Interactive’s increasing reliance on artificial intelligence and machine learning technologies introduces a spectrum of risks that could potentially harm its reputation, competitive standing, and operational results. The integration of these complex and rapidly evolving technologies demands significant investment and skilled personnel, with no guarantee of achieving the anticipated benefits. Additionally, the uncertain legal and regulatory landscape surrounding AI, coupled with potential ethical issues and cybersecurity risks, could lead to legal liabilities and brand damage. Competitors may also outpace Peloton in AI adoption, further challenging its market position and financial performance.

Peloton Interactive Reports Strong FY2025 Performance

Peloton Interactive is a company specializing in connected fitness products and services, offering premium hardware, intuitive software, and engaging fitness content, primarily in the health and wellness sector.

Peloton’s Earnings Call: Financial Gains Amid Challenges

Peloton Interactive’s recent earnings call painted a picture of both optimism and caution. The company reported strong financial improvements, particularly in free cash flow and debt reduction, alongside strategic innovations and leadership enhancements. However, these positive developments were tempered by declines in subscriptions and revenue, as well as ongoing restructuring and tariff challenges.