Revenue has stabilized around $600M quarterly with 0.1% growth, while gross margin expanded to 56.7% and operating margin reached 13.3% in 2026Q4, driven by a 38% reduction in SG&A from 2024Q3 levels.
Peloton Interactive, Inc. (PTON) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Jun'26 | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 |
|---|
| Sales/Revenue | 2.45B | 2.45B | 2.49B | 2.7B | 2.8B | 3.58B | 4.02B | 1.83B | 915M | 435M | 218.6M |
| Revenue Growth % | -0.06% | -1.8% | -7.77% | -3.56% | -21.83% | -10.93% | 120.26% | 99.55% | 110.34% | 98.99% | - |
| Cost of Goods Sold | 1.11B | 1.16B | 1.22B | 1.49B | 1.87B | 2.88B | 2.57B | 988.2M | 531.4M | 245.4M | 144.7M |
| COGS % of Revenue | - | 47.4% | 49.08% | 55.29% | 66.89% | 80.5% | 63.84% | 54.12% | 58.08% | 56.41% | 66.19% |
| Gross Profit | 1.35B | 1.29B | 1.27B | 1.21B | 927.2M | 698.4M | 1.45B | 837.7M | 383.6M | 189.6M | 73.9M |
| Gross Margin % | 54.83% | 52.61% | 50.92% | 44.71% | 33.11% | 19.5% | 36.16% | 45.88% | 41.92% | 43.59% | 33.81% |
| Gross Profit Growth % | - | 1.45% | 5.04% | 30.23% | 32.76% | -51.98% | 73.62% | 118.38% | 102.32% | 156.56% | - |
| Operating Expenses | 1.08B | 1.1B | 1.3B | 1.74B | 2.12B | 3.43B | 1.64B | 918.4M | 585.8M | 237.2M | 144.6M |
| OpEx % of Revenue | - | 44.99% | 52.37% | 64.3% | 75.86% | 95.82% | 40.83% | 50.3% | 64.02% | 54.53% | 66.15% |
| Selling, General & Admin | 820.8M | 819.4M | 948.9M | 1.3B | 1.34B | 1.91B | 1.39B | 828.1M | 531M | 213.8M | 131.6M |
| SG&A % of Revenue | - | 33.5% | 38.1% | 48.11% | 47.98% | 53.24% | 34.56% | 45.35% | 58.03% | 49.15% | 60.2% |
| Research & Development | 237.7M | 242.9M | 234.2M | 304.8M | 318.4M | 359.5M | 247.6M | 89.1M | 54.8M | 23.4M | 13M |
| R&D % of Revenue | - | 9.93% | 9.4% | 11.29% | 11.37% | 10.04% | 6.16% | 4.88% | 5.99% | 5.38% | 5.95% |
| Other Operating Expenses | 3.3M | 38M | 121.4M | 132.6M | 462.4M | 1.17B | 4.5M | 1.2M | -300K | 0 | 0 |
| Operating Income | 261.3M | 186.2M | -36.2M | -529M | -1.2B | -2.73B | -187.8M | -80.7M | -202.2M | -47.5M | -70.7M |
| Operating Margin % | 10.65% | 7.61% | -1.45% | -19.59% | -42.75% | -76.32% | -4.67% | -4.42% | -22.1% | -10.92% | -32.34% |
| Operating Income Growth % | - | 614.36% | 93.16% | 55.81% | 56.21% | -1355.8% | -132.71% | 60.09% | -325.68% | 32.81% | - |
| EBITDA | 313M | 243.4M | 53.5M | -420.2M | -1.07B | -2.59B | -124M | -40.5M | -180.5M | -40.9M | -67M |
| EBITDA Margin % | 12.75% | 9.95% | 2.15% | -15.56% | -38.31% | -72.34% | -3.08% | -2.22% | -19.73% | -9.4% | -30.65% |
| EBITDA Growth % | 321.27% | 354.95% | 112.73% | 60.83% | 58.6% | -1989.68% | -206.17% | 77.56% | -341.32% | 38.96% | - |
| D&A (Non-Cash Add-back) | 51.7M | 57.2M | 89.7M | 108.8M | 124.3M | 142.8M | 63.8M | 40.2M | 21.7M | 6.6M | 3.7M |
| EBIT | 268.1M | 186.9M | 18.9M | -396.4M | -734.7M | -2.77B | -183.4M | -66.4M | -193.9M | -47.5M | -70.7M |
| Net Interest Income | -84.5M | -87.3M | -101.8M | -77.4M | -70.7M | -40.7M | -6.9M | 16.2M | 7M | -300K | -300K |
