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Dec 31, 2025
Peloton Q2 2026 Earnings Report
Peloton reported Q2 FY2026 financial results, showcasing year-over-year improvement in profitability while investing in ambitious innovation.
Key Takeaways
Peloton Interactive, Inc. reported Q2 FY2026 financial results with total revenue of $657 million, a 3% decrease year-over-year. Despite the revenue dip, the company achieved a GAAP net loss of $39 million and an Adjusted EBITDA of $81 million, marking a 39% year-over-year increase in profitability. Ending Paid Connected Fitness Subscriptions were 2.661 million, a 7% decrease year-over-year.
Total Revenue was $657 million, a decrease of $17 million or 3% year-over-year, primarily due to lower-than-expected Connected Fitness Product sales to existing Members.
Adjusted EBITDA was $81 million, an increase of $23 million or 39% year-over-year, exceeding the high end of their guidance range.
Ending Paid Connected Fitness Subscriptions were 2.661 million, a decrease of 214,000 or 7% year-over-year, but 6,000 above the midpoint of their guidance range.
Total Gross Margin was 50.5%, an increase of 320 bps year-over-year and 150 bps above guidance, reflecting continued operational discipline.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Peloton's Q3 FY26 outlook anticipates a slight decrease in revenue and subscriptions year-over-year, but a significant increase in Adjusted EBITDA and gross margin. The full year FY26 outlook also projects increased Adjusted EBITDA and Free Cash Flow, despite a slight decrease in total revenue.
Positive Outlook
- Q3 FY26 Adjusted EBITDA is expected to be in the range of $120 million to $135 million, representing an increase of $38 million or 43% year-over-year at the midpoint.
- Q3 FY26 Total Gross Margin is expected to be approximately 54.0%, reflecting an increase of 300 bps year-over-year.
- Full Year FY26 Adjusted EBITDA outlook of $450 million to $500 million, representing an increase of $71 million or 18% year-over-year at the midpoint.
- Full Year FY26 Total Gross Margin outlook of approximately 53.0%, reflecting an increase of 210 bps year-over-year.
- Full Year FY26 Free Cash Flow minimum target of $275 million, an increase of $25 million from the previous quarter's target.
Challenges Ahead
- Q3 FY26 Ending Paid Connected Fitness Subscriptions is expected to be in the range of 2.650 million to 2.675 million, representing a decrease of 218,000 or 8% year-over-year at the midpoint.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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