Peloton (PTON) earnings Q3 2026

peloton On Thursday, it announced fiscal third-quarter earnings results that beat Wall Street expectations on revenue but fell slightly short on earnings per share.

The company announced that better-than-expected equipment sales and subscription revenue helped boost its sales and profitability, and free cash flow rose nearly 60%.

“The first thing with earnings is to report how you’re doing financially, and we think this was a pretty good quarter in terms of where we are strategically,” CEO Peter Stern told CNBC.

Here’s how the company performed in the quarter ending March 31, compared to Wall Street expectations, according to a survey of analysts by LSEG:

• Earnings per share: 7 cents expected versus 6 cents
• Revenues: $630.9 million while the expectation was $617.6 million

The company’s net income for the quarter was $26.4 million, or 6 cents per share, compared to a loss of $47.7 million, or 12 cents per share, in the same period a year ago. Sales reached $630.9 million, up about 1% from $624 million a year earlier.

Peloton said it forecast total revenue for the full fiscal year to be between $2.42 billion and $2.44 billion, removing the lower end of the guidance range it provided last quarter.

The company saw revenue from connected fitness subscriptions fall to $202.9 million from $205.5 million a year earlier, but beat estimates of $196 million, according to StreetAccount. Subscription revenue also beat estimates, rising 2% year over year to $428 million.

However, the number of paid connected fitness subscribers dropped year over year to 2.66 million.

The connected fitness company had been struggling with weak performance and stagnant sales and had previously predicted that performance would extend into this quarter. It has tried to revamp its product assortment and recently raised prices on both equipment and subscription plans.

Stern said the company thought the price changes were appropriate.

“We’re really sensitive to the fact that people are feeling stress in this economic environment and that it’s really affecting different people in different ways,” Stern told CNBC. “That said, we think the price changes we made in Q2 are timely. Since we’ve previously made any changes to our subscription prices, we’ve added a tremendous amount of value over the following three or four years.”

Peloton is also inking new partnerships and trying new strategies to win back customers. Last month, Peloton announced a deal. SpotifyIt makes more than 1,400 Peloton classes available to Spotify Premium subscribers. It also launched its first Bike and Tread products for high-traffic gym floors in March.

Stern added that the company had already included the Spotify deal in its revenue guidance because it had been in the works “for a long time.” Peloton also doesn’t count Spotify users among its subscribers.

“We’re really excited about our deal with Spotify, which allows us to reach Peloton members in many more countries while also providing high-margin revenue for us,” said Stern.