Peloton Q1 revenue rises 2%, slightly beats estimates
PTON•Peloton's Q1 FY2027 revenue rose 2% to $559 million, slightly above the $553.72 million analyst consensus, while adjusted EBITDA increased 42% year over year. Paid connected fitness subscriptions fell 9%; the company maintained its full-year revenue outlook of $2.3 billion to $2.4 billion.
1. Quarterly results
Peloton reported Q1 FY2027 revenue of $559 million, up 2% year over year and slightly above analyst expectations of $553.72 million. Adjusted EBITDA increased 42%, and total gross margin reached 61.3%, partly driven by nonrecurring benefits.
2. Subscriptions and outlook
Paid connected fitness subscriptions fell 9% year over year, at the top of the company's guidance range. Peloton expects Q2 revenue of $625 million to $650 million and 2.425 million to 2.445 million paid subscriptions, both down 9% year over year at the midpoint. It maintained its full-year revenue outlook of $2.3 billion to $2.4 billion, down 4% year over year at the midpoint.
3. Commercial business
Peloton said revenue in its commercial business unit grew by double digits year over year in Q1.
