Peloton Interactive Inc. (NASDAQ:PTON) shares are trading higher Thursday after the company reported mixed first-quarter fiscal 2027 results before the market opened, affirmed its full-year revenue guidance and issued second-quarter revenue guidance.
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Peloton Misses on EPS but Beats on Revenue as Net Income Jumps to $96M
Peloton reported first-quarter earnings per share of 19 cents, missing the consensus estimate of 23 cents. It reported revenue of $559.0 million, up 2% from a year earlier and the third straight quarter of year-over-year growth, beating the consensus estimate of $553.721 million. GAAP net income rose to $96 million from $14 million a year earlier, and adjusted EBITDA rose 42% to $168 million. Free cash flow rose 113% to $143 million.
Subscription revenue rose 3% to $410.7 million, while connected fitness products revenue fell 3% to $148.5 million, and ending paid connected fitness subscriptions fell 9% to 2.475 million. Gross margin was 61.3%, up about 975 basis points, driven partly by nonrecurring benefits, according to the company.
"Our Q1 results underscore the strength of our business and reinforce the trajectory of our multi-year transformation," said Peter Stern, Peloton’s CEO and president.
Peloton Launches New Treadmills, Adds 10 Microstores, Cuts Debt By $280M
Peloton announced a new Tread lineup, including the Tread Flex, its first foldable treadmill, and new Peloton IQ features for runners, walkers and hikers. Commercial business revenue again grew double digits from a year earlier, and Peloton has opened ten more microstores since the start of the quarter, for a total of 19. After the quarter ended, Peloton voluntarily paid down $280 million of its term loan, which reduces gross principal debt to $1.048 billion, down 32% since the start of the calendar year.
Peloton Guides Q2 Above Estimates, Affirms Full-Year Revenue Outlook
Peloton expects second-quarter revenue of $625 million to $650 million, versus the consensus estimate of $633.889 million, and adjusted EBITDA of $85 million to $100 million. It affirmed its fiscal 2027 revenue guidance of $2.300 billion to $2.400 billion, versus the consensus estimate of $2.363 billion, and its adjusted EBITDA guidance of $475 million to $525 million.
Peloton Shares Rush Higher
PTON Price Action: At the time of publication, Peloton shares are trading 3.48% higher at $5.65, according to data from Benzinga Pro.
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