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olivLaw · US equity research

Peloton Interactive, Inc. PTON

Sporting & Athletic Goods, NEC · SIC 3949 · Vertical: Sporting & Athletic Goods, NEC (SIC 3949)

5.46USD+2.82% · 1 dayClose 04 Nov 2026

Peloton is a global fitness and wellness company that sells connected equipment and subscriptions for live and on-demand content. Fiscal 2026 brought its first full year of net profit in the company's history, but guidance for 2027 points to lower revenue, which makes the period important for judging the business model.

At the close of 04 Nov 2026, Peloton Interactive, Inc. (PTON) stock was 5.46 USD (+2.82% on the day), with P/E 39.0 on diluted EPS of 0.14 USD over the last 12 months, beta 1.81, 52-week range 3.71–7.66 USD. Latest reported quarter (Q4 2026): revenue of 607.7 m USD (+0.1% YoY), net income of 61.6 m USD (+185.2% YoY), diluted EPS 0.14 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
unavailable
P/E (TTM)
39.0
Diluted EPS TTM 0.14 · TTM to 30 Jun 2026
E/P (TTM)
2.56%
TTM to 30 Jun 2026
Dividend yield
unavailable
Beta (2y)
1.81
Volatility (1y) 61%
52-week range
3.717.66

Price history

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Technical reading

RSI (14)
58.2
strong (55–70)
Bollinger (20, 2)
4.99 – 5.52
in the upper half of the band · %B 0.89 · band width 10.1%
SMA 50 / 200
5.12 / 5.22
mixed trend
MACD (12, 26, 9)
0.06 / 0.05
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+9.0%−1.1%+10.1 pp—
3 months−16.3%−0.5%−15.8 pp—
6 months+5.0%+4.4%+0.6 pp—
Year to date−11.4%+12.3%−23.7 pp—
1 year−22.8%+13.5%−36.3 pp+16.5%
3 years+4.8%+76.4%−71.6 pp−6.8%
5 years−90.2%+63.7%−153.9 pp—
Max drawdown (1y)
−51.6%
07 Nov 2025 → 10 Mar 2026
Max drawdown (5y)
−94.7%
16 Nov 2021 → 14 Aug 2024
Compound annual growth (5y)
−37.1%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q4 2026 · 30 Jun 2026

Revenue
607.7 m USD
+0.1% YoY
Net income
61.6 m USD
+185.2% YoY
Diluted EPS
0.14
+157.9% YoY
net / operating
10.1% / 13.4%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26
Revenue586.0 m673.9 m624.0 m606.9 m550.8 m656.5 m630.9 m607.7 m
Cost of revenue282.2 m355.6 m306.0 m278.8 m267.1 m325.2 m303.7 m263.4 m
Gross profit303.8 m318.4 m318.1 m328.1 m283.7 m331.3 m327.3 m344.4 m
Research & development58.5 m60.3 m59.6 m55.8 m62.1 m65.0 m58.8 m56.9 m
Operating income12.5 m-45.9 m-32.4 m29.6 m41.3 m-14.3 m52.5 m81.2 m
Depreciation & amortisation24.8 m22.8 m ≈21.2 m ≈20.9 m16.8 m15.3 m ≈13.6 m ≈11.5 m
Interest expense35.4 m34.6 m32.6 m31.9 m32.3 m31.5 m30.0 m30.0 m
Pre-tax income0-91.2 m-46.9 m22.6 m14.6 m-39.0 m26.9 m60.6 m
Income tax800.0 k700.0 k800.0 k1.1 m700.0 k-200.0 k400.0 k-1.0 m
Net income-900.0 k-92.0 m-47.7 m21.6 m13.9 m-38.8 m26.4 m61.6 m
Diluted EPS0.00-0.24-0.120.05 ≈0.03-0.090.060.14 ≈
Operating cash flow12.5 m106.7 m ≈96.7 m ≈117.1 m71.9 m71.9 m ≈152.7 m ≈91.1 m
Capex1.8 m700.0 k ≈2.1 m ≈4.7 m4.5 m900.0 k ≈2.2 m ≈2.3 m

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 0 percentile of its own 5-quarter history (min 42.7, median 181.4, max 1,417.7; quarters with earnings only).

