Overview

* Peloton Q1 FY2026 revenue falls 6% yr/yr but beats guidance

* Net income rises to $14 mln, up $15 mln yr/yr

* Adjusted EBITDA increases 2% yr/yr, $18 mln above guidance

Outlook

* Peloton expects Q2 revenue between $665 mln and $685 mln

* Company projects Q2 gross margin at approximately 49.0%

* Peloton forecasts full-year revenue of $2.4 bln to $2.5 bln

* Company raises full-year adjusted EBITDA outlook to $425 mln to $475 mln

* Peloton increases full-year free cash flow target to a minimum of $250 mln

Result Drivers

* INVENTORY COSTS - Gross margin impacted by $13.5 mln accrual for Bike+ seat post inventory costs

* SUBSCRIPTION DECLINE - Ending paid connected fitness subscriptions decreased by 164,000 yr/yr

* NEW PRODUCT LAUNCHES - Launched Peloton Cross Training Series and Peloton IQ to drive future growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $551 mln $539.82

Revenue mln (15

Analysts

)

Q1 EPS $0.03

Q1 Gross 51.50%

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the recreational products peer group is "buy"

* Wall Street's median 12-month price target for Peloton Interactive Inc ( PTON ) is $9.86, about 27.7% above its November 5 closing price of $7.13

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)