Peloton Interactive : 3Q'26 Earnings Presentation (b63a5c)

Published: 2026-05-07 07:13:11 ET PTON

Published on 05/07/2026 at 07:13 am EDT

Disclaimer (cont'd)

NON-GAAP FINANCIAL MEASURES

This presentation includes references to non-GAAP financial measures, including Adjusted EBITDA, Trailing Twelve Months Adjusted EBITDA, Free Cash Flow, Trailing Twelve Months Free Cash Flow, Adjusted Operating Expenses, Adjusted Operating Expenses % of Total Revenue, Net Debt, Gross Principal Debt Outstanding, Net of Cash and cash equivalents, Gross Leverage Ratio, and Net Leverage Ratio. We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business. These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures should be read in conjunction with the Company's financial statements prepared in accordance with GAAP. The reconciliations of each non-GAAP financial measure to the corresponding GAAP measure should be carefully evaluated. See the Financial Appendix for reconciliations of historical non-GAAP financial measures included in this presentation to the nearest GAAP financial measure. We are not able to provide a reconciliation of these non-GAAP financial measures to their comparable GAAP financial measures on a forward-looking basis without unreasonable efforts including, because, of the inherent difficulties in forecasting certain amounts that affect Net income (loss) and Adjusted EBITDA, and Net cash provided by (used in) operating activities and Free Cash Flow. As a result, we do not believe that a GAAP reconciliation would provide meaningful supplemental information about our outlook.

Key Results

PE LOTON

Revenue

$631m

2.662m

Gross Margin

52%

Adj. EBITDA1

$126m

Free Cash FIow1

Connected Fitness

$151m

Subscriptions2

1% YoY

,§, 90 bps YoY

Below

41% YoY

In-line

-7.6% YoY

In-line

,§, 59Oé YoY

Above

(8605m-8625m guidance)

(54% guidance)

(8I20m-8I35m guidance)

(2.650m-2.675m guidance)

Non-GAAP measure. See Financial Appendix for reconciliation of GAAP to non-GAAP measures.

Ending Paid Connected Fitness Subscriptions

Renderings of Peloton Commercial Series, expected to be launched Q2 FY27.

PE LOTON

205

419

624

Q3 FY25

607

Q4 FY25

+1% YoY

152

398

199

408

551

Q1 FY26

657

244

413

Q2 FY26

631

203

428

Q3 FY26

($m)

Connected Fitness Products Revenue Subscription Revenue

PELOTON

51.0%

Q3 FY25

54.1%

Q4 FY25

+9O bpsYoY

51.5%

Q1 FY26

50.5%

Q2 FY26

51.9%

Q3 FY26

1. Beginning in Q1 FY26, the Company now assigns executive compensation and other corporate overhead costs associated with our corporate facilities to the various expense captions that these costs relate to. For a reconciliation of Total Gross Margin for Q3 FY25 and Q4 FY25 to the revised amounts inclusive of allocated overhead costs, refer to the reconciliation tables in the Financial Appendix.

Segment Adjusted Gross Margins

PE LOTON

Q3 Connected Fitness Products Adj. Gross Margin1

11.3%

Q3 Subscription Adj. Gross Margin1

71.1%

14.3%1

17.3%1

+7O bps YoY1

16.2%

6.9%

13.9%

11.3%

68.OOH

69.0%1

71.9%1

+310 bps YoY1

68.6%

72.1%

71.1%

03 FY25 O4FY25 01 FY26 02 FY26 03 FY26 O3 FY25 O4 FY25 O1 FY26 O2 FY26 O3 FY26

1. Beginning in Q1 FY26, the Company now assigns executive compensation and other corporate overhead costs associated with our corporate facilities to the various expense captions that these costs relate to. For a reconciliation of our reported segment gross margins to the Segment Adjusted Gross Margins for Q3 FY25 and Q4 FY25, refer to the reconciliation tables in the Financial Appendix.