Fiscal years

Fiscal year20192020202120222023202420252026
Revenue915.0 m1.8 bn4.0 bn3.6 bn2.8 bn2.7 bn2.5 bn2.4 bn
Revenue YoY+110.3%+99.6%+120.3%−10.9%−21.8%−3.6%−7.8%−1.8%
Net income-195.6 m-71.6 m-189.0 m-2.8 bn-1.3 bn-551.9 m-118.9 m63.2 m
Net income YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
Diluted EPS-10.72-0.32-0.64-8.77-3.64-1.51-0.300.14
Diluted EPS YoYunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable
net %-21.4%-3.9%-4.7%-78.9%-45.1%-20.4%-4.8%2.6%
Free cash flow-191.6 m223.4 m-480.7 m-2.4 bn-470.0 m-85.8 m323.7 m377.7 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 30 Jun 2026

Cash
1.2 bn USD
Financial debt
1.3 bn USD
Net debt
133.4 m USD
Equity
-139.7 m USD
Total assets
2.1 bn USD
Debt / equity
unavailable
Current ratio
2.84x
ROE
unavailable
ROA
3.0%
FCF margin
15.4%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
2.7 bn
2025
2.5 bn
2026
2.4 bn

SEC (XBRL)· 06 Aug 2026verified

Cost of revenue
2024
1.5 bn
2025
1.2 bn
2026
1.2 bn

SEC (XBRL)· 06 Aug 2026verified

Gross profit
2024
1.2 bn
2025
1.3 bn
2026
1.3 bn

SEC (XBRL)· 06 Aug 2026verified

Research & development
2024
304.8 m
2025
234.2 m
2026
242.8 m

SEC (XBRL)· 06 Aug 2026verified

Operating income
2024
-529.0 m
2025
-36.2 m
2026
160.7 m

SEC (XBRL)· 06 Aug 2026verified

Depreciation & amortisation
2024
108.8 m
2025
89.7 m
2026
57.2 m

SEC (XBRL)· 06 Aug 2026verified

EBITDA
2024
-420.2 m ≈
2025
53.5 m ≈
2026
217.9 m ≈

SEC (XBRL)· 06 Aug 2026derived

Interest expense
2024
112.5 m
2025
134.5 m
2026
123.8 m

SEC (XBRL)· 06 Aug 2026verified

Pre-tax income
2024
-552.1 m
2025
-115.6 m
2026
63.1 m

SEC (XBRL)· 06 Aug 2026verified

Income tax
2024
-200.0 k
2025
3.4 m
2026
-100.0 k

SEC (XBRL)· 06 Aug 2026verified

Net income
2024
-551.9 m
2025
-118.9 m
2026
63.2 m

SEC (XBRL)· 06 Aug 2026verified

Diluted EPS
2024
-1.51
2025
-0.30
2026
0.14

SEC (XBRL)· 06 Aug 2026verified

Weighted average diluted shares
2024
365.5 m
2025
390.0 m
2026
436.2 m

SEC (XBRL)· 06 Aug 2026verified

Balance sheet · USD

Cash
2024
697.6 m
2025
1.0 bn
2026
1.2 bn

SEC (XBRL)· 06 Aug 2026verified

Receivables
2024
103.6 m
2025
101.2 m
2026
82.5 m

SEC (XBRL)· 06 Aug 2026verified

Inventories
2024
329.7 m
2025
205.6 m
2026
135.4 m

SEC (XBRL)· 06 Aug 2026verified

Current assets
2024
1.3 bn
2025
1.4 bn
2026
1.5 bn

SEC (XBRL)· 06 Aug 2026verified

Property, plant & equipment, net
2024
353.7 m
2025
239.0 m
2026
164.5 m

SEC (XBRL)· 06 Aug 2026verified

Goodwill
2024
41.2 m
2025
41.2 m
2026
44.0 m

SEC (XBRL)· 06 Aug 2026verified

Intangibles (excl. goodwill)
2024
15.0 m
2025
5.6 m
2026
11.7 m

SEC (XBRL)· 06 Aug 2026verified

Total assets
2024
2.2 bn
2025
2.1 bn
2026
2.1 bn

SEC (XBRL)· 06 Aug 2026verified

Accounts payable
2024
85.4 m
2025
66.7 m
2026
53.5 m

SEC (XBRL)· 06 Aug 2026verified

Short-term debt
2024
10.0 m
2025
208.5 m
2026
10.0 m

SEC (XBRL)· 06 Aug 2026verified

Long-term debt
2024
1.5 bn
2025
1.5 bn
2026
1.3 bn

SEC (XBRL)· 06 Aug 2026verified

Current liabilities
2024
685.2 m
2025
803.9 m
2026
525.0 m

SEC (XBRL)· 06 Aug 2026verified

Total liabilities
2024
2.7 bn
2025
2.5 bn
2026
2.2 bn

SEC (XBRL)· 06 Aug 2026verified

