Peloton operates as a leading global fitness and wellness company, bringing integrated fitness and wellness experiences to Members anytime, anywhere, through a portfolio of Connected Fitness Products, subscription services, and original content. The company serves approximately 5.5 million Members ¹ as of June 30, 2026, across the United States, United Kingdom, Canada, Germany, Australia, and Austria, and its Commercial Business Unit serves customers in over 60 countries ². The industry is highly competitive, with competition based on brand recognition, product quality, price, and innovation, and the company faces significant competition from at-home fitness equipment and content, fitness clubs, in-studio fitness classes, health and wellness apps, GLP-1s, and other weight-management treatments, as well as within the commercial fitness market.

The company believes its combination of best-in-class equipment, integrated software, human coaching, and fitness community provides a competitive advantage versus traditional fitness and wellness products and services. Primary competitors include producers of at-home fitness equipment and content, health and wellness apps, in-studio fitness classes, fitness clubs, and commercial fitness equipment manufacturers. The principal competitive factors include total cost, supply chain efficiency, enhanced products and services, original content, product quality and safety, competitive pricing, product innovation, strength of sales and marketing strategies, technological advances, and brand awareness and reputation.

Peloton generates revenue through two primary segments: Connected Fitness Products and Subscription. Connected Fitness Products revenue comes from sales of hardware including the Peloton Original Series, Cross Training Series, Pro Series, and Precor Products, along with related accessories, delivery and installation services, extended warranty and other service agreements, and branded apparel. Subscription revenue is generated from monthly or annual membership fees through Paid Connected Fitness Subscriptions and Paid App Subscriptions, including All-Access Membership, Rental Membership, Peloton Pro Subscription, App+ Membership, App One Membership, Strength+ Membership, and Breathwrk Membership. The company sells products directly to customers through a multi-channel sales platform including e-commerce, inside sales, retail stores, third-party retailers, and its Commercial Business Unit.

The Connected Fitness Products portfolio includes the Peloton Original Series (Original Bike, Original Bike+, Original Tread, Original Tread+, Original Row), the Peloton Cross Training Series launched in October 2025 (Cross Training Bike, Cross Training Bike+, Cross Training Tread, Cross Training Tread+, Cross Training Row+), the Peloton Pro Series launched in October 2025 (Bike+ Pro, Tread+ Pro, Row+ Pro), and Precor Products (Precor Cardio, Precor Strength, Connected Fitness Solutions, and Wellness Solutions). The Cross Training Series introduces features such as rotating HD touchscreens, movement-tracking cameras powered by Peloton IQ for real-time form correction, repetition tracking, and weight suggestions, three-speed fans, Sonos-tuned speakers, and hands-free control. The Pro Series is a refreshed portfolio of commercial-ready Peloton-branded products. Precor Products include treadmills, ellipticals, stair climbers, adaptive motion trainers, exercise bikes, selectorized and plate loaded strength equipment, functional trainers, benches and racks, and wellness solutions including sauna and red light products and contrast therapy.

Subscription offerings include the All-Access Membership providing full library access across Peloton hardware and apps, the Rental Membership for Original Bike+ rental with bundled monthly pricing, the Peloton Pro Subscription for Pro Series equipment, and Paid App Subscriptions including App+ Membership, App One Membership, Strength+ Membership, and Breathwrk Membership. In July 2025, the company discontinued both the sale of Peloton Guide and the offering of Guide Memberships to new Members, though it continues to support existing Guide Memberships. The company produces content in three languages: English, German, and Spanish, and is creating a class library featuring subtitling and dubbing in multiple languages.

In October 2025, the company launched the Cross Training Series and the Peloton Pro Series. In fiscal 2026, the company launched Peloton IQ (including Personalized Plans, Performance Estimates, Weekly Insights, and Personalized Recommendations), instructed self-paced Strength workouts, the new Member recognition program Club Peloton, and integrated remote personal training with certified human trainers. The company also launched Official Peloton Teams and a new Social Feed. In November 2025, in collaboration with the CPSC and Health Canada, the company announced a voluntary recall of certain Original Series Bike+ units in the U.S. and in Canada. In June 2025, the company launched Peloton Repowered, an equipment and accessories resale marketplace. As of June 30, 2026, the company held 205 U.S.-issued patents ³ and had 103 U.S. patent applications pending ⁴, and held 577 issued patents in foreign jurisdictions ⁵ and 98 patent applications pending in foreign jurisdictions ⁶. The company also held 50 registered trademarks in the United States ⁷ and 979 registered trademarks in foreign jurisdictions ⁸.