| Interest Income | 37.4M | 36.5M | 32.7M | 35.1M | 26.4M | 2.3M | 7.9M | 18.2M | 8.7M | 0 | 0 |
| Interest Expense | 121.9M | 123.8M | 134.5M | 112.5M | 97.1M | 43M | 14.8M | 2M | 1.7M | 300K | 300K |
| Other Income/Expense | -115.1M | -123.1M | -79.4M | -22.7M | -60.9M | -74.1M | -10.4M | 12.3M | 6.8M | -300K | -400K |
| Pretax Income | 146.2M | 63.1M | -115.6M | -551.7M | -1.26B | -2.81B | -198.2M | -68.4M | 195.6M | -47.8M | -71.1M |
| Pretax Margin % | 5.96% | 2.58% | -4.64% | -20.43% | -44.93% | -78.39% | -4.93% | -3.75% | 21.38% | -10.99% | -32.53% |
| Income Tax | 700K | -100K | 3.4M | 200K | 3.7M | 19.6M | -9.2M | 3.3M | -100K | 100K | 0 |
| Effective Tax Rate % | 0.48% | -0.16% | -2.94% | -0.04% | -0.29% | -0.7% | 4.64% | -4.82% | -0.05% | -0.21% | 0% |
| Net Income | 145.5M | 63.2M | -118.9M | -551.9M | -1.26B | -2.83B | -189M | -71.6M | -195.5M | -47.9M | -71.1M |
| Net Margin % | 5.93% | 2.58% | -4.77% | -20.44% | -45.06% | -78.94% | -4.7% | -3.92% | -21.37% | -11.01% | -32.53% |
| Net Income Growth % | 239.64% | 153.15% | 78.46% | 56.26% | 55.38% | -1396.14% | -163.97% | 63.38% | -308.14% | 32.63% | - |
| Net Income (Continuing) | 145.5M | 63.2M | -119M | -551.9M | -1.26B | -2.83B | -189M | -71.7M | -195.7M | -47.9M | -71.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.28 | 0.13 | -0.30 | -1.51 | -3.64 | -8.74 | -0.64 | -0.32 | -0.88 | -0.21 | -0.30 |
| EPS Growth % | 204.88% | 143.33% | 80.13% | 58.52% | 58.35% | -1265.63% | -100% | 63.64% | -319.05% | 30% | - |
| EPS (Basic) | - | 0.14 | -0.30 | -1.51 | -3.64 | -8.74 | -0.64 | -0.32 | -0.88 | -0.21 | -0.30 |
| Diluted Shares Outstanding | 525.44M | 521.15M | 390.04M | 365.55M | 346.67M | 322.37M | 293.89M | 220.95M | 277.76M | 233.55M | 233.55M |
| Basic Shares Outstanding | 441.82M | 435.79M | 390.04M | 365.55M | 346.67M | 322.37M | 293.89M | 220.95M | 277.76M | 233.55M | 233.55M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying PTON stock.
For fiscal year 2026, Peloton Interactive, Inc. (PTON) reported total revenue of $2.45B. This represents a 1018.9% increase compared to $218.6M in 2017.
Peloton Interactive, Inc. (PTON) is profitable, generating $63.2M in net income for the fiscal year ending 2026 with a net profit margin of 2.6%.
Peloton Interactive, Inc. (PTON) reported an operating income of $186.2M, resulting in an operating profit margin of 7.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Peloton Interactive, Inc. (PTON) generated $1.29B in gross profit for the year, representing a gross profit margin of 52.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue stagnation and demand softness
Metrics are mathematically derived from official filings.
Revenue Plateau Amidst Stabilization
Peloton's revenue has stabilized around $600M quarterly, with the latest quarter showing 0.1% growth, a marked improvement from the -13.1% decline in 2025Q3, according to recent financial statements.
