Free cash flow margins have improved to 23.9% in 2026Q3, though this is largely driven by reduced capital expenditure rather than organic revenue expansion.
| Cash from Operations | 413.7M | 333M | -66.1M | -387.6M | -2.02B | -239.7M | 376.4M | -108.6M | 49.7M | -18.6M |
| Operating CF Margin % | - | 13.37% | -2.45% | -13.84% | -56.39% | -5.96% | 20.61% | -11.87% | 11.43% | -8.51% |
| Operating CF Growth % | 758.7% | 603.78% | 82.95% | 80.81% | -742.72% | -163.68% | 446.59% | -318.51% | 367.2% | - |
| Net Income | 23.2M | -118.9M | -551.9M | -1.26B | -2.83B | -189M | -71.6M | -195.6M | -47.9M | -71.1M |
| Depreciation & Amortization | 66.6M | 89.7M | 108.8M | 124.3M | 142.8M | 63.8M | 40.2M | 21.7M | 6.6M | 3.7M |
| Stock-Based Compensation | 156.3M | 229.6M | 311.7M | 405M | 328.4M | 194M | 88.8M | 89.5M | 8.5M | 10.3M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 17.5M | 0 | -1.7M | 0 | 200K |
| Other Non-Cash Items | 119M | 105.3M | 79.3M | 231.1M | 735.1M | 74.6M | 54.1M | 400K | 1M | 100K |
| Working Capital Changes | 48.6M | 27.3M | -14M | 113.7M | -398.6M | -400.6M | 264.9M | -22.9M | 81.5M | 38.2M |
| Change in Receivables | 15.2M | 2.8M | -7M | -13.8M | -12.8M | 15.1M | 11.3M | -9.1M | -4.1M | -3.6M |
| Change in Inventory | 49.9M | 136.5M | 163M | 537.5M | -173.7M | -587.2M | -96.8M | -111.3M | -9.6M | -5M |
| Change in Payables | -42.1M | -94M | -95.5M | -347.2M | 0 | 384.2M | 78.1M | 95.3M | 32.2M | 27.8M |
| Cash from Investing | -14.5M | -5.1M | 26.8M | -69.9M | 153.3M | -585.1M | -741.3M | -297.5M | -56.7M | -10.2M |
| Capital Expenditures | -12.3M | -9.3M | -19.7M | -82.4M | -337.3M | -252.2M | -156.4M | -83M | -28M | -10.2M |
| CapEx % of Revenue | 0.5% | 0.37% | 0.73% | 2.94% | 9.42% | 6.27% | 8.57% | 9.07% | 6.44% | 4.67% |
| Acquisitions | 0 | 0 | 14.6M | 12.5M | -11M | -478.2M | -45M | -100K | -28.7M | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -2.2M | 4.2M | 31.9M | 0 | -16.1M | -78.2M | 100K | -214.4M | 0 | 0 |
| Cash from Financing | -204.2M | 1.7M | -94.4M | 76.8M | 2.02B | 916.8M | 1.24B | 417.2M | 3.1M | 143.6M |
| Debt Issued (Net) | -208.9M | -10.1M | -138.7M | -7.5M | 694.7M | 976.4M | 0 | 0 | -3.1M | -2.5M |
| Equity Issued (Net) | 5.8M | 7.7M | 41.2M | 86.7M | 1.22B | -53.9M | 1.2B | 408.8M | 0 | 145.6M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -53.9M | 0 | -130.3M | 0 | -170M |
| Other Financing | -1.1M | 4.1M | 3.1M | -2.4M | 101.6M | -5.7M | 44.5M | 8.4M | 6.2M | 500K |
| Net Change in Cash | 212M | 334.9M | -134.6M | -440M | 121.9M | 98.7M | 874M | 11.4M | -3.9M | 114.8M |
| Free Cash Flow | 401.4M | 323.7M | -85.8M | -470M | -2.36B | -491.9M | 220M | -191.6M | 21.7M | -28.8M |
| FCF Margin % | 16.42% | 13% | -3.18% | -16.78% | -65.81% | -12.23% | 12.05% | -20.94% | 4.99% | -13.17% |
| FCF Growth % | 69.15% | 477.27% | 81.74% | 80.06% | -379.22% | -323.59% | 214.82% | -982.95% | 175.35% | - |
| FCF per Share | 0.93 | 0.83 | -0.23 | -1.36 | -7.31 | -1.67 | 1.00 | -0.69 | 0.09 | -0.12 |
| FCF Conversion (FCF/Net Income) | 17.30x | -2.80x | 0.12x | 0.31x | 0.71x | 1.27x | -5.26x | 0.56x | -1.04x | 0.26x |
| Interest Paid | 33.3M | 127.2M | 95.6M | 0 | 1M | 1.3M | 1.9M | 0 | 0 | 0 |
| Taxes Paid | 3.2M | 2.6M | 0 | 0 | 15.2M | 3.5M | 4.1M | 0 | 0 | 0 |
Hardware demand and churn
According to recent financial statements, Peloton's operating cash flow frequently decouples from net income, as evidenced by the 2026Q3 OCF/NI ratio of 5.79, which suggests that reported earnings are significantly influenced by non-cash adjustments rather than pure cash generation from core operations.
The persistent gap between net income and operating cash flow indicates that the company's profitability remains highly sensitive to accounting treatments and non-cash expenses. Investors should monitor whether this divergence reflects sustainable operational efficiency or merely the impact of aggressive cost-cutting and restructuring-related accruals.
As reported in quarterly filings, Peloton has achieved a positive free cash flow trajectory, reaching a 23.9% FCF margin in 2026Q3, though this improvement appears largely driven by reduced capital intensity rather than a fundamental expansion in core hardware or subscription revenue growth.
The shift toward positive free cash flow is a notable departure from the negative cash burn observed in 2024Q2. However, this trend warrants further investigation to determine if it can be sustained without sacrificing the long-term investment required to maintain the competitive moat of the connected fitness ecosystem.
Based on the provided cash flow data, working capital changes have been highly erratic, swinging from a $65.5M outflow in 2025Q1 to a $38.1M inflow in 2026Q3, highlighting the company's ongoing struggle to manage inventory levels and supplier payment cycles effectively.
The volatility in working capital suggests that the company's supply chain and inventory management remain under pressure as it pivots away from in-house manufacturing. This instability may indicate that cash flow remains vulnerable to sudden shifts in demand or disruptions in the logistics network.
Data from recent SEC filings reveals that stock-based compensation has historically been a significant non-cash expense, peaking at $103.1M in 2024Q4, which effectively masks the true cash cost of talent retention and complicates the assessment of the company's underlying operational cash generation.
By excluding stock-based compensation from cash flow analysis, the company's performance may appear more robust than it is on a fully diluted basis. Analysts should adjust for these non-cash charges to better understand the actual cash impact of the company's compensation structure on shareholder value.
Quick answers to the most common questions about buying PTON stock.
Peloton Interactive, Inc. (PTON) generated $333.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Peloton Interactive, Inc. (PTON) generated $323.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Peloton Interactive, Inc. (PTON) spent $9.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.