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Jun 30, 2025
Peloton Q4 2025 Earnings Report
Peloton returned to profitability in Q4 with strong free cash flow and margin expansion.
Key Takeaways
Peloton delivered $606.9M in revenue and $21.6M in net income during Q4 2025, achieving positive free cash flow and its first quarterly profit in over two years.
Returned to profitability with $21.6M in net income.
Generated $112.4M in free cash flow during the quarter.
Total revenue reached $606.9M, ahead of guidance.
Gross margin improved to 54.1% driven by cost efficiencies.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Peloton expects a moderate decline in Q1 FY26 revenue due to seasonality and lower hardware sales, but remains focused on cost efficiency and strong free cash flow.
Positive Outlook
- Gross margin expected to hold near 52% despite cost pressures.
- Continued cost savings from restructuring expected to boost EBITDA.
- Increased monetization through price optimization and promotions.
- Expansion of retail presence and second-hand marketplace.
- New instructor and social engagement initiatives planned.
Challenges Ahead
- Q1 FY26 revenue expected to decline 12% QoQ.
- Paid connected fitness subscriptions projected to fall further.
- Hardware sales expected to decline year-over-year.
- Higher churn expected due to seasonality in Q1.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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