Peloton’s revenue for Q4 2025 exceeded company guidance ($571m-$586m) to reach $606.9 million. The bulk of it ($403.3m) came from subscriptions, which declined by 5 percent year-on-year.
Gross profit was $328.1 million, up 5 percent year-on-year, while total gross margin increased 560 bps to 54.1 percent – this too exceeded company guidance (50.3%).
Total operating expenses for the quarter were down 20 percent to $298.5 million. Adjusted Ebitda was $140 million.
Net debt has been decreasing quarterly since Q4 2024, when it stood at $802 million. At the end of Q4 2025, it stood at $459 million. Free cash flow has had ups and downs over the same period, but leapt up in Q2 2025 from $11 to $106 million. At the end of Q4, it was at $112 million.
Peloton has been operating at an annual loss since it began reporting figures in 2017. The loss for FY25 amounted to $118.9 million on revenue of $2.491 billion. This was an improvement of 78.4 percent from FY24’s loss of $551.9 million and of 90.6 percent from FY23’s loss of $1,261.7 million.
This month, Peloton announced a new restructuring plan to cut costs, smooth operations and establish profitability. It expects the plan to incur cash restructuring charges of $50.0 million and non-cash restructuring charges of $10.0 million while achieving $100 million in run-rate savings by the end of fiscal 2026. It monitors policy changes in international trade and tariffs.
For 2026, the company is looking to generate annual revenue of $2.4 to $2.5 billion with a year-on-year decline of 2 percent at the mid-point and a total gross margin of about 51.0 percent. Q1 revenue should range from $525.0 to $545.0 million with a total gross margin of about 52.0 percent.
