What Peloton reported
Peloton Interactive reported $559.2 million of consolidated revenue for the three months ended 30 September 2026, up 1.5% from $550.8 million a year earlier. Subscription revenue rose 3.1% to $410.7 million, while connected-fitness product revenue fell 2.6% to $148.5 million.
GAAP net income was $96.2 million, compared with $13.9 million in the prior-year quarter. Operating cash flow was $146 million and the company reported $143 million of free cash flow, a non-GAAP measure. Ending paid connected-fitness subscriptions were 2.475 million, down 9% year on year.
| Company-wide metric | Q1 FY2027 | Year-on-year signal |
|---|---|---|
| Total revenue | $559.2m | +1.5% |
| Subscription revenue | $410.7m | +3.1% |
| Product revenue | $148.5m | −2.6% |
| Paid connected-fitness subscriptions | 2.475m | −9% |
| GAAP net income | $96.2m | $13.9m prior year |
The quality-of-profit check
The 10-Q matters because the headline gross-margin jump was not purely operational. Peloton said refunds of previously paid U.S. IEEPA tariffs reduced connected-fitness product cost of revenue during the quarter. It also benefited year on year from costs recorded for the Bike+ seat-post recall in the comparative period. The company itself described the quarter's gross margin as partly driven by nonrecurring benefits.
ShreddedAF read
Peloton has improved cash generation and reduced debt, but a turnaround is not the same thing as renewed subscriber growth. The cleanest reading is split: the income statement and balance sheet are stronger, while the installed paid connected-fitness base is still contracting. Management's Q2 guide of 2.425–2.445 million ending subscriptions implies that pressure continues.
The figures are consolidated company metrics in U.S. dollars. Peloton says it serves members across the United States, United Kingdom, Canada, Germany, Australia and Austria, but the release does not provide a country-by-country subscriber split. A subscription is also not necessarily a unique person or a piece of equipment.