Revenue growth remains stagnant at 1.1% in 2026Q3, though aggressive SG&A reductions from $378.9M in 2024Q2 to $202.9M have helped restore gross margins to 51.9%.
| Sales/Revenue | 2.45B | 2.49B | 2.7B | 2.8B | 3.58B | 4.02B | 1.83B | 915M | 435M | 218.6M |
| Revenue Growth % | -3.26% | -7.77% | -3.56% | -21.83% | -10.93% | 120.26% | 99.55% | 110.34% | 98.99% | - |
| Cost of Goods Sold | 1.17B | 1.22B | 1.49B | 1.87B | 2.88B | 2.57B | 988.2M | 531.4M | 245.4M | 144.7M |
| COGS % of Revenue | - | 49.08% | 55.29% | 66.89% | 80.5% | 63.84% | 54.12% | 58.08% | 56.41% | 66.19% |
| Gross Profit | 1.27B | 1.27B | 1.21B | 927.2M | 698.4M | 1.45B | 837.7M | 383.6M | 189.6M | 73.9M |
| Gross Margin % | 51.96% | 50.92% | 44.71% | 33.11% | 19.5% | 36.16% | 45.88% | 41.92% | 43.59% | 33.81% |
| Gross Profit Growth % | - | 5.04% | 30.23% | 32.76% | -51.98% | 73.62% | 118.38% | 102.32% | 156.56% | - |
| Operating Expenses | 1.14B | 1.3B | 1.74B | 2.12B | 3.43B | 1.64B | 918.4M | 585.8M | 237.2M | 144.6M |
| OpEx % of Revenue | - | 52.37% | 64.3% | 75.86% | 95.82% | 40.83% | 50.3% | 64.02% | 54.53% | 66.15% |
| Selling, General & Admin | 831.2M | 948.9M | 1.3B | 1.34B | 1.91B | 1.39B | 828.1M | 531M | 213.8M | 131.6M |
| SG&A % of Revenue | - | 38.1% | 48.11% | 47.98% | 53.24% | 34.56% | 45.35% | 58.03% | 49.15% | 60.2% |
| Research & Development | 241.7M | 234.2M | 304.8M | 318.4M | 359.5M | 247.6M | 89.1M | 54.8M | 23.4M | 13M |
| R&D % of Revenue | - | 9.4% | 11.29% | 11.37% | 10.04% | 6.16% | 4.88% | 5.99% | 5.38% | 5.95% |
| Other Operating Expenses | 3M | 121.4M | 132.6M | 462.4M | 1.17B | 4.5M | 1.2M | -300K | 0 | 0 |
| Operating Income | 134.7M | -36.2M | -529M | -1.2B | -2.73B | -187.8M | -80.7M | -202.2M | -47.5M | -70.7M |
| Operating Margin % | 5.51% | -1.45% | -19.59% | -42.75% | -76.32% | -4.67% | -4.42% | -22.1% | -10.92% | -32.34% |
| Operating Income Growth % | - | 93.16% | 55.81% | 56.21% | -1355.8% | -132.71% | 60.09% | -325.68% | 32.81% | - |
| EBITDA | 201.4M | 53.5M | -463M | -1.11B | -2.59B | -124M | -40.5M | -180.5M | -40.9M | -67M |
| EBITDA Margin % | 8.24% | 2.15% | -17.14% | -39.68% | -72.34% | -3.08% | -2.22% | -19.73% | -9.4% | -30.65% |
| EBITDA Growth % | 559.82% | 111.56% | 58.33% | 57.12% | -1989.68% | -206.17% | 77.56% | -341.32% | 38.96% | - |
| D&A (Non-Cash Add-back) | 66.7M | 89.7M | 66M | 85.9M | 142.8M | 63.8M | 40.2M | 21.7M | 6.6M | 3.7M |
| EBIT | 150.8M | 18.9M | -396.4M | -734.7M | -2.77B | -183.4M | -66.4M | -193.9M | -47.5M | -70.7M |
| Net Interest Income | -89M | -101.8M | -77.4M | -70.7M | -40.7M | -6.9M | 16.2M | 7M | -300K | -300K |
| Interest Income | 36.7M | 32.7M | 35.1M | 26.4M | 2.3M | 7.9M | 18.2M | 8.7M | 0 | 0 |
| Interest Expense | 125.7M | 134.5M | 112.5M | 97.1M | 43M | 14.8M | 2M | 1.7M | 300K | 300K |
| Other Income/Expense | -109.6M | -79.4M | -22.7M | -60.9M | -74.1M | -10.4M | 12.3M | 6.8M | -300K | -400K |
| Pretax Income | 25.1M | -115.6M | -551.7M | -1.26B | -2.81B | -198.2M | -68.4M | 195.6M | -47.8M | -71.1M |
| Pretax Margin % | 1.03% | -4.64% | -20.43% | -44.93% | -78.39% | -4.93% | -3.75% | 21.38% | -10.99% | -32.53% |
| Income Tax | 2M | 3.4M | 200K | 3.7M | 19.6M | -9.2M | 3.3M | -100K | 100K | 0 |
| Effective Tax Rate % | 7.97% | -2.94% | -0.04% | -0.29% | -0.7% | 4.64% | -4.82% | -0.05% | -0.21% | 0% |
| Net Income | 23.2M | -118.9M | -551.9M | -1.26B | -2.83B | -189M | -71.6M | -195.5M | -47.9M | -71.1M |
| Net Margin % | 0.95% | -4.77% | -20.44% | -45.06% | -78.94% | -4.7% | -3.92% | -21.37% | -11.01% | -32.53% |
| Net Income Growth % | 113.56% | 78.46% | 56.26% | 55.38% | -1396.14% | -163.97% | 63.38% | -308.14% | 32.63% | - |
| Net Income (Continuing) | 23.1M | -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 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.05 | -0.30 | -1.51 | -3.64 | -8.74 | -0.64 | -0.32 | -0.88 | -0.21 | -0.30 |
| EPS Growth % | 112.02% | 80.13% | 58.52% | 58.35% | -1265.63% | -100% | 63.64% | -319.05% | 30% | - |
| EPS (Basic) | - | -0.30 | -1.51 | -3.64 | -8.74 | -0.64 | -0.32 | -0.88 | -0.21 | -0.30 |
