PTON · PELOTON INTERACTIVE, INC.
10-Q filed 2026-05-07 period 2026-03-31
70 Stable
confidence high · source filing on SEC.gov ↗
- Net income turned positive to $26.4 million for the quarter ended March 31, 2026, compared to a net loss of $(47.7) million in the prior year period, driven by restructuring and cost-saving measures.
- Free cash flow improved to $150.5 million for the quarter, supported by strong operating cash flow of $152.7 million and minimal capital expenditures of $2.2 million.
- Paid Connected Fitness Subscriptions declined to 2.662 million from 2.880 million in the prior year period, despite subscription price increases boosting subscription gross margin to 71.1%.
Filing Health Score pillars
Profitability 25%
65
According to the Results of Operations section, total revenue grew slightly by 1.1% to $630.9 million for the three months ended March 31, 2026, while net income turned positive to $26.4 million from a loss of $(47.7) million in the prior period, demonstrating improved operating leverage.
Balance sheet 20%
55
As shown in the Condensed Consolidated Balance Sheets, cash and cash equivalents of $1,126.3 million is slightly below total debt of $1,299.4 million, and while the current ratio improved to 2.49, total outstanding shares increased by approximately 6.5% over the nine-month period.
Cash generation 20%
85
Based on the Condensed Consolidated Statements of Cash Flows and Key Operational Metrics, operating cash flow of $152.7 million for the quarter significantly exceeded net income of $26.4 million, and low capital expenditures of $2.2 million resulted in a strong free cash flow of $150.5 million.
Risk flags 20%
75
As discussed in the Restructuring and Voluntary Recall sections of MD&A, risks include ongoing restructuring execution with estimated remaining charges of $20.0 million and the financial impact of the Original Series Bike+ recall, though the recall accrual was reduced to $7.2 million.
Mgmt signal 15%
70
According to the Overview and Restructuring sections of MD&A, management is executing on cost-saving initiatives to achieve $100.0 million in run-rate savings, but subscriber counts continue to decline with Paid Connected Fitness Subscriptions down to 2.662 million.
Key metrics (Three Months Ended March 31, 2026)
net income: $26.4 million
cash and equivalents: $1,126.3 million
total debt: $1,299.4 million
shares outstanding: 432,757,166
revenue: $630.9 million
period: Three Months Ended March 31, 2026
operating cash flow: $152.7 million
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.