Equity
2024
-519.1 m †
2025
-413.8 m †
2026
-139.7 m †

SEC (XBRL)· 06 Aug 2026verified

Cash flow · USD

Operating cash flow
2024
-66.1 m
2025
333.0 m
2026
387.6 m

SEC (XBRL)· 06 Aug 2026verified

Capex
2024
19.7 m
2025
9.3 m
2026
9.9 m

SEC (XBRL)· 06 Aug 2026verified

Free cash flow
2024
-85.8 m ≈
2025
323.7 m ≈
2026
377.7 m ≈

SEC (XBRL)· 06 Aug 2026derived

Investing cash flow
2024
26.8 m
2025
-5.1 m
2026
-21.4 m

SEC (XBRL)· 06 Aug 2026verified

Financing cash flow
2024
-94.4 m
2025
1.7 m
2026
-207.6 m

SEC (XBRL)· 06 Aug 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-1.8%
computed by olivLawFY 2026
Revenue CAGR 3Y
-4.4%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
-9.5%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
unavailable
the base of the ratio is not positive
Net income growth (YoY)
unavailable
the base of the ratio is not positive
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
unavailable
the base of the ratio is not positive
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
16.7%
computed by olivLawFY 2026

Profitability

Gross margin
52.6%
computed by olivLawFY 2026
EBITDA margin
8.9%
computed by olivLawFY 2026
EBIT margin
6.6%
computed by olivLawFY 2026
Net margin
2.6%
computed by olivLawFY 2026
FCF margin
15.4%
computed by olivLawFY 2026

Returns

ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
ROA
3.0%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROIC
unavailable
equity is negative: buybacks shrink the invested capital and ROIC would come out large without meaning anything
ROCE
10.5%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
133.4 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
0.6x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Debt / equity
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Interest coverage
1.3x
computed by olivLawFY 2026

Liquidity

Current ratio
2.8x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
2.6x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
2.3x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
387.6 m USD
computed by olivLawFY 2026
Capital expenditure
9.9 m USD
computed by olivLawFY 2026
Free cash flow
377.7 m USD
computed by olivLawFY 2026
FCF conversion
597.6%
computed by olivLawFY 2026
Cash conversion
177.9%
computed by olivLawFY 2026

Efficiency

Days sales outstanding
14 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
54 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Days payables outstanding
19 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Cash conversion cycle
48 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026

Market and valuation

Market capitalisation
unavailable
input data missing
Enterprise value
unavailable
input data missing
Market cap / net income TTM
unavailable
input data missing
P/E (TTM)
39.0x
computed by olivLawFY 2026
Earnings yield
2.6%
computed by olivLawFY 2026
P/B
unavailable
input data missing
P/S
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
unavailable
input data missing
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 52.1% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