In fiscal year 2026, total revenue was $2,355.5 million ⁹, compared to $2,531.5 million ¹⁰ in fiscal 2025 and $2,702.5 million ¹¹ in fiscal 2024. Net income was $109.0 million ¹² in fiscal 2026, compared to a net loss of $(392.0) million ¹³ in fiscal 2025 and a net loss of $(1,052.0) million ¹⁴ in fiscal 2024. Diluted net income per share was $0.24 ¹⁵ in fiscal 2026, compared to diluted net loss per share of $(1.05) ¹⁶ in fiscal 2025 and diluted net loss per share of $(2.87) ¹⁷ in fiscal 2024. Connected Fitness Products revenue was $1,023.0 million ¹⁸ in fiscal 2026, down from $1,196.0 million ¹⁹ in fiscal 2025 and $1,346.0 million ²⁰ in fiscal 2024. Subscription revenue was $1,332.5 million ²¹ in fiscal 2026, compared to $1,335.5 million ²² in fiscal 2025 and $1,356.5 million ²³ in fiscal 2024. Gross profit was $1,011.0 million ²⁴ in fiscal 2026, compared to $1,019.0 million ²⁵ in fiscal 2025 and $1,010.0 million ²⁶ in fiscal 2024. Operating income was $83.0 million ²⁷ in fiscal 2026, compared to an operating loss of $(393.0) million ²⁸ in fiscal 2025 and an operating loss of $(1,058.0) million ²⁹ in fiscal 2024.

The company's strategy depends on successfully scaling revenue across multiple channels, product categories, and customer segments, including in commercial markets and in the broader connected wellness and recovery space. The company is expanding into the commercial fitness market through its Commercial Business Unit, which brings together Precor's trusted relationships, global operations, and commercial solutions with Peloton's Connected Fitness technology, premium design, and content. The CBU serves several key verticals including Commercial Clubs, Hospitality, Multi-Family Residential, Corporate, Education, and Government, with a range of Connected Fitness, Strength, Cardio, Wellness and engagement-based solutions, including the Peloton Pro Series. The company also intends over time to expand its operations to other countries, which may require significant resources and management attention.

The company continues to pursue growth through new product introductions, including the Cross Training Series and Pro Series launched in October 2025, and through new subscription offerings such as Peloton IQ, Strength+, and Breathwrk. The company is also expanding through third-party retail partnerships with retailers including Amazon, Dick's Sporting Goods, Johnson Fitness & Wellness, John Lewis & Partners, Fitshop, and MediaMarkt. The company has substantially reduced its legacy retail showroom footprint and is transitioning to smaller-format micro-stores and third-party retail partnerships. The company is also pursuing growth through programs such as Peloton Rental, Peloton Certified Refurbished, and Peloton Repowered, which help keep products and materials in use for longer and create new opportunities for Members to access the platform.

The company continues to take actions intended to address the short-term health of the business as well as long-term objectives, including restructuring initiatives announced in 2022, 2024, and 2025. These measures are subject to known and unknown risks and uncertainties, including whether the company has targeted the appropriate areas for cost-saving efforts and at the appropriate scale. The restructuring plans have required, and may continue to require, a significant amount of management's and other employees' time and focus. The company's ability to achieve and maintain future profitability and positive free cash flow is subject to numerous risks and uncertainties.

The company utilizes a combination of in-house manufacturing and global sourcing with third-party manufacturing partners, with contract manufacturers' primary facilities located in Taiwan, China and Thailand. The company uses a combination of leased and operated, as well as contracted third-party logistics providers in its logistics and service network, primarily including middle mile and last mile operations centers in the United States, the United Kingdom, Canada, Germany, and Australia. The company has outsourced its cloud infrastructure to third-party providers and relies on last mile partners for delivery and installation of products. The company has increased its reliance on third-party Member support partners.

The company's research and development organization consists of engineering, product, and design teams that seek to continuously improve Connected Fitness Products and Peloton Apps through frequent software updates, iterations of feature enhancements, and innovations. The company uses artificial intelligence and machine learning to power proprietary personalization and discovery models across all software platforms. The company continues to invest in the Peloton Apps to create a more social experience. The company's ability to attract and retain highly skilled personnel, including engineers with experience in hardware development, software design, and artificial intelligence and machine learning, is critical to its future success.

The company faces significant headwinds from changes in trade policies in the U.S. and internationally, including the imposition of tariffs. On February 20, 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Powers Act, and the company has submitted its IEEPA tariff refund claim. While IEEPA tariffs are no longer effective, the company is currently subject to Section 122 tariffs of 10%. On April 2, 2026, the President issued a presidential proclamation that removed fitness equipment from the scope of Section 232 tariffs on steel and aluminum, so as of April 6, 2026, the steel and aluminum content in Connected Fitness Products is no longer subject to Section 232 tariffs of 50%. A significant portion of the company's hardware is produced outside the U.S., including in Taiwan, China and Thailand, and certain equipment and apparel is currently subject to tariffs. The USTR is conducting multiple investigations under Section 301 and has proposed tariff rates of 10% to 12.5% following its investigation into forced labor practices.

