PELOTON INTERACTIVE Reports $96 million Net Income

PELOTON INTERACTIVE reported quarterly results highlighted by GAAP Net Income was $96 million. Adjusted EBITDA* was $168 million, an increase of $50 million or 42% year-over-year., according to its earnings release filed with an 8-K Thursday.

Total Revenue for Q1 was $559 million, an increase of $8 million or 2% year-over-year and $4 million above the midpoint of our guidance range. Ending Paid Connected Fitness Subscriptions were 2.475 million, a decrease of 9% year-over-year and at the top of our guidance range. Total Gross Margin was 61.3% in Q1, representing a year-over-year increase of 975 basis points and above our guidance of 57%, partially driven by nonrecurring benefits. GAAP Net income was $96 million in Q1. Adjusted EBITDA* was $168 million, an increase of $50 million, up 42% year-over-year.

Results detail

Further figures in the release included GAAP Net cash provided by operating activities was $146 million in Q1. Free Cash Flow* was $143 million for the quarter and an increase of $76 million or 113% year-over-year; Commercial Business Unit Revenue once again grew double digits year-over-year in Q1; Below is our outlook for Q2 and Full Year fiscal 2027. We intend to provide further details on our outlook during today’s earnings conference call; Total Revenue is expected to be in the range of $625 million to $650 million, representing a decrease of $19 million or 3% year-over-year at the midpoint.

The filing is an Item 2.02 results announcement furnished with Exhibit 99.1. Comparisons use the year-earlier period as presented by PELOTON INTERACTIVE unless the release specifies another baseline. Where both GAAP and non-GAAP metrics appear, both are summarized when the extract includes them.

Segment mix, cash flow and any outlook language in the release are the usual secondary reads after the headline revenue and earnings figures. One-time items—restructuring, impairments, gains on sales or legal settlements—can move GAAP profit without changing the run-rate story, so reconciliations remain essential.

Why it matters

For retail investors, the PELOTON INTERACTIVE print is a check on whether growth, margins and cash generation are moving together. The figures above come from the company’s Exhibit 99.1 earnings materials; how they stack up against the prior-year run rate and any guide published with the release will shape the near-term debate.

By the numbers

• GAAP Net Income was $96 million. Adjusted EBITDA* was $168 million, an increase of $50 million or 42% year-over-year.
• Total Revenue for Q1 was $559 million, an increase of $8 million or 2% year-over-year and $4 million above the midpoint of our guidance range.
• Ending Paid Connected Fitness Subscriptions were 2.475 million, a decrease of 9% year-over-year and at the top of our guidance range.
• Total Gross Margin was 61.3% in Q1, representing a year-over-year increase of 975 basis points and above our guidance of 57%, partially driven by nonrecurring benefits.
• GAAP Net income was $96 million in Q1. Adjusted EBITDA* was $168 million, an increase of $50 million, up 42% year-over-year.
• GAAP Net cash provided by operating activities was $146 million in Q1. Free Cash Flow* was $143 million for the quarter and an increase of $76 million or 113% year-over-year.

Sources

1. PELOTON INTERACTIVE, INC. Form 8-K with quarterly financial results, filed 2026-11-05 (accession 0001639825-26-000045)

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