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Peloton Posts Its First Full Year of Profit, Even as Its Subscriber Base Keeps Shrinking
Fiscal 2026 results show $63.2 million in net income alongside an 8.8% drop in paid Connected Fitness subscriptions, and guidance points to another year of shrinking revenue.
By THRYV Life Desk·Published August 27, 2026·Updated August 27, 2026·4 min read
Fitness · Illustration commissioned for THRYV. Photography is replaced with original imagery as each story is produced.
The takeaway
Peloton reported $63.2 million in net income for fiscal 2026, its first full year of profitability, even as paid Connected Fitness subscriptions fell 8.8% year-over-year to 2.55 million. Revenue held roughly flat at $2.45 billion, and the company forecasts sales could decline again in fiscal 2027 as it prioritizes profitability over subscriber growth.
Peloton posted its first full year of GAAP net profitability in fiscal 2026, reporting $63.2 million in net income for the year, even as the company's subscriber base kept shrinking. The results, released August 6, 2026, show a business that has gotten smaller but more efficient rather than one that's growing again.
The numbers
Full-year revenue: $2.446 billion, essentially flat and about $6 million above the company's own guidance
Q4 revenue: $607.7 million, flat year-over-year
Adjusted EBITDA: $468.2 million for the year, up 16% year-over-year
Free cash flow: $377.6 million, up 17% year-over-year
Net debt: $93 million, down 80% year-over-year
Subscribers keep leaving
Paid Connected Fitness subscriptions — the core Bike and Tread subscriber base — ended the year at 2.553 million, down 8.8% (about 247,000 subscribers) from a year earlier. Paid App subscriptions fell 9% to roughly 503,000. Total membership across all tiers was about 5.5 million, down 8% year-over-year, with average monthly churn of 2.2% in the fourth quarter.
We delivered our first full year of net profitability while maintaining the financial discipline to strengthen our core capabilities.
Peter Stern, CEO, Peloton
What's next
Peloton's guidance for fiscal 2027 points to another year of shrinking revenue — a projected $2.3 billion to $2.4 billion, down roughly 4% at the midpoint — alongside continued growth in Adjusted EBITDA, targeted at $475 million to $525 million, and free cash flow of at least $350 million. In other words, the company is signaling it plans to keep prioritizing profitability and cost discipline over chasing new subscribers.
What it means for members
The earnings report doesn't announce any pricing or product changes for current members. It reflects the company's overall financial results, not a specific consumer-facing update.
Sources
This article is original writing by THRYV. We link to primary reporting and official documents rather than reproducing them.
Written and edited in-house by the THRYV Life Desk. We do not republish or reword agency copy, and we do not invent quotes, statistics, testimonials or ratings. Where figures move frequently, we point you to the primary release rather than printing a number that will be out of date. Advertising and affiliate partnerships have no influence on our reporting — see our editorial standards, fact-checking policy and affiliate disclosure. Spotted an error? Write to newsroom@thryv-news.com.
General information only. Not personalised financial, medical or legal advice.
The boutique-fitness franchisor's revenue fell 13% and same-store sales dropped nearly 7% in the second quarter, prompting a cut to full-year guidance.
