Peloton first annual profit fiscal 2026 earnings results

Peloton reported its first full fiscal year of net income on Thursday, posting a $63.2 million profit for the year ended June 30, 2026 — a reversal from a $118.9 million loss in the prior year. Peloton stock slid roughly 13% in premarket trading after the revenue outlook came in below what investors had anticipated.

For fiscal 2027, Peloton expects total revenue of $2.3 billion to $2.4 billion, a drop of roughly 4% from fiscal 2026's $2.446 billion. Analyst expectations had been $2.42 billion, according to CNBC. Despite the lower revenue outlook, the company projected adjusted EBITDA of $475 million to $525 million for the year, up from $468.2 million in fiscal 2026, and set a free cash flow target of at least $350 million.

Fiscal 2026 full-year revenue came in at $2.446 billion, down from $2.491 billion the year before. Paid connected fitness subscriptions ended the year at 2.553 million, a decline of 247,000, or 8.8%, from the prior year.

For the fiscal fourth quarter ended June 30, Peloton earned $61.6 million, or 13 cents per diluted share, against $21.6 million, or 5 cents per share, in the same period a year ago. Revenue for the quarter came in at $607.7 million, essentially flat compared with $606.9 million in the year-ago period. Analysts had expected earnings of 13 cents per share and revenue of $598 million, according to CNBC.

Chief Executive Officer Peter Stern called fiscal 2026 a "landmark" year for the company. "This was the year where Peloton sort of grew up," Stern said. "That solid foundation positions us for what we need to do to get to long-term growth to deliver on our strategy of becoming a connected wellness company."

Among other business updates, Peloton said its commercial business unit revenue grew at a double-digit rate in fiscal 2026 and that it plans to double its microstore retail fleet in fiscal 2027. The company also completed the acquisition of Skōp, an early-stage connected Pilates company, and expanded its reach through a partnership with Spotify, the company said.