Peloton Interactive (NASDAQ: PTON) Reports Strong Q1 2027 Revenue and Free Cash Flow

• Peloton's Q1 2027 revenue of $559.2 million surpassed estimates, driven by subscription price increases and lower recall costs.
• Adjusted earnings per share showed mixed reports, with Zacks highlighting $0.19 per share beating estimates, while Benzinga reported the same $0.19 per share below a different consensus.
• Despite a 9% decline in paid connected fitness subscriptions, subscription revenue grew 3% to $410.7 million, and free cash flow surged 113% to $143 million.

Peloton Interactive (NASDAQ: PTON) sells connected exercise equipment and subscriptions to workout classes. Goldman Sachs maintained its Buy rating on the stock, which traded at $5.66 when the update was posted.

Peloton reported fiscal first-quarter 2027 revenue of $559.2 million, up from $550.8 million a year earlier. As highlighted by Zacks, revenue beat its consensus estimate by 0.62%. Subscription price increases, lower recall costs and favorable tariff effects helped the quarter’s results.

Profit estimates differed across reports. As highlighted by Zacks, adjusted earnings of $0.19 per share beat its $0.11 consensus estimate and rose from $0.03 a year earlier. Benzinga reported earnings of $0.19 per share below a $0.23 consensus estimate. Peloton’s GAAP net income rose to $96 million from $14 million.

Subscriptions remained Peloton’s largest revenue source. Subscription revenue grew 3% to $410.7 million, while connected fitness products revenue fell 3% to $148.5 million. Ending paid connected fitness subscriptions declined 9% to 2.475 million, showing that higher subscription revenue came despite fewer subscribers.

Peloton maintained its full-year outlook, which projects a revenue decline at the midpoint of its guidance range. The company also reported $143 million in free cash flow, up 113%. Free cash flow is the cash left after spending on operations and long-term assets; it gives Peloton funds to use for needs such as paying down debt.