Peloton Announces Q2 FY2026 Financial Results

Core Insights - Peloton Interactive, Inc. reported significant year-over-year improvements in profitability while pursuing an ambitious innovation agenda, raising its full-year FY2026 adjusted EBITDA guidance to between $450 million and $500 million [1][3]. Financial Highlights - For Q2 FY2026, Peloton achieved a 39% year-over-year growth in adjusted EBITDA, reaching $81 million, which was $6 million above the high end of the guidance range [7][3]. - Total revenue for Q2 FY2026 was $657 million, a decrease of $17 million or 3% year-over-year, primarily due to lower-than-expected Connected Fitness product sales [7][9]. - The company reduced its net debt by 52% year-over-year, demonstrating operational discipline alongside innovation [3][7]. Business Highlights - Peloton introduced the Cross Training Series, which received positive reviews and features advanced computer vision capabilities [8]. - The integrated Commercial Business Unit launched the Peloton Pro Series for fitness facilities, achieving double-digit revenue growth year-over-year [8]. - Member engagement with Peloton IQ, an AI-powered personalized guidance tool, showed promising results, with nearly half of active members utilizing it [8]. User Metrics - Ending paid connected fitness subscriptions were reported at 2.661 million, a decrease of 214,000 or 7% year-over-year [7][15]. - Average workout time per connected fitness subscription increased by 7% year-over-year [8]. - The average net monthly paid connected fitness subscription churn rate rose to 1.9%, reflecting a 50 basis point increase year-over-year [15]. Outlook - For Q3 FY26, the company expects ending paid connected fitness subscriptions to be between 2.650 million and 2.675 million, representing an 8% year-over-year decrease at the midpoint [12]. - Total revenue for Q3 is projected to be in the range of $605 million to $625 million, indicating a 1% year-over-year decrease at the midpoint [12]. - The full-year FY26 total revenue outlook is between $2.40 billion and $2.44 billion, reflecting a 3% year-over-year decrease at the midpoint [13].