Peloton (PTON) Stock Rises 4% After Revenue Beat and Raised Guidance

TLDR

• Peloton stock rose 4.23% in pre-market trading after Q3 results
• Revenue of $631 million beat estimates of $618.7 million, up 1% year-over-year
• EPS of $0.06 missed the $0.07 analyst consensus
• Adjusted EBITDA surged 41% year-over-year to $126 million
• Full-year revenue outlook narrowed and raised to $2.42–$2.44 billion

Peloton (PTON) stock climbed 4.23% in pre-market trading on Thursday after the company posted Q3 results that beat on revenue but missed on earnings.

Peloton Interactive, Inc., PTON

Revenue came in at $631 million for the quarter ended March 31, topping analyst expectations of $618.7 million. That’s a 1% increase from $624 million in the same period last year.

On the bottom line, adjusted EPS landed at $0.06, falling $0.01 short of the $0.07 consensus estimate. GAAP net income was $26.4 million, a sharp turnaround from a net loss of $47.7 million in the year-ago quarter.

The revenue beat was driven by stronger-than-expected Connected Fitness equipment sales across both the Peloton and Precor brands, which include live and on-demand workout content.

Paid subscriptions ended the quarter at roughly 2.7 million, down 7.6% from a year earlier.

Profitability Metrics Strengthen

Adjusted EBITDA hit $126 million, up 41% year-over-year from $89 million. That’s one of the cleaner numbers in the report.

Free cash flow came in at $151 million, a 59% jump from the prior-year quarter. Net debt dropped 70% year-over-year to $173 million.

Full-Year Guidance Gets a Lift

For fiscal 2026, Peloton raised the low end of its annual revenue guidance. The new range is $2.42 billion to $2.44 billion, tightened from the prior range of $2.40 billion to $2.44 billion.

The midpoint of $2.43 billion sits just above the analyst consensus of $2.429 billion.

Peloton also raised its free cash flow target to approximately $350 million, up $75 million from its previous minimum target.

Adjusted EBITDA guidance of $470 million to $480 million remained unchanged. The midpoint represents 18% year-over-year growth.

The Q3 results mark a continued shift in Peloton’s financial position, with net debt now at $173 million compared to levels significantly higher a year ago.

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