Peloton Q3 Revenue Beats Estimates, Swings to Profit

Peloton Interactive reported third-quarter fiscal 2026 results on Thursday that beat revenue expectations but missed on earnings per share, swinging to profitability amid signs of financial improvement. The connected fitness company posted revenue of $630.9 million for the quarter ended March 31, surpassing analyst estimates of about $618 million and marking a 1 percent increase from $624 million a year earlier. Adjusted earnings came in at 6 cents per share, below the consensus forecast of 7 cents per share.

The results highlighted stronger-than-expected sales of Connected Fitness equipment from the Peloton and Precor brands, along with higher subscription prices. Peloton achieved net income of $26.4 million, reversing a $47.7 million loss from the prior-year period. Adjusted EBITDA rose 41 percent to $126.2 million, while free cash flow climbed 59 percent to $150.5 million. Net debt fell 70 percent year over year to $173 million, bolstering the company's balance sheet.

Paid Connected Fitness subscriptions ended the quarter at 2.662 million, down 7.6 percent from a year ago. Subscription revenue, however, grew 2 percent to $428 million and exceeded estimates.