Peloton Q2 revenue misses analyst expectations on few membership additions

Overview

• Fitness equipment maker's Q2 revenue fell 3% yr/yr, missing analyst expectations

• Adjusted EBITDA for Q2 rose 39% yr/yr, exceeding guidance

• Company launched Peloton Cross Training Series and expanded commercial unit

Outlook

• Peloton raises full-year FY2026 adjusted EBITDA guidance to $450 - $500 mln

• Company expects Q3 FY26 revenue between $605 mln and $625 mln

• Peloton forecasts Q3 FY26 gross margin of approximately 54%

Result Drivers

• SUBSCRIPTION CHURN - Better-than-expected churn rates following membership price increases, partially offset by lower gross additions

• CROSS TRAINING SERIES - Introduction of Peloton Cross Training Series with advanced features received positive reviews

• COMMERCIAL UNIT GROWTH - Integrated Commercial Business Unit achieved double-digit revenue growth year-over-year

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the recreational products peer group is "buy"

• Wall Street's median 12-month price target for Peloton Interactive Inc is $9.60, about 62.4% above its February 4 closing price of $5.91

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 95 three months ago

Press Release: ID:nGNX6syGCY

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.