Peloton Interactive, Inc. posted $96.2 million in net income for its first fiscal quarter as ending paid Connected Fitness subscriptions fell 9% year over year, even as revenue edged higher.
Revenue reached $559.2 million for the three months through Sept. 30, up from $550.8 million in the comparable year-earlier period, a 2% gain. Ending paid Connected Fitness subscriptions totaled 2.475 million, 9% below the year-earlier level.
Subscription revenue grew 3% to $410.7 million, while revenue from Connected Fitness Products slipped 3% to $148.5 million. Peloton's gross margin was 61.3%, an increase of 975 basis points; the company said nonrecurring benefits contributed to the improvement.
Adjusted EBITDA, Peloton's non-GAAP measure, increased 42% to $167.8 million, outpacing revenue growth. Net cash from operating activities climbed 103% to $145.7 million. Free cash flow, also a non-GAAP measure, totaled $143.4 million, up 113%.
A voluntary $280 million term-loan payment after Q1 left Peloton with $1.048 billion in gross principal debt, 32% below its level at the start of calendar 2026.
For its second fiscal quarter, Peloton forecast revenue of $625 million to $650 million and 2.425 million to 2.445 million ending paid Connected Fitness subscriptions. The subscription range represents a 9% year-over-year decline at the midpoint. The company maintained its fiscal 2027 revenue outlook at $2.30 billion to $2.40 billion, a 4% year-over-year decline at the midpoint.
Peloton filed a Form 8-K with the U.S. Securities and Exchange Commission on Nov. 5. The filing index lists Items 2.02, results of operations and financial condition, and 9.01, financial statements and exhibits, and counts 13 documents. It identifies the earnings release as Exhibit 99.1, alongside a graphic and XBRL data files.
