Peloton posts Q1 2027 earnings beat, strong cash flow and debt reduction
Peloton Interactive reported fiscal Q1 2027 adjusted earnings of $0.19 per share, beating consensus by $0.08, and revenue of $559.2 million, slightly above estimates. Free cash flow surged 113% year‑over‑year to $143 million and adjusted EBITDA rose 42% to $168 million, while gross margin expanded to 61.3%. The company cut its gross principal debt by roughly $500 million and kept its full‑year revenue outlook at $2.3 billion‑$2.4 billion, with Q2 guidance of $625 million‑$650 million.
Why it matters
The earnings beat and cash‑flow strength lifted Peloton’s pre‑market share price by about 6‑7%, giving investors immediate upside. Maintaining guidance while reducing debt improves the balance sheet and may support future financing, as noted by analysts who kept Buy ratings and set price targets of $6.50 (Goldman Sachs) and $10 (UBS).
Key facts
- 1Adjusted earnings per share were $0.19, $0.08 above the Wall Street consensus of $0.11. investing.com
- 2Revenue was $559.2 million, edging past the $554.6 million estimate. investing.com
- 3Free cash flow increased 113% year‑over‑year to $143 million. investing.com
- 4Adjusted EBITDA climbed 42% to $168 million. investing.com
- 5Gross margin expanded to 61.3%. investing.com
- 6Subscriptions fell 9% year‑over‑year to 2.475 million. investing.com
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.