| Diluted Shares Outstanding | 433.31M | 390.04M | 365.55M | 346.67M | 322.37M | 293.89M | 220.95M | 277.76M | 233.55M | 233.55M |
| Basic Shares Outstanding | 421.05M | 390.04M | 365.55M | 346.67M | 322.37M | 293.89M | 220.95M | 277.76M | 233.55M | 233.55M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Hardware demand and churn
According to recent financial disclosures, Peloton's revenue growth remains largely stagnant or negative, with the most recent quarter showing a marginal 1.1% increase, highlighting the ongoing difficulty in reversing the post-pandemic demand decline across its core hardware and subscription segments in the North American market.
The company's inability to consistently grow revenue suggests that the primary market for connected fitness hardware may be reaching saturation. Investors should monitor whether the recent pivot toward third-party retail partnerships can effectively offset the structural decline in direct-to-consumer sales volumes.
As reported in quarterly filings, Peloton has managed to stabilize gross margins near the 51% level, a notable improvement from the 40.3% trough observed in 2024Q2, though this recovery appears heavily dependent on cost-cutting measures rather than organic pricing power or premium hardware demand.
The margin expansion suggests that management's efforts to optimize logistics and reduce manufacturing overhead are beginning to yield results. However, the reliance on discounting to clear inventory remains a persistent threat to maintaining these levels in a competitive leisure environment.
Based on the provided income statement data, Peloton has demonstrated improved operating leverage by aggressively reducing SG&A expenses from a peak of $378.9M in 2024Q2 to $202.9M in 2026Q3, which has allowed the company to return to positive operating income despite stagnant top-line performance.
This shift indicates a transition from a growth-at-all-costs strategy to a focus on operational efficiency. While this has successfully moved the company toward profitability, it warrants further investigation into whether these cuts are sustainable without compromising the brand's premium positioning and instructor-led content quality.
As evidenced by the historical data, Peloton's net income has been significantly impacted by fluctuating stock-based compensation and restructuring charges, with the most recent quarter showing a $26.4M profit, a sharp contrast to the substantial losses reported in previous periods like 2024Q3.
The inconsistency in bottom-line results suggests that investors should focus on adjusted metrics that strip out non-recurring items to gauge true operational health. The absence of stock-based compensation in the most recent quarter may indicate a change in compensation strategy that warrants closer scrutiny.
While recent profitability metrics appear improved, short-term gains may be undermined by the 'dormant bike' phenomenon, where the secondary market for used equipment potentially cannibalizes new unit sales and threatens the long-term growth of the high-margin subscription base, as suggested by recent revenue trends.
The market may be underestimating the risk that existing hardware owners will churn at higher rates as their equipment ages and becomes less integrated with newer software features. This potential for a shrinking subscriber base poses a significant challenge to the company's long-term valuation narrative.
Quick answers to the most common questions about buying PTON stock.
For fiscal year 2025, Peloton Interactive, Inc. (PTON) reported total revenue of $2.49B. This represents a 1039.4% increase compared to $218.6M in 2017.
Peloton Interactive, Inc. (PTON) reported a net loss of $118.9M for the fiscal year ending 2025.
Peloton Interactive, Inc. (PTON) reported an operating income of $-36.2M, resulting in an operating profit margin of -1.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Peloton Interactive, Inc. (PTON) generated $1.27B in gross profit for the year, representing a gross profit margin of 50.9%. This demonstrates the company's core pricing power and production efficiency.