PELOTON

Quarterly Adj. EBITDA/ Free Cash Flow1(âm)

140

118

151

126

Q3 FY25

Q4 FY25 Q1 FY26 Q2 FY26

Adjusted EBITDA Free Cash Flow

Q3 FY26

Quarterly TTM2 Adj. EBITDA/ TTM Free Cash FIow1($m)

334

404 429

466

401

Q3 FY25

Q4 FY25 Q1 FY26 Q2 FY26

Quarterly TTM Adj. EBITDA Quarterly TTM FCF

Q3 FY26

Balance Sheet

PE LOTON

14.Ox

11.lx deduction in Gross Leverage

Q3 Net Debt1

$173m

-$412m / -7OOâ YoY

6.2x

7.1x Reduction in Net Leverage

4.6x

3.8x

2.9x

1.9x

1.2x

3.6x

0.8x

2.9x

0.4x

Q3 Gross Leverage Ratio1

2.9x

-1.7x YoY

Q3 Net Leverage Ratio1

Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26

Gross Leverage Ratio Net Leverage Ratio

Non-GAAP measure. See Financial Appendix for reconciliation of GAAP to non-GAAP measures

-1.5x YoY

Ending Paid Connected Fitness Subscriptions

PE LOTON

Ending Paid Connected Fitness

Subscriptions(OOOs)1 2

Avg. Net Monthly Paid Connected Fitness Subscription Churn1

508

1,086

2,317

28% CAGR since FY19

2 917 2,998 2,976

2,800

2,662

1.2%

6bps

1.8%

-11bps

1.6%

-22bps

price adjustments

1.2%

1.9%

46bps

-7bP

FY19 FY20 FY21 FY22 FY23 FY24 FY25 Q3 FY26

Beginning January 1, 2025, the ComDany migrated its subscription data model for resorting Ending Paid Connected *itness Subscriptions and Average

Q3 FY25 Q4 FY25 Q1 FY26 Q2 FY26 Q3 FY26

Net Monthly Paid Connected *itness SubscriDtion Churn to a new data model that provides greater visibility to any change to a subscriDtion's payment status when it occurs. The new model gives the ComDany more precise and timely data on subscriDtion pause and churn behavior. Information prior to Q3 *Y25 has been revised to conform with the current period presentation. The impact of this change in the model on Ending Paid Connected *itness SubscriDtions and Average Net Monthly Paid Connected *itness Subscription Churn for the periods in *Y25 and prior is immaterial.

Beginning July 1, 2024, the ComDany no longer included paused Connected *itness subscriptions in Ending Paid Connected *itness Subscriptions and began treating a pause as a churn event in Average Net Monthly Paid Connected *itness SubscriDtion Churn. All figures above exclude paused Connected *itness Subscriptions. Please refer to the *Y2023 10-K for more information about this metric change.

Average Net Monthly Paid Connected Fitness Subscription Churn

YoY bps change

Outlook for Full Year FY26

PELOTON

Financial Results($m)

As Reported

Full Year FY26 Guide

% Change (Midpoint)

FY25

Low

High

YoY

Total Revenue

$2,491

$2,420

$2,440

-2%

Total Gross Margin1

50.9%

52.5Oo

160 bps

Adjusted EBITDA2

$404

$470

$480

18Oo

Free Cash FIow2

$324

-$350

User Metrics(m)

Ending Paid Connected Fitness Subscriptions

2.800

2.550

2.570

-8.6%

1 Beginning in the first ouarter of 2026, the Comoany now assigns executive compensation and other coroorate overhead costs associated with our corporate facilities to the various expense caDtions that these costs relate to. As a result, *Y26 Total Gross Margin guidance is inclusive of assigned overhead costs and is not comparable to prior periods. Additionally, the Company changed its measure of segment profitability to Segment Adjusted Gross profit, defined as Revenue less Adjusted Cost of revenue incurred by the segment, which is inclusive of allocated overhead costs, for all periods presented. *or a reconciliation of Total Gross Margin for *Y25 to the revised amount inclusive of allocated overhead costs, refer to the reconciliation tables in the section titled "Change in Segment Measure of Profitability "

Non-GAAP measure. See *inancial Appendix for reconciliation of GAAP to non-GAAP measures for *Y25.

Webcast Information PE LOTON

We will host a live call at 8:30 a.m. ET on Thursday, May 7, 2026 to discuss our financial results. To avoid delays, we encourage participants to register at least 15 minutes before the start of the call.

A live webcast of the call and our earnings presentation will be available at

, and a replay will be available on

the investor relations page of the Company's website for 30 days.

2026

Disclaimer

Peloton Interactive Inc. published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 11:12 UTC.