5.46 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: unavailable

Key indicators

Market capitalisation
unavailable
input data missing
P/E (TTM)
39.0x
computed by olivLawFY 2026
P/B
unavailable
input data missing
EV/EBITDA
unavailable
input data missing
ROE
unavailable
equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
Net margin
2.6%
computed by olivLawFY 2026
Revenue growth (YoY)
-1.8%
computed by olivLawFY 2026
Dividend yield
unavailable
no dividend in the structured statements; a missing line is not a confirmed zero

Coverage and freshness

32/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Source: SEC (XBRL)published 06 Aug 2026
verified 1163derived 95

Score by group

52% · Insufficient data

Estimated value range

Low
2.32
USD per share
Mid
2.95
USD per share
High
3.10
USD per share
Price: 5.46 USD
The price is above the range
Potential to the central value: -46.0% (value / price − 1)
Margin of safety: -85.2% (1 − price / value)
Agreement between methods: single method · 1 methods used · 1 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 2.32 – 3.10 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/E2.32 – 3.10 (Mid 2.95)
    3 companies used · median multiple 21.1x · quartiles 16.6x – 22.2x
    ESCA, GOLF, YETI
  • Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Multiple comparisons use the SIC vertical: Sporting & Athletic Goods, NEC (SIC 3949)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 52.1% of at least 60%

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality2.6%73 (vs peers)12%
FCF conversion · Quality597.6%100 (on a fixed band)12%
Revenue CAGR 3Y · Growth-4.4%0 (on a fixed band)16%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheet0.6x20 (vs peers)20%
Interest coverage · Balance sheet1.3x0 (on a fixed band)12%
Current ratio · Balance sheet2.8x100 (on a fixed band)8%
P/E (TTM) · Valuation39.0x0 (on a fixed band)20%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet30/100 · 3/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality86/100 · 2/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation· partial0/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

PELOTON INTERACTIVE, INC. (PTON). Latest full fiscal year: 2026; data up to 2026-06-30.

Figures computed from the financial statements: revenue 2.4 bn USD in 2026; YoY growth -1.8%; net margin 2.6%; net debt/EBITDA 0.6x.

The estimated value range is 2.32–3.10 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 2.95 USD, the price of 5.46 USD leaves a potential of -46.0% (value / price − 1) and a margin of safety of -85.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 52.1% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 2.6%
  • FCF conversion: 597.6%
  • Current ratio: 2.8x

What contradicts it

  • Revenue CAGR 3Y: -4.4%
  • Net debt / EBITDA: 0.6x
  • Interest coverage: 1.3x
  • P/E (TTM): 39.0x
  • The price is above the estimated value range

Not assessed (insufficient data or a ratio without meaning): ROIC, EPS CAGR 3Y, EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Sporting & Athletic Goods, NEC (SIC 3949) · same industry (4-digit SIC) · compared with 11 companies

Multiples and returns vs the median

P/E
39.0x
vertical median 21.1x
above median (+85.2%)
EV/EBITDA
—
vertical median 11.1x
P/S
—
vertical median 1.3x
P/B
—
vertical median 1.4x
ROE
—
vertical median -7.8%
Net margin
2.6%
vertical median -3.1%
above median
EBIT margin
6.6%
vertical median -2.2%
above median
Revenue YoY
-1.8%
vertical median -0.5%
below median
Net debt/EBITDA
0.6x
vertical median -0.3x
above median
Dividend yield
—
vertical median 2.3%

