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.
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.
