Peloton Interactive, Inc. Revenue in 2025

Peloton Interactive, Inc. reported $2.5B in revenue for fiscal year 2025. This represents a decline of 7.8% compared to the 2024 figure of $2.7B.

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.