Peloton Q3 net income $26 million; raises full-year revenue and cash flow outlook
Peloton reported fiscal third-quarter 2026 results for the quarter ended March 31, 2026, with revenue up 1% year-over-year and GAAP net income of $26 million, compared with a net loss of $47.7 million a year earlier. The company raised the midpoint of its full-year revenue outlook and its expected free cash flow, but lowered its full-year gross margin outlook by 50 basis points.
Key points
- Q3 total revenue was $631 million, up $7 million or 1% year-over-year; GAAP net income was $26 million versus a $47.7 million loss a year earlier.
- Adjusted EBITDA was $126 million, up 41% year-over-year; free cash flow was $151 million, up 59%.
- FY26 revenue outlook is $2.42 billion to $2.44 billion, with the midpoint raised; free cash flow is expected to be about $350 million, up $75 million from the prior minimum target.
- FY26 total gross margin outlook of about 52.5% is 50 basis points lower than the prior outlook; Q3 gross margin of 51.9% was 210 basis points below guidance due to promotional activity.
The filing
Written by AI on Nov 8, 2026, 1:49 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on May 07, 2026.
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