Peloton Interactive, Inc.
Connected Fitness Equipment & Digital Subscription ServicesFounded 2012- Updated June 2026
Reviewed by Swet Parvadiya
Last reviewed: June 2026
CorpDigest
Peloton Interactive, Inc.
Financial Performance
Last reviewed: June 2026 · By Swet Parvadiya
Revenue
$2.49B
Market Cap
$2.5B
Employees
2,145
The single most disorienting financial fact about Peloton is that it posted $4.02 billion in revenue in fiscal year 2021 and $2.49 billion in fiscal year 2025 — a 38% contraction — while also improving its gross margin and reducing its net loss to $118.9 million. The company has been simultaneously shrinking and becoming more financially disciplined. Subscription revenue of $1.67 billion carries margins that hardware cannot match. The connected fitness products segment managed a 13.6% gross margin in FY2025, an 870 basis point improvement that reflects both cost reductions and the gradual absorption of Precor-related overhead. These are operational gains that matter more than the revenue headline. The music licensing lawsuit with the National Music Publishers Association, which originally sought up to $370 million, resulted in $49.3 million in settlement and litigation costs recorded in a single fiscal quarter. That was a defined, finite hit. The $420 million Precor acquisition sits differently on the ledger — an asset that added manufacturing capability the company no longer needed at the scale it anticipated, and that took years and significant restructuring charges to rationalize. Market capitalization of $2.52 billion against $2.49 billion in annual revenue creates an unusual frame: the company is now valued at roughly one times revenue, a multiple associated with businesses in distress or stasis, not with subscription platforms generating $1.67 billion in recurring revenue annually. Whether the market is pricing permanent decline or cyclical undershoot is the financial argument that surrounds every quarterly earnings call.
Revenue Trend Analysis
YoY Change
-7.8%
2-Year CAGR
-5.7%
Peak Year
2023
Trend
Declining Trend
Peloton Interactive, Inc. has reported revenue across 3 fiscal years, compounding at -5.7% annually over 2 years. The most recent year saw a 7.8% decline versus the prior year. Revenue peaked in 2023 at $2.8B. Out of 2 reported periods, 0 showed growth and 2 showed a decline.
| Fiscal Year | Revenue | YoY Change |
|---|---|---|
| FY2025 | $2.5B | -7.8% |
| FY2024 | $2.7B | -3.5% |
| FY2023 | $2.8B | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Peloton reported FY2024 (fiscal year ending June 30, 2024) revenue of approximately $2.7 billion and FY2025 revenue of $2.49 billion, both substantial declines from the FY2022 peak of roughly $3.6 billion and the post-pandemic high of $4.02 billion in FY2021. The revenue mix has continued to shift toward subscription: connected fitness products generated roughly $1.0 billion in FY2025 while subscription generated approximately $1.5 billion, a structural reversal from earlier years when hardware was the larger contributor. The financial highlight of FY2025 was the achievement of approximately $323.7 million in free cash flow — a positive milestone after years of cash burn that had peaked in FY2022. GAAP net loss continued at approximately $200-$300 million in FY2025, narrower than prior years but not yet profitable. Gross margin expanded materially as inventory write-downs from prior periods unwound, subscription mix grew, and operating cost reductions from the workforce cuts took full effect. The cumulative effect of the McCarthy-era turnaround and the early Stern-era priorities has been to transform Peloton from a cash-burning growth company into a cash-flow positive but slow-growth turnaround story.
Peloton recorded more than $1.3 billion of cumulative inventory write-downs across FY2022 and FY2023 as post-pandemic demand collapsed while supply chains continued to deliver inventory ordered during the boom. FY2022 included a $439 million inventory charge as the company recognized that excess bikes and treads could not be sold at original prices, and FY2023 added further inventory write-offs as price cuts (the Bike dropped from $2,495 to $1,445) made remaining inventory worth less than its carrying value. Beyond inventory, the Peloton Output Park Ohio manufacturing facility — purchased in 2021 with the intention of building US manufacturing capacity — was abandoned in fiscal 2024 at significant write-down, and the Precor acquisition assets were impaired. Cumulative goodwill, asset, and inventory charges across FY2022 through FY2024 totaled several billion dollars and were the single largest contributor to GAAP net losses that totaled more than $4 billion across those three years. The write-down cycle has now largely completed, allowing the gross margin in FY2025 to reflect closer-to-normal economics, and creating the financial baseline against which the Stern-era turnaround will be measured.
Peloton carried approximately $1.9 billion of debt at the end of FY2025, materially up from the pre-pandemic period and reflecting capital raises during and after the 2020-2021 demand surge. The structure includes 0% convertible notes maturing in 2026 (approximately $1.0 billion) issued during the period when the equity was trading near its peak — meaning the conversion price is well above the current share price, leaving the notes likely to be repaid in cash. A 5.5% Term Loan B was added in 2022, and the company executed a debt refinancing in May 2024 to extend maturities and address the 2026 convertible maturity, issuing new debt and refinancing existing facilities. Liquidity stood at approximately $880 million at FY2025 end. The debt level constrains strategic flexibility — meaningful M&A is limited, and the cost of debt service consumes a portion of the cash flow that the turnaround has generated — but the FY2025 free cash flow of $323.7 million provides the basis for management's stated plan to service and gradually reduce leverage rather than refinance the entire structure.
Peloton's market capitalization reached approximately $50 billion at the January 2021 peak when shares traded at $171, briefly making the company more valuable than Ford. By mid-2024 the equity had fallen below $2 billion of market capitalization at $4-$5 per share, an approximately 96% decline that ranks among the most severe destructions of pandemic-era growth valuation in any large-cap consumer company. The stock has recovered modestly through the McCarthy and Stern turnaround periods to roughly $2.5 billion of market capitalization at $6-$8 per share in late 2025. At current levels the equity trades at roughly 1.0x trailing revenue and an EV/Revenue multiple in line with mature consumer subscription businesses rather than the 10x+ multiple implied at peak. The valuation reflects investor consensus that Peloton is unlikely to return to growth-era multiples without renewed subscriber growth, that the company has transitioned successfully to free cash flow positive operations but remains GAAP-unprofitable, and that the Stern-era investments in Peloton IQ AI and Cross Training Series hardware will need to demonstrate measurable subscriber acceleration before the multiple can re-expand.
Using these figures? Please credit CorpDigest with a link.
CorpDigest. "Peloton Interactive, Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/peloton-interactive/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Peloton Interactive, Inc. reported $2B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/peloton-interactive/financials" target="_blank" rel="noopener">CorpDigest — Peloton Interactive, Inc. financials</a></div>