Peloton Earnings Miss After Weak Holiday Quarter
Peloton earnings missed Q2 FY2026 as subscriptions fell and the company lowered Q3 revenue guidance, heightening downside risk and pressuring shares.
KEY TAKEAWAYS
- Q2 revenue was $656.5 million, down 3.0% year over year and missing estimates.
- GAAP loss per share was -$0.09 versus a -$0.06 consensus.
- Q3 revenue guidance was lowered to $605-$625 million, below the $638 million street forecast.
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Peloton Interactive (PTON) reported weaker-than-expected Q2 FY2026 results in a pre-market release on Feb. 5, 2026 (ET). The earnings report showed revenue and earnings per share (EPS) below estimates, leading the company to lower its Q3 revenue guidance. The report also highlighted declining subscriptions and soft demand for its reworked hardware.
Quarter Results and Outlook
Peloton’s Form 8-K filed on Feb. 5 showed Q2 FY2026 revenue of $656.5 million, down 3.0% year-over-year and below analyst estimates. The company posted a GAAP loss per share of $0.09, missing the consensus of a $0.06 loss. It set Q3 revenue guidance between $605 million and $625 million, below the $638 million expected by analysts.
On the earnings call, management said it expects higher EBITDA (a proxy for operating profit) and free cash flow in fiscal 2026. The company cited cost controls, margin improvements, subscription-price increases, and expanded commercial sales as drivers of the anticipated improvement.
Subscriptions and Product Demand
Peloton subscriptions fell to their lowest level in more than four years, a decline the company said materially contributed to the revenue shortfall. Demand for the reworked hardware remained weak after the company overhauled its product lineup and raised prices on both devices and subscriptions. Management acknowledged it missed internal sales targets for the quarter.
CFO Departure and Filings
The Form 8-K disclosed that Chief Financial Officer Liz Coddington will leave the company effective March 27, 2026. The filing stated there was no disagreement over financial disclosures and no severance under the plan. Peloton said it is searching for a successor.
