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Jun 30
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.
Peloton
Peloton
Peloton Revenue by Segment
Peloton Revenue by Geographic Location
Revenue by Segment
Connected Fitness Products Revenue
CapyFin.comSubscription Revenue
CapyFin.comRevenue by Geographic Location
Total Revenue
CapyFin.com 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.
- Free cash flow faces headwinds from tariffs and restructuring charges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income