Peloton Interactive reported mixed third-quarter results on Thursday, with revenue beating Wall Street expectations despite a slight earnings miss.
The connected fitness company posted adjusted earnings of $0.06 per share for the quarter ended March 31, below analyst estimates of $0.07 per share. However, revenue climbed to $631 million, topping expectations of $618.74 million and marking a modest year-over-year increase.
Peloton beats estimates on revenue as higher subscription prices offer a boost https://t.co/HQcgcm1bDs
— CNBC (@CNBC) May 7, 2026
According to the report, stronger sales of Peloton and Precor fitness equipment helped drive revenue growth. The company also reported improving financial health, with adjusted EBITDA jumping 41% year over year to $126 million.
Peloton said free cash flow rose sharply to $151 million, while net debt dropped 70% compared to last year. The company also returned to profitability with net income of $26 million.
Investors appeared encouraged by stronger guidance for fiscal 2026, sending Peloton shares up more than 4% in premarket trading.
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