Business
Peloton Announces Q2 FY2026 Financial Results
Delivered Year-over-Year Improvement in Profitability While Investing in Ambitious Innovation Agenda Raises Full Year FY2026 Adjusted EBITDA Guidance to $450
About this update from Peloton Interactive, Inc.
[{"type":"text","content":"Delivered Year-over-Year Improvement in Profitability While Investing in Ambitious Innovation Agenda Raises Full Year FY2026 Adjusted EBITDA Guidance to $450 - $500 million* NEW YORK, Feb. 05, 2026 (GLOBE NEWSWIRE) -- Peloton Interactive, Inc. today reported financial results for the quarter ended December 31, 2025. Q2 FY2026 Financial Highlights Ending Paid Connected Fitness Subscriptions were 2.661 million, a decrease of 214,000 or 7% year-over-year and 6,000 above the midpoint of our guidance range. We observed better-than-expected Average Net Monthly Paid Connected Fitness Subscription Churn following Membership price increases announced on October 1, which was partially offset by lower gross additions.Total Revenue was $657 million, a decrease of $17 million or 3% year-over-year and $8 million below our guidance range, primarily driven by lower-than-expected Connected Fitness Product sales to existing Members.Total Gross Margin was 50.5%, an increase of 320 bps year-over-year and 150 bps above our guidance.GAAP Net loss was $39 million. Adjusted EBITDA* was $81 million, an increase of $23 million or 39% year-over-year and $6 million above the high end of our guidance range.GAAP Net Cash provided by operating activities was $72 million. Free Cash Flow* was $71 million, a decrease of $35 million year-over-year. “Our second quarter represented the most substantial period of innovation at Peloton since our founding. At the same time, our financial performance demonstrated our continued operational discipline, resulting in 39% year-over-year growth in Adjusted EBITDA and reducing Net Debt by 52% year-over-year, proving we can simultaneously innovate and increase our profitability,” said CEO Peter Stern. “We’re driving positive momentum across the business: the new Cross Training Series is resonating in the marketplace, our subscription base is highly committed, our integrated Commercial Business Unit is growing and well-positioned to continue doing so, and Member engagement with Peloton IQ is encouraging. Looking ahead, our focus remains on executing our strategy to increase our share of the growing global wellness economy while continuing to enhance our magic formula of premium hardware, intuitive software, and unmatched human coaching.” Q2 FY2026 Business Highlights Introduced the Peloton Cross Training Series, with industry-l...