"Shares of Peloton Interactive ( NASDAQ:PTON) are climbing 11% to $5.76 in premarket trading on Thursday, May 7, after the connected fitness company posted a swing to GAAP profitability and lifted its full-year outlook. The bid follows an 8-K filed at 6:59 a.m. ET and an earnings call that began at 8:30 a.m. ET."
"Peloton reported Q3 FY2026 revenue of $630.9 million, topping the $617.76 million consensus by 2%. EPS of $0.06 came in below the $0.08 estimate, missing expectations. The marquee number is Peloton's swing to GAAP profitability. Net income of $26.4 million reversed a $47.7 million loss a year ago, while adjusted EBITDA jumped 41% to $126.2 million and free cash flow rose 59% to $150.5 million."
"Peloton also raised its full-year guidance. The company is now projecting FY26 revenue of $2.42 billion to $2.44 billion, adjusted EBITDA of $470 million to $480 million, and free cash flow of about $350 million, an increase of $75 million from prior targets. Peloton's balance sheet repair was just as striking. Net debt fell 70% to $173 million, giving Peloton meaningfully more financial flexibility."
"CEO Peter Stern stated, "With the announcement of the Peloton Commercial Series and the recent launch of our global Spotify Technology ( NYSE:SPOT | SPOT Price Prediction) partnership, we are accelerating our evolution into a comprehensive, global wellness ecosystem." The Spotify deal, announced April 27, places 1,400 P"
Peloton Interactive shares rose 11% in premarket trading after the company reported a swing to GAAP profitability and increased full-year outlook. The company posted Q3 FY2026 revenue of $630.9 million, slightly above consensus, while EPS of $0.06 missed expectations. Net income turned positive at $26.4 million versus a $47.7 million loss a year earlier, and adjusted EBITDA increased 41% to $126.2 million. Free cash flow rose 59% to $150.5 million. Full-year guidance increased to $2.42 billion to $2.44 billion revenue, $470 million to $480 million adjusted EBITDA, and about $350 million free cash flow. Net debt fell 70% to $173 million, improving financial flexibility. A Spotify partnership and commercial series were positioned as steps toward a global wellness ecosystem.
#peloton-interactive #earnings-and-guidance #gaap-profitability #free-cash-flow #spotify-partnership
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