Peloton’s Financial Struggles Continue in Q2 2026
Peloton, the trailblazing fitness equipment brand known for its exercise bikes and treadmills, reported disappointing second-quarter results for fiscal 2026. The company’s revenue and subscriber base continue to face declines, impacting its market performance.
Q2 Financial Highlights
In its recent quarterly earnings report, Peloton revealed a loss of $0.09 per share, worse than analysts’ projection of a $0.05 loss. Revenue fell to $656.5 million, a 3% decline year-over-year, missing Wall Street estimates of $675.6 million. This figure also fell $8 million short of the company’s previously announced guidance.
One of the most alarming metrics was a 7% drop in paid subscriptions compared to the prior year, reflecting an ongoing pattern of declining engagement. The decrease in subscriptions is partly attributed to a price increase for its subscription services, implemented in October 2025, which seems to have driven customers away.
The Pandemic Growth Cycle Ends
Peloton experienced massive growth during the height of the pandemic in 2020 when home fitness equipment sales skyrocketed. However, as gyms reopened and competition intensified, the company has struggled to hold onto its subscribers. This marks the third consecutive annual decline in subscribers, signaling efforts to sustain growth remain insufficient.
Lower Revenue Guidance for Fiscal 2026
Looking ahead, Peloton offered a dim projection. For Q3 2026, the company estimates revenue between $605 million and $625 million, below analysts’ expectation of $637.8 million. Its full-year revenue guidance has also been reduced to a range of $2.4 billion to $2.44 billion, down from the previously anticipated $2.48 billion. Paid connected fitness subscriptions are projected to decline further, with estimates landing between 2.65 million and 2.675 million for the quarter.
A Silver Lining?
Despite the challenging landscape, Peloton did raise its adjusted EBITDA guidance for the fiscal year to $450 million-$500 million, up from $425 million-$475 million. If achieved, this would set a new high for EBITDA since the company went public in 2019. Peloton also reiterated its free cash flow target of at least $275 million, and total gross margins are expected to hold at approximately 53% for the full year.
What’s Next for Peloton?
Peloton’s efforts to refresh its product lineup and implement innovative strategies have yet to show significant returns. While Wall Street analysts maintain a Moderate Buy rating for the stock, with an average price target of $9.28 (representing a potential 57% upside), the company must reverse its customer loss trends to regain its footing in the competitive fitness tech market.
If you’re a fitness enthusiast or looking for at-home workout options, consider Peloton’s Bike+, designed for interactive virtual classes and fitness tracking. Featuring an intuitive touchscreen, this product is perfect for busy professionals wanting to stay fit in their downtime.
Conclusion
Peloton’s Q2 2026 earnings underscore a critical period for the fitness giant. While there are opportunities for profitability, the company must address falling subscriptions and reignite customer interest to secure its future in the fitness industry.
