Peloton Interactive, Inc. Q1 2027 Earnings Recap

Peloton rose 3.7% after reporting Q1 revenue above the midpoint of its guidance, subscriptions at the top end, and gross margin and adjusted EBITDA above expectations. The company also said it fully deleveraged its balance sheet on a net-debt basis, while cautioning that revenue growth may not remain linear as it laps prior-year price changes.

Key Takeaways

• Revenue exceeded the midpoint of guidance, marking Peloton’s third consecutive quarter of year-over-year revenue growth; management attributed some of that growth to price changes implemented last year.
• Subscriptions reached the top end of guidance, while gross margin and adjusted EBITDA substantially outperformed management’s expectations.
• Peloton said it fully deleveraged its balance sheet as measured by net debt.
• Commercial business revenue increased 13% year over year. Interest in the newly launched Commercial Series equipment has exceeded initial expectations, though the company cited trials and discussions rather than completed deployments.
• Management plans to launch hardware in a new category in fall 2027, but said revenue growth may not remain linear through FY27 as the company laps prior price changes.