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
GOLFAcushnet Holdings Corp.4.9 bn23.325.7%8.2%+4.1%+2% / +52%
YETIYETI Holdings, Inc.3.5 bn21.125.3%9.2%unavailable+17% / +13%
CALYCallaway Golf Company3.0 bn—-11.3%-12.4%−0.8%+29% / +35%
ESCAEscalade, Incorporated290.7 m12.113.5%10.0%−4.5%+59% / +14%
AOUTAmerican Outdoor Brands, Inc.226.2 m—-2.4%-2.0%−14.3%+150% / +109%
CLARClarus Corporation169.2 m—-14.9%-12.4%−5.2%+23% / −22%
KBSXFST Corp.62.2 m—-7.8%-3.1%+31.4%−1% / −87%
GMEXGmex Robotics Corporation10.7 m—-91.5%-308.0%+7.9%−100% / −100%
NWTGNewton Golf Company, Inc.4.9 m—-2,023.2%-124.4%+136.1%−45% / −100%
TRUGTrugolf Holdings, Inc.586.0 k—-349.3%-55.7%−13.6%−100% / −100%
JOUTJohnson Outdoors Inc.——-1.8%-1.2%−0.1%+19% / −7%
PTONPeloton Interactive, Inc.—39.0—2.6%−1.8%−23% / +5%

1- and 3-year price returns: for PTON from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Scenarios are not available. input data missing

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Peloton is a global fitness and wellness company that sells connected equipment and subscriptions for live and on-demand content. Fiscal 2026 brought its first full year of net profit in the company's history, but guidance for 2027 points to lower revenue, which makes the period important for judging the business model 12.

SWOT

Strengths

  • A globally recognised brand and a loyal Member base, with recurring revenue from subscriptions 1. Subscription gross margin is high and has risen in recent years 1.
  • A portfolio of patents and registered trademarks protects proprietary technology and content, and in-house studios produce original content that is hard to copy 1.
  • The company reached its first full year of net profit and positive free cash flow, giving it financial flexibility 2.

Weaknesses

  • The number of paid connected subscriptions has fallen in recent years, and churn rose in the fourth quarter of fiscal 2026 12.
  • Hardware margins are thin and sensitive to inventory, discounts and recall costs 12.
  • The company had significant operating losses in the past and has not yet shown a stable profit over the long term 1.

Opportunities

  • Expansion into the commercial fitness market and the Commercial Business Unit could diversify revenue if adoption grows 12.
  • Microstores and owned retail channels have beaten internal sales targets, and a plan to expand the fleet could support sales 2.
  • Digital partnerships and expansion into wellness, recovery and Pilates could attract new categories of Members 12.

Threats

  • Competition from equipment makers and fitness apps could reduce market share and pressure prices 1.
  • Tariffs and trade policy changes could raise production and sourcing costs 1.
  • Demand for at-home fitness products could fall if economic conditions worsen or interest in home workouts declines 1.

Risks

  • Decline in subscriptionshigh

    If the number of paying Members keeps falling, recurring revenue and profitability could be affected 12.

  • Lower revenue guidancehigh

    Guidance for fiscal 2027 points to lower revenue than the prior year, which could slow the company's recovery 2.

  • Product recallmedium

    Additional costs linked to the recall of the Original Series Bike+ could be significant if the number of incidents rises 1.

  • Tariffs and supply chainmedium

    New tariffs and legislative changes could raise costs and complicate inventory management 1.

  • Patent litigationmedium

    The company recorded a non-recurring legal accrual linked to patent litigation, and further proceedings could add costs 2.

Investment thesis

What would need to be true (bull case)

  • If cost discipline and cash generation hold, the company could invest in products and the Commercial Business Unit without relying on external financing 2.
  • Rising subscription gross margin and a global Member base could support recurring revenue over the long term 1.
  • If wellness and Pilates expansion attracts new Members, the company could reduce its reliance on hardware sales 12.

What would break the thesis

  • A continued fall in subscriptions and rising churn could reduce recurring revenue, which is the base of the business model 12.
  • Guidance for 2027 points to lower revenue, and a return to growth could be slower than the market expects 2.
  • Competition and price pressure could reduce hardware margins, which are already thin 1.

