PTON · PELOTON INTERACTIVE, INC.
10-K filed 2026-08-06 period 2026-06-30
66 Stable
confidence high · source filing on SEC.gov ↗
- Peloton achieved a turnaround to positive net income of $63.2 million in FY26, compared to a net loss of $(118.9) million in FY25, driven by aggressive cost-cutting and restructuring.
- Ending Paid Connected Fitness Subscriptions fell 8.8% to 2.553 million, and Paid App Subscriptions fell 8.9% to 0.503 million, indicating ongoing demand challenges.
- The company is navigating new Section 301 tariffs of 10% to 12.5% effective July 2026, while continuing to resolve its voluntary Original Series Bike+ recall.
vs. prior filing (10-Q filed 2026-05-07)
FHS 70 → 66 (-4) · Stable -> Stable
Profitability +0Balance sheet +0Cash generation +0Risk flags -5Mgmt signal -20
Filing Health Score pillars
Profitability 25%
65
Although total revenue declined 1.8% to $2,446.0 million, Peloton achieved positive operating income of $160.7 million and net income of $63.2 million in FY26, driven by improved gross margins and reduced operating expenses (Item 7, Results of Operations).
Balance sheet 20%
55
Peloton's current ratio is strong at 2.84, but total debt remains high at $1,299.1 million compared to cash of $1,206.6 million, and interest coverage is tight at 1.30x (Item 8, Consolidated Balance Sheets and Statements of Operations).
Cash generation 20%
85
Operating cash flow of $387.6 million significantly exceeded net income of $63.2 million, and Free Cash Flow reached $377.6 million (15.4% margin) due to low capital expenditures of $9.9 million and working capital improvements (Item 7, Key Operational and Business Metrics).
Risk flags 20%
70
The company has effective internal controls and no going-concern language, but faces risks from new Section 301 tariffs of 10% to 12.5% and ongoing product recall costs, including $13.5 million incurred for the Bike+ recall in FY26 (Item 1A, Risk Factors and Item 7, Restructuring/Voluntary Recall).
Mgmt signal 15%
50
Management successfully executed the 2025 Restructuring Plan to achieve profitability, but subscriber metrics continue to decline, with Paid Connected Fitness Subscriptions down 8.8% YoY and churn rising to 1.7% (Item 7, Key Operational and Business Metrics).
Key metrics (FY2026)
period: FY2026
total debt: $1,299.1 million
cash and equivalents: $1,206.6 million
shares outstanding: 422,802,650 Class A shares and 15,836,724 Class B shares
revenue: $2,446.0 million
net income: $63.2 million
operating cash flow: $387.6 million
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.