Peloton Q3 Earnings Show Profit, Raise Guidance

Peloton Q3 earnings showed revenue slightly above expectations, a swing to GAAP profitability, and a raised FY2026 revenue and EBITDA outlook on May 7, 2026, while the company disclosed placement of its classes on Spotify's new fitness hub.

Quarter Results and Spotify Partnership

Peloton Interactive Inc. reported revenue of $630.9 million for the quarter ended March 31, 2026, slightly exceeding consensus estimates near $630 million. GAAP earnings per share reached $0.05, reversing a loss of $0.12 a year earlier but falling short of analyst expectations around $0.07 to $0.08. Adjusted EBITDA, a proxy for operating profit, rose 41% year over year to $126.2 million, up from $81 million in the prior quarter.

The company raised its full-year FY2026 revenue guidance to a range of $2.42 billion to $2.44 billion, with the midpoint implying roughly a 2% decline from the prior year. It set adjusted EBITDA guidance between $470 million and $480 million, representing an 18% increase at the midpoint. Management said the outlook assumes continued progress on cost restructuring, growth in equipment sales, and commercial partnerships, including the Spotify deal.

Peloton reported about 2.6 million paid memberships in the prior quarter, down roughly 7% year over year.

On April 27, 2026, Spotify introduced a fitness hub offering more than 1,400 Peloton on-demand classes to Premium subscribers at no extra charge. The classes, which require no specialized equipment, cover strength, cardio, yoga, and meditation. They support video playback on TVs, audio on phones and smart speakers, and offline downloads. Content is primarily in English, with select Spanish and German options. Instructors include Rebecca Kennedy, Ally Love, and Rad Lopez.

Spotify’s SEC filing shows 761 million monthly active users and 293 million Premium subscribers. About 70% of Premium subscribers work out monthly, and roughly 150 million fitness playlists are active globally. Peloton’s chief commercial officer, Dion Camp Sanders, said, "We've always believed that the best workout is the one you actually do, which is why accessing world-class fitness content should be as easy as tuning into your favorite Spotify playlist."

Neither company disclosed financial terms for the partnership, and Peloton did not attribute the guidance raise specifically to the Spotify deal. The company positioned the partnership as part of its broader turnaround strategy, while the near-term revenue and cost impact remains unquantified.