The revenue trajectory has flattened after a period of sharp contraction, with the last three quarters hovering between $550.8M and $656.5M. The modest growth in 2026Q4 suggests that the demand reset may be bottoming out, but the lack of acceleration indicates that the company has not yet found a new growth catalyst. The sequential decline from 2026Q2 to 2026Q4, despite seasonal strength, implies that hardware sales remain under pressure, and the subscription base may be maturing.
Gross Margin Expansion Signals Mix Shift
Gross margin improved to 56.7% in 2026Q4, up from 43.2% in 2024Q3, as reported in the income statement, reflecting a favorable mix shift toward higher-margin subscription revenue and cost discipline.
The gross margin expansion of over 1300 basis points over the past two years is a clear sign that the company is successfully transitioning to a more asset-light model, with subscription revenue now dominating the profit pool. However, the sustainability of this margin level depends on the company's ability to maintain hardware pricing power and avoid discounting, which has historically eroded margins. The divergence between hardware and subscription margins remains a key swing factor, and investors should monitor whether the company can sustain this margin trajectory without sacrificing subscriber growth.
Operating Leverage Emerges from Cost Cuts
Operating income swung from a -$146.2M loss in 2024Q3 to a positive $81.1M in 2026Q4, as per the latest financial data, indicating that the cost restructuring is now translating into operating leverage.
The dramatic improvement in operating margin from -20.4% to 13.3% over the same period is a testament to the aggressive cost-cutting measures, particularly in SG&A, which has been reduced from $323.3M to $199.7M. This suggests that the company has reached a scale where its fixed cost base is now adequately covered by revenue, but the leverage is fragile given the flat revenue growth. The operating income is now highly sensitive to any revenue decline, as the cost structure has been optimized for the current revenue level.
Profitability Marred by SBC and One-Time Items
Net income turned positive at $61.6M in 2026Q4, but stock-based compensation of $43.0M, as disclosed in the financials, suggests that reported earnings overstate cash profitability.
While the company has achieved its first full year of net profitability, the quality of these earnings is questionable given the significant SBC expense, which is a non-cash charge but dilutes shareholders. The SBC expense in 2026Q4 alone represents nearly 70% of net income, indicating that cash earnings are substantially lower than reported. Additionally, the undisclosed EPS for the quarter and the mixed guidance raise concerns about the durability of this profitability, as it may be partly driven by one-time cost savings or restructuring gains.
SG&A Discipline Drives Margin Recovery
SG&A expenses have been cut from $323.3M in 2024Q3 to $199.7M in 2026Q4, a 38% reduction, as per the income statement, which is the primary driver of the operating margin turnaround.
The cost reduction is not just in SG&A; R&D has also been trimmed from $76.8M to $57.0M, indicating a company-wide focus on efficiency. However, the sustainability of these cuts is uncertain, as they may have been achieved by reducing marketing spend, which could impact future subscriber acquisition. The company's ability to maintain this cost discipline while investing in content and technology will be critical to preserving the improved margins.
2026Q4 Marks Profitability Inflection
The 2026Q4 quarter represents a pivotal inflection point, with operating income of $81.1M and net income of $61.6M, the highest in the provided data, signaling a potential structural shift to profitability.
This quarter is the culmination of a two-year restructuring effort, transitioning from a hardware-heavy, high-cost model to a more streamlined, subscription-focused business. The fact that this profitability was achieved despite flat revenue growth underscores the impact of cost discipline. However, the forward guidance of $545M-$565M for the next quarter implies a sequential decline, which could test the durability of this inflection. If the company can maintain profitability even with lower revenue, it would confirm that the cost structure is now fundamentally aligned with the revenue base.
Sustainability of Profitability in Question
Despite the recent profitability, the -1.8% revenue growth and mixed guidance suggest that the earnings turnaround may be driven by cost cuts rather than demand recovery, as per the latest financial reports.
Short-sellers would argue that the company's profitability is not sustainable because it is not supported by top-line growth. The revenue decline in the upcoming quarter, as guided, could push the company back into losses if the cost structure cannot be flexed further. Additionally, the high SBC expense and the potential for inventory write-downs or restructuring charges could erode earnings quality. The market's skepticism is reflected in the valuation, which implies that investors are not convinced that this is a durable turnaround. The key risk is that the company may need to reinvest in growth, which could reverse the margin gains.