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Peloton Reports Strong Revenue Growth Despite Earnings Miss

Photo by Andrew Valdivia / Unsplash

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.

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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