Peloton (PTON) Q2 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, February 5, 2026 astatine 9:05 AM CST 40 min read

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Thursday, Feb. 5, 2026 astatine 8:30 a.m. ET

• Chief Executive Officer — Peter Stern

• Chief Financial Officer — Liz Coddington

Peter Stern: Thanks, James. This quarter, we made important advancement connected our multiyear strategy of evolving Peloton Interactive, Inc. from a connected fittingness institution to a connected wellness company. An ambition anchored successful the societal displacement from a absorption connected lifespan to wellness span, Peloton Interactive, Inc.'s platform, equipment, and beloved marque presumption america to seizure much marketplace stock wrong the increasing $7 trillion planetary wellness system and to present ever greater quality impact. As I shared successful my yearly shareholder missive past month, our way guardant is focused connected expanding our enactment successful cardio positive strength, increasing our planetary commercialized footprint, and utilizing AI-driven personalization to assistance our members crossed a wider array of fittingness and wellness domains.

As we statesman the caller calendar year, we are much prepared for this improvement than ever, arsenic we person built a beardown fiscal foundation. Our outgo subject has enabled america to trim our nett indebtedness by 52% twelvemonth implicit year. The hard enactment we've done to amended our equilibrium expanse enables america to some put successful our semipermanent maturation and, arsenic the twelvemonth progresses, enactment successful spot an anticipated little outgo and much flexible superior structure. In the 2nd quarter, we unveiled a fig of breathtaking updates to our magic look of industry-leading equipment, intuitive bundle powered by AI, and unmatched quality instruction.

This included the Peloton cross-training series, our first-ever hardware portfolio refresh, Peloton IQ, our AI-powered personalized software, and caller instructors focused connected innovative strength, yoga, and pilates offerings. We launched each of this going into our highest vacation income period, which delivered 39% adjusted EBITDA maturation twelvemonth implicit twelvemonth successful Q2. We proceed to thrust higher margins and reduced operating expenses acknowledgment to our outgo restructuring efforts. This 4th besides highlighted the resilience of our subscription business, arsenic we enjoyed beardown subordinate retention. Churn was little than expected during a 4th with a terms increase, underscoring the precocious worth members spot connected our integrated experience.

Revenue for Q2 came successful beneath guidance, chiefly owed to less than expected instrumentality income of the cross-training bid to existing members. However, we were encouraged by the premix of existing members who purchased a caller class of equipment, arsenic much than 70% of cross-training bid instrumentality income to existing motorcycle owners were tread and enactment products. Our installed basal of instrumentality is rather durable, and subordinate restitution is highly high, arsenic evidenced by our consistently precocious nett promoter scores and debased churn. We judge these factors apt lend to a longer upgrade rhythm than we had anticipated.