What to watch

  • Number of paid connected subscriptions and average monthly churnQ1 2027
  • Delivery of fiscal 2027 revenue and gross margin guidance2027
  • Performance of the Commercial Business Unit and microstore expansionnext 10-K
  • Impact of tariffs and IEEPA refunds on costsQ1 2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Peloton describes its model as an integration of premium hardware, proprietary software, instructors and content, with revenue generated mainly from recurring subscriptions and the sale of connected products 1. The company has about 5.5 million Members as of June 30, 2026 and serves commercial customers in over 60 countries through its Commercial Business Unit, which includes the Precor brand 1. Total revenue for fiscal 2026 was 2.446 billion USD 2.

Segments

Subscriptions

Connected Fitness and Peloton app subscriptions are the segment with the highest margin, and subscription gross margin rose to 71.4% in fiscal 2026 1. The number of paid connected subscriptions fell to 2.553 million at the end of fiscal 2026 1.

Connected Fitness Products and Precor

This covers Peloton bikes, treadmills and rowers from the Cross Training and Pro series, as well as commercial Precor equipment. It carries lower margins than subscriptions and was affected by the voluntary recall of the Original Series Bike+ announced in November 2025 12.

Commercial Business Unit

This unit sells to gyms, hotels, multi-family residences and companies, and revenue grew double digits in fiscal 2026 2. The company treats it as one of its most important growth areas 12.

Market context

The at-home connected fitness market is contested, with low barriers to entry and competition from equipment makers, wellness apps, studio classes and gyms 1. Growth after the pandemic has slowed, and demand for hardware is sensitive to economic conditions and shifts in consumer preferences 1.

The commercial fitness market is a new segment the company is pursuing through the integration of Precor and Peloton for Business, but adoption at the expected scale is not assured 1. Tariffs and trade policy remain an important cost and risk factor for the supply chain 1.

Trends

  • Cost reduction and return to profittailwind

    The 2025 restructuring reduced costs, and the company exceeded its plan of more than 100 million USD in run-rate savings by the end of fiscal 2026 2. If cost discipline holds, profitability could support product investment 2.

  • Decline in paid subscriptionsheadwind

    The number of paid connected subscriptions keeps falling year on year, and guidance for the first quarter of 2027 expects a further reduction 2. If churn stays high, recurring revenue could be affected 12.

  • Tariffs and trade rulesmixed

    The February 2026 Supreme Court decision invalidated IEEPA tariffs and the company filed refund claims, but new Section 301 tariffs could affect production costs 1. The final effect depends on implementation and scope 1.

  • Expansion into wellness and contenttailwind

    The company launched Peloton IQ, strength programs and Breathwrk, and acquired Skōp for connected Pilates, while the Spotify partnership extends digital reach 12. Wellness expansion could support Member retention if the products are well received 1.

Competitive position

Peloton names at-home fitness equipment, health and wellness apps, in-studio classes and fitness clubs as its main sources of competition 1. The company argues that its combination of equipment, software, human coaching and community gives it an advantage over traditional products 1.

Competition is intense, with limited barriers to entry, and rivals can launch similar alternatives faster or more cheaply 1. Pressure on prices and margins could increase if other players expand connected offerings 1.

  • At-home fitness equipment makers

    Companies selling connected bikes, treadmills and rowers for home use, named as direct competition in the hardware category 1.

  • Health and wellness apps

    Digital platforms for training, meditation and breathing that compete for users' attention and subscriptions 1.

  • In-studio group fitness studios

    Studios and clubs with group classes that offer an alternative to home workouts 1.

  • Fitness clubs and gyms

    Gym operators that attract commercial and retail customers and compete indirectly for Peloton subscriptions 1.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Peloton Interactive, Inc. · 06 Aug 2026
  2. [2] Form 8-K, results release (exhibit 99.1) · SEC / Peloton Interactive, Inc. · 06 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.