Peloton achieved profitability for the first time as a public company in fiscal 2026, reporting net income of $63.2 million for the year ended June 30, compared with a loss of $118.9 million in the prior-year period. The company attributed the turnaround partly to price increases implemented on hardware and subscription services in the previous fall. Chief Executive Peter Stern characterized the fiscal year as a “landmark” achievement that demonstrated the company’s maturation and financial strengthening.
Despite the profitability milestone, Peloton’s forward guidance disappointed the market, with shares declining nearly 13% in morning trading. The company projected fiscal 2027 sales would fall as much as 4%, forecasting revenue between $2.3 billion and $2.4 billion, below analyst expectations of $2.42 billion. The company did express confidence in maintaining positive free cash flow and anticipated gross margin and adjusted EBITDA growth compared with the prior year.
Fourth-quarter results showed net income of $61.6 million, or 13 cents per share, compared with $21.6 million or 5 cents per share a year earlier. Sales for the quarter rose slightly to $607.7 million from $606.9 million. Stern acknowledged that while profitability represented significant progress, the company remained challenged in driving hardware sales and maintaining subscriber engagement, with customer churn continuing to pressure growth.
Peloton is pursuing several strategic initiatives aimed at stabilizing its business. The company recently appointed Sarah Robb O’Hagan as chief content and member development officer to focus on member retention and engagement. Additionally, Peloton announced partnerships including a collaboration with Spotify and plans to launch commercial versions of its Bike and Tread equipment for gyms starting this fall, marking an expansion beyond its direct-to-consumer model.
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