The company faces risks from macroeconomic conditions including inflation, changes in consumer spending, recession, and rising interest rates that could affect demand for its products and services. The company has experienced reduced consumer demand in recent quarters, partially contributing to a decrease in Connected Fitness Products Revenue relative to prior year periods. The company's sensitivity to economic cycles and any related fluctuation in consumer demand could have an adverse effect on its business. The company also faces risks related to foreign currency exchange rate fluctuations, as it transacts in foreign currencies such as the Euro, Canadian Dollar and U.K. Pound Sterling, and certain manufacturing agreements provide for fixed costs in Taiwanese dollars with payment in U.S. dollars based on the then-current spot rate.

Management's message emphasizes the company's position as a leading global fitness and wellness company that empowers people to live fit, strong, long, and happy by bringing integrated fitness and wellness experiences to Members anytime, anywhere. The company reported net income of $109.0 million ³³ in fiscal year 2026, compared to significant operating losses in prior periods. Management's strategic priorities include successfully executing the business strategy including the commercial strategy, achieving and maintaining future profitability and positive free cash flow, attracting and maintaining subscribers, and successfully executing restructuring initiatives and cost-saving measures including the 2025 Restructuring Plan which has been substantially implemented. The company is focused on scaling revenue across multiple channels, product categories, and customer segments, including in commercial markets and in the broader connected wellness and recovery space, and on anticipating consumer preferences and successfully developing and offering new or updated products and services in a timely manner.

Total revenue was $2,355.5 million ³⁴ in fiscal 2026, compared to $2,531.5 million ³⁵ in fiscal 2025 and $2,702.5 million ³⁶ in fiscal 2024. Net income was $109.0 million ³⁷ in fiscal 2026, compared to a net loss of $(392.0) million ³⁸ in fiscal 2025 and a net loss of $(1,052.0) million ³⁹ in fiscal 2024. Diluted net income per share was $0.24 ⁴⁰ in fiscal 2026, compared to diluted net loss per share of $(1.05) ⁴¹ in fiscal 2025 and diluted net loss per share of $(2.87) ⁴² in fiscal 2024. Operating income was $83.0 million ⁴³ in fiscal 2026, compared to an operating loss of $(393.0) million ⁴⁴ in fiscal 2025 and an operating loss of $(1,058.0) million ⁴⁵ in fiscal 2024. Gross profit was $1,011.0 million ⁴⁶ in fiscal 2026, compared to $1,019.0 million ⁴⁷ in fiscal 2025 and $1,010.0 million ⁴⁸ in fiscal 2024. Connected Fitness Products segment revenue was $1,023.0 million ⁴⁹ in fiscal 2026, down from $1,196.0 million ⁵⁰ in fiscal 2025 and $1,346.0 million ⁵¹ in fiscal 2024. Subscription segment revenue was $1,332.5 million ⁵² in fiscal 2026, compared to $1,335.5 million ⁵³ in fiscal 2025 and $1,356.5 million ⁵⁴ in fiscal 2024. As of June 30, 2026, the company had total indebtedness of approximately $1.3 billion ⁵⁵, of which $350.0 million ⁵⁶ was the 5.50% Convertible Senior Notes due 2029, and approximately $100.0 million ⁵⁷ of available borrowing capacity under its revolving credit facility. The company had cash and cash equivalents of $679.5 million ⁵⁸ as of June 30, 2026, compared to $702.5 million ⁵⁹ as of June 30, 2025.

The company has incurred operating losses in the past and may not sustain profitability, having reported net income of $109.0 million ³⁰ in fiscal 2026 after significant prior losses. The company's ability to attract and retain Subscriptions is critical, and a decline in Subscription levels could have an adverse effect on business, financial condition, and operating results. The company faces significant risks from changes in trade policies, including current Section 122 tariffs of 10% ³¹ and the potential for additional tariffs under Section 301 investigations with proposed rates of 10% to 12.5% ³², with a significant portion of hardware produced outside the U.S. in Taiwan, China and Thailand. The company relies on a limited number of suppliers and contract manufacturers, with most primary facilities located in Taiwan, China and Thailand, and a loss of any key partner could negatively affect the business. The company has identified material weaknesses in internal control over financial reporting in prior periods, and failure to maintain effective controls could impair the ability to produce timely and accurate financial statements.