Peloton Q3 fiscal 2026 earnings: back to a profit as equipment sales grow

May 7, 2026 · Published August 7, 2026

Peloton returned to profitability in the quarter ended March 2026, helped by stronger equipment sales and cost discipline, even as its subscriber base kept shrinking.

Figures as reported by the company to the SEC for the quarter ended March 31, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.

Key takeaways

• Revenue was roughly flat versus a year earlier (up about 1%), as growth in equipment sales — both Peloton-branded bikes and treadmills and commercial gear from its Precor brand — offset a continued decline in subscription revenue.
• Peloton swung from a net loss of about $48 million a year ago to net income of roughly $26 million this quarter, its per-share earnings moving from a loss to a small profit.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, a measure of operating cash profitability), rose about 41% from a year ago to roughly $126 million, a sign the core business is generating more cash even as revenue growth stays modest.
• Net debt fell about 70% year-over-year to roughly $173 million, as the company kept paying down what it owes.
• Paid connected-fitness subscriptions — the recurring memberships that make up most of Peloton’s profit margin — ended the quarter at about 2.66 million, down from a year earlier, though the pace customers are canceling (churn) improved slightly to 1.2% per month.
• The trailing-year revenue growth and return-on-equity figures on this page are still negative, a reminder that this quarter’s improvement follows several years of steep losses; the company’s net profit margin over the past year remains thin, under 1% of revenue.
• For the full fiscal year, Peloton nudged up its revenue outlook to a range of $2.42 billion to $2.44 billion and kept its adjusted EBITDA target at $470 million to $480 million, which it said would mark about 18% growth from the prior year at the midpoint.
• Management also guided to roughly $350 million of free cash flow for the full fiscal year and expects paid connected-fitness subscriptions to keep declining modestly next quarter, to a range of 2.55 million to 2.57 million.
• Shares jumped in early trading after the results, as investors focused on the return to profitability and improved cash generation despite the ongoing subscriber decline.

Q3 2026 in context

Figures for the quarter ended Mar 2026 and the quarter ended Mar 2025, as reported to the SEC.

How the stock took it

Peloton Interactive Inc closed at $5.20 on May 6, 2026, the last session before the report, and at $5.69 on May 8, 2026, the first session after it — +9.4% 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 · Yahoo Finance / Investing.com