Peloton Reports Q1 FY2027 Revenue of $559 Million, Net Income of $96 Million
Revenue rose 2% year over year and exceeded the midpoint of guidance. Adjusted EBITDA was $168 million, up 42%, while paid connected fitness subscriptions reached 2.475 million. Gross margin was 61.3%, and operating cash flow increased 103% to $146 million.
Peloton reported total revenue of $559 million for the quarter ended September 30, 2026, representing a 2% year-over-year increase and exceeding the midpoint of its guidance. The company achieved a GAAP net income of $96 million and an adjusted EBITDA of $168 million, up 42% compared to the prior year. Ending paid connected fitness subscriptions reached 2.475 million, which was at the top of the company's guidance range. Total gross margin improved to 61.3%, driven in part by nonrecurring benefits and exceeding the company's 57% guidance.
Additionally, Peloton reported a significant improvement in cash flow, with GAAP net cash provided by operating activities rising 103% year-over-year to $146 million, and reduced its gross principal debt by nearly $500 million during the 2026 calendar year.