TLDR
- Peloton stock rose 4.23% in pre-market trading after Q3 results
- Revenue of $631 million beat estimates of $618.7 million, up 1% year-over-year
- EPS of $0.06 missed the $0.07 analyst consensus
- Adjusted EBITDA surged 41% year-over-year to $126 million
- Full-year revenue outlook narrowed and raised to $2.42–$2.44 billion
Peloton (PTON) stock climbed 4.23% in pre-market trading on Thursday after the company posted Q3 results that beat on revenue but missed on earnings.
Peloton Interactive, Inc., PTON
Revenue came in at $631 million for the quarter ended March 31, topping analyst expectations of $618.7 million. That’s a 1% increase from $624 million in the same period last year.
On the bottom line, adjusted EPS landed at $0.06, falling $0.01 short of the $0.07 consensus estimate. GAAP net income was $26.4 million, a sharp turnaround from a net loss of $47.7 million in the year-ago quarter.
Peloton $PTON raised full-year outlook!
• Revenue guide lifted to $2.42B-$2.44B
• EBITDA + free cash flow outlook boosted
• Commercial revenue grew 14% YoY
• Expanding beyond hardware with $SPOT partnership + 1,400 fitness classes integrated into Spotify Premium https://t.co/ZSYjbvZQ11— Schaeffer's Investment Research (@schaeffers) May 7, 2026
The revenue beat was driven by stronger-than-expected Connected Fitness equipment sales across both the Peloton and Precor brands, which include live and on-demand workout content.
Paid subscriptions ended the quarter at roughly 2.7 million, down 7.6% from a year earlier.
Profitability Metrics Strengthen
Adjusted EBITDA hit $126 million, up 41% year-over-year from $89 million. That’s one of the cleaner numbers in the report.
Free cash flow came in at $151 million, a 59% jump from the prior-year quarter. Net debt dropped 70% year-over-year to $173 million.
CEO Peter Stern said the company made “great progress on deepening our relationships with our Members, growing our opportunities to reach new Members globally, diversifying our revenue streams, and planting new seeds for future growth.”
Full-Year Guidance Gets a Lift
For fiscal 2026, Peloton raised the low end of its annual revenue guidance. The new range is $2.42 billion to $2.44 billion, tightened from the prior range of $2.40 billion to $2.44 billion.
The midpoint of $2.43 billion sits just above the analyst consensus of $2.429 billion.
Peloton also raised its free cash flow target to approximately $350 million, up $75 million from its previous minimum target.
Adjusted EBITDA guidance of $470 million to $480 million remained unchanged. The midpoint represents 18% year-over-year growth.
The Q3 results mark a continued shift in Peloton’s financial position, with net debt now at $173 million compared to levels significantly higher a year ago.
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