NASDAQ$PTON

Peloton Interactive · Q4 2025 earnings

Q4 2025 earnings · · Before market open · Investor relations

Briefing

Peloton Interactive reported Q4 2025 results with revenue of $606.9 million and net income of $21.6 million.

Peloton delivered Q4 revenue of $606.9 million, exceeding guidance, with strong gross margin expansion to 54.1% and positive net income of $21.6 million. The company generated $112.4 million in free cash flow and reduced net debt by 43% year-over-year. FY2025 total revenue reached $2.49 billion with Adjusted EBITDA of $403.6 million.

  • Q4 total revenue of $606.9 million outperformed guidance, driven by higher hardware sales and subscription revenue.
  • Connected Fitness Products gross margin improved 900 bps year-over-year to 17.3%, and subscription gross margin rose 370 bps to 71.9%.
  • Achieved positive GAAP net income of $21.6 million and Adjusted EBITDA of $140.0 million in Q4.
  • Ended FY2025 with $1.04 billion in cash and reduced net debt to $459 million, a 43% year-over-year decrease.

Headline financials

Total Revenue

$607M

Previous: $644M-5.7%
EPS (adj)

$0.05

Previous: -$0.08+162.5%
Ending Paid Connected Fitness Subscriptions

2.8M

Previous: 3.0M-5.9%
Avg Net Monthly Paid CF Sub Churn

1.8%

Previous: 1.9%-5.3%
Ending Paid App Subscriptions

552.0K

No prior period
Members

6.0M

No prior period
Free Cash Flow

$112M

No prior period
Net Income

$21.6M

Previous: -$30.5M+170.8%
Operating Income

$29.6M

Previous: -$63.3M+146.8%
Gross Profit

$328M

Previous: $312M+5.2%
Cash & Equivalents

$1.04B

No prior period
Total Assets

$2.13B

No prior period

Revenue & EPS history

Peloton · Revenue · Quarterly

$607M

Q4 2025-5.7%vs Q4 2024
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Peloton · $607M total across 2 segments · Q4 2025

  • Subscription
    $408M
  • Connected Fitness Products
    $199M

Forward guidance

FY2026 guidance includes total revenue of $2.4-2.5 billion, total gross margin of 51.0%, and Adjusted EBITDA of $400-450 million. Q1 FY2026 revenue expected at $525-545 million with Adjusted EBITDA of $90-100 million.

Tailwinds

  • Targeting at least $200 million free cash flow in FY2026
  • Restructuring plan expected to deliver $100 million run-rate savings by end of FY2026
  • Focus on strength, mobility, and new wellness categories to drive member engagement

Headwinds

  • Expected 2% revenue decline year-over-year at midpoint
  • Tariff exposure estimated to impact free cash flow by ~$65 million
  • Continued decline in Peloton hardware sales and paid subscriptions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2025

Historical avgQ4 2025

+0.1%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+2.3%

Avg return

30 days after

54%

15 / 28 earnings

Positive

+44.0%

Q4 2024

Best reaction

-38.1%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+8.5%+3.5%+10.8%
Q2 2026-25.7%-26.4%-35.2%
Q1 2026+13.8%+11.2%-4.3%
Q4 2025+0.6%+15.1%+13.4%
Q3 2025-6.9%-2.4%+4.6%
Q2 2025+12.0%+15.3%-18.1%
Q1 2025+9.0%+15.2%+55.5%
Q4 2024+44.0%+43.5%+45.8%
Q3 2024+6.5%+27.0%+13.0%
Q2 2024-23.7%-21.2%-17.3%
Q1 2024+8.3%+1.2%+29.3%
Q4 2023-21.1%-16.2%-36.2%
Q3 2023-11.6%-11.3%-5.2%
Q2 2023+31.3%+22.1%+7.2%
Q1 2023+8.8%+11.0%+54.1%
Q4 2022-21.3%-28.9%-36.9%
Q3 2022-12.7%+12.3%-21.3%
Q2 2022+30.3%+16.6%-24.0%
Q1 2022-38.1%-44.2%-51.6%
Q4 2021-10.2%-13.8%-20.3%
Q3 2021+1.4%+10.2%+24.7%
Q2 2021+0.8%+0.4%-28.6%
Q1 2021+5.8%-11.3%-3.5%
Q4 2020-7.8%-6.3%+34.9%
Q3 2020+21.8%+18.2%+26.7%
Q2 2020-13.4%-14.6%-25.4%
Q4 2019-0.5%+5.7%+43.5%
Q1 2020-6.5%-4.4%+27.2%
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018

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