Peloton Interactive reported fiscal first quarter 2027 revenue of $559.2 million, a 2% year-over-year increase that slightly exceeded expectations. While Adjusted EBITDA of $167.8 million significantly outperformed guidance, the company continued to face pressure in its core user base, with Ending Paid Connected Fitness Subscriptions falling 9% to 2.475 million. Management maintained its full-year 2027 guidance, emphasizing a transition toward a higher-margin financial profile and reduced debt levels.
Key Highlights
- Adjusted EBITDA of $167.8 million grew 42% year-over-year, coming in well above the midpoint of the company's $135 million to $145 million guidance range.
- Total gross margin expanded 975 basis points year-over-year to 61.3%, driven by disciplined cost management and certain nonrecurring benefits.
- Free cash flow reached $143.4 million, a 113% increase compared to the prior year, supporting a voluntary $280 million paydown of its term loan after the quarter's close.
- Gross principal debt outstanding has been reduced by 32% during calendar year 2026, falling to approximately $1.05 billion.