Short answer
PELOTON INTERACTIVE, INC. (PTON) filed its fiscal 2026 10-K annual report with the SEC on Aug 6, 2026. It reported revenue of $2.4B (−1.8% year over year) and net income of $63M.
- Top risk flagged: Regulatory risk: U.S. Supreme Court invalidated IEEPA tariffs (Feb 20, 2026); exposure to Section 122 tariffs at 10% and uncertainty over tariff refunds
FY2026 key financial metrics · XBRL
- Revenue
- $2.4B
- −1.8% YoY
- Net income
- $63M
- +153.2% YoY
- Operating margin
- 6.6%
- +8.0 pp YoY
- Gross margin
- 52.6%
- +1.7 pp YoY
- EPS (diluted)
- $0.14
- +146.7% YoY
- ROE
- -45.2%
- −74.0 pp YoY
- Operating cash flow
- $388M
- +16.4% YoY
Source: XBRL data from the PELOTON INTERACTIVE, INC. (PTON) FY2026 10-K on SEC EDGAR. USD.
PELOTON INTERACTIVE, INC. FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business: Global fitness and wellness platform delivering integrated hardware, software, media, and Instructor-led content to 5.5 million Members worldwide
- New products: Launched Cross Training Series and Peloton Pro Series in Oct 2025 with rotating HD touchscreens, movement-tracking cameras, and enhanced features
- Strategic shift: Discontinued Original Tread, Tread+, and Row sales; focus shifted to new Cross Training and Pro Series targeting consumer and commercial markets
- Quantitative metric: Total employees 2,262 (1,736 U.S., 526 international) as of June 30, 2026, reflecting global operational scale
- Noteworthy fact: Introduced Peloton IQ AI-powered personalization and launched Peloton Rental program enabling bike rental with bundled membership access
Management Discussion & Analysis
- Revenue $2,446.0M, down 1.8% YoY; Connected Fitness Products $770.4M (-5.7%), Subscription $1,675.6M (+0.1%)
- Gross margin fell for Connected Fitness Products to 11.7% vs 13.6%, Subscription margin rose to 71.4% vs 69.1%
- Subscription segment best performing: gross profit $1,196.3M (+3.4%), Connected Fitness Products worst: gross profit $90.4M (-18.7%)
- Operating cash flow $387.6M (+16.4%), Free Cash Flow $377.6M (+16.8%); $199.0M 2026 Notes repaid, $9.9M capex, no dividends or buybacks reported
- Management highlights cost structure improvements via restructuring; key risks include trade tariffs, product recalls, and macroeconomic conditions impacting demand
Risk Factors
- Regulatory risk: U.S. Supreme Court invalidated IEEPA tariffs (Feb 20, 2026); exposure to Section 122 tariffs at 10% and uncertainty over tariff refunds
- Geopolitical risk: Supply chain concentration in Taiwan, China, Thailand; risk from regional trade disputes, hostilities, or natural disasters impacting contract manufacturers
- Operational risk: Sole reliance on single contract manufacturers with no qualified alternatives; disruptions or capacity issues may delay product delivery and increase costs
- Competitive risk: Intense competition from larger firms and emerging technologies like AI; competitors may launch superior or lower-cost fitness products and content faster
- Financial risk: Credit facility covenants require minimum liquidity $250M and subscription revenue $1.2B trailing four quarters, limiting operational flexibility and risk of default
Generated from the filing text; verify against the original. How to read a 10-K
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