Peloton Interactive Stock Earnings Reports

Peloton reported Q1 fiscal 2026 results that beat the high end of guidance on most key metrics in a seasonally slow quarter. Management announced a voluntary recall of Original Series Bike+ seat posts (approx. 833,000 units U.S., 44,800 in Canada) and has accrued $16.5 million to cover related costs (including $13.5M in Q1). The business continues to show improving profitability: Q1 adjusted EBITDA was $118M (above guidance), free cash flow was $67M, unrestricted cash was $1.104B, and net debt fell 49% year-over-year. Management raised full-year gross margin guidance to 52% and raised adjusted EBITDA guidance to $425M–$475M, and increased the minimum free cash flow target to at least $250M. Subscriber trends: Paid Connected Fitness Subscriptions were 2.732M (down 6% YoY), Q1 churn improved to 1.6% monthly, and pricing changes have so far behaved in line with expectations with a modest near-term churn headwind expected in Q2. Strategic highlights: Peloton launched a major product refresh (Cross Training Series and Peloton Pro), introduced Peloton IQ (AI-driven personalized coaching), expanded retail footprint and commercial offerings (leveraging Precor), acquired Breathwrk (breathing app) and launched Club Peloton (loyalty). Management emphasized operational discipline, realizing cost savings, favorable tariff developments, and confidence in returning to revenue growth in later quarters of the year.