Peloton delivered a profitable Q1 FY2026, with $13.9M in net income and $67.4M in free cash flow. Revenue fell 6% year-over-year, primarily due to softness in both product and subscription segments, though cost discipline improved margins.
Achieved $13.9M in net income compared to a loss in the prior year
Generated $67.4M in free cash flow, a significant increase from Q1 FY2025
Revenue declined 6% YoY to $550.8M, but beat high end of guidance
Adjusted EBITDA reached $118.3M, exceeding internal forecasts
Peloton expects modest revenue growth in Q2 FY26 with continued positive adjusted EBITDA, but anticipates a decline in paid subscriptions.
Visualization of income flow from segment revenue to net income
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