Peloton Q1 revenue rises 2%, slightly beats estimates
Overview
US fitness equipment maker's Q1 FY2027 revenue rose 2%, slightly beating analyst expectations
Adjusted EBITDA for Q1 FY2027 increased 42% year-over-year
Paid connected fitness subscriptions fell 9% year-over-year, at top of guidance range
Outlook
Peloton sees Q2 revenue between $625 mln and $650 mln, down 3% year-over-year at midpoint
Company expects Q2 paid Connected Fitness Subscriptions of 2.425 mln to 2.445 mln, down 9% year-over-year at midpoint
Peloton maintains full-year revenue outlook of $2.3 bln to $2.4 bln, down 4% year-over-year at midpoint
Result Drivers
HIGHER GROSS MARGIN - Co said total gross margin rose to 61.3% in Q1, driven in part by nonrecurring benefits
COMMERCIAL BUSINESS GROWTH - Co said commercial business unit revenue grew double digits year-over-year in Q1
Company press release: Full Story
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Slight Beat* | $559 mln | $553.72 mln (15 Analysts) |
Q1 Gross Margin | 61.30% |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the recreational products peer group is "buy."
Wall Street's median 12-month price target for Peloton Interactive, Inc. is $7.00, about 28.2% above its November 4 closing price of $5.46
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 21 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)