The fitness company swung to profitability after years of losses but guided for lower revenue in fiscal 2027.
Peloton reported its first full-year net income of $63.2 million for fiscal 2026, reversing a $118.9 million loss the prior year. The result marks a milestone for the company, which has struggled with declining demand and restructuring costs.
Revenue for the year ended June 30, 2026, totaled $2.446 billion, down from $2.491 billion in fiscal 2025. Paid connected fitness subscriptions fell 8.8% year-over-year to 2.553 million. Despite the revenue decline, the company projected adjusted EBITDA of $475 million to $525 million for fiscal 2027, up from $468.2 million.
Shares dropped 13% in premarket trading after Peloton forecast fiscal 2027 revenue of $2.3 billion to $2.4 billion, below analyst expectations of $2.42 billion. The company also set a free cash flow target of at least $350 million for the year.