Peloton Q2 2026 earnings: losses narrow and profit outlook rises as subscribers keep declining

February 5, 2026 · Published August 7, 2026

Peloton's revenue and subscribers kept shrinking, but cost cuts narrowed its loss and pushed the company to raise its full-year profit outlook.

Figures as reported by the company to the SEC for the quarter ended December 31, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.

Key takeaways

• Revenue came in at $656.5 million, down 3% from the same quarter a year earlier, as the company continues to lose subscribers even as it raises prices.
• Paid Connected Fitness subscriptions fell to about 2.66 million, down 214,000 (7%) year over year, though the total was slightly above the top end of the range the company had guided to.
• Monthly member cancellations (churn) ticked up to 1.9%, about half a percentage point higher than a year ago, but management said that was better than feared given a subscription price increase that took effect October 1.
• Even with lower revenue, profitability improved: adjusted EBITDA (operating profit before certain non-cash and one-time costs) rose 39% year over year to $81 million, and the net loss narrowed to $38.8 million from a larger loss a year earlier.
• The company’s roughly 52% gross margin over the trailing year means it keeps about half of every sales dollar after direct product and content costs, giving it room to absorb the ongoing revenue declines while still cutting its losses.
• Peloton raised its full-year profitability outlook, now expecting adjusted EBITDA of $450 million to $500 million for the fiscal year, up from a prior forecast of $425 million to $475 million.
• At the same time, it trimmed its full-year revenue outlook to $2.4 billion to $2.44 billion, about 3% below last year at the midpoint, and guided to further declines in both revenue and subscribers for the current quarter.
• CEO Peter Stern said he would “not be satisfied until this company is back to healthy, sustained top line growth,” acknowledging that recent improvement in the pace of revenue declines is “not enough,” while pointing to completed $100 million in run-rate cost savings and a goal of positive operating income for the full fiscal year.
• Peloton shares fell sharply after the report as investors weighed the continued subscriber and revenue erosion against the improved profit picture.

Q2 2026 in context

Figures for the quarter ended Dec 2025 and the quarter ended Dec 2024, as reported to the SEC.

How the stock took it

Peloton Interactive Inc closed at $5.91 on Feb 4, 2026, the last session before the report, and at $4.63 on Feb 6, 2026, the first session after it — -21.7% across the report.

Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.

Financial history →

Sources: company report · earnings call · StockStory