Peloton Reports Strong Q2 Profitability, Raises FY26 EBITDA & FCF Guidance; CFO Liz Coddington to Depart

summarizeSummary

Peloton reported improved Q2 profitability and raised its full-year Adjusted EBITDA and Free Cash Flow guidance, while announcing the amicable departure of its CFO.

check_boxKey Events

• Strong Q2 Profitability

  Adjusted EBITDA increased 39% year-over-year to $81 million, exceeding guidance, and GAAP net loss significantly narrowed to $39 million.

• Raised FY26 Guidance for Profitability and Cash Flow

  Full-year Adjusted EBITDA guidance increased to $450-$500 million and the Free Cash Flow minimum target was raised to $275 million, indicating a strong focus on financial health.

• CFO Liz Coddington to Depart

  Chief Financial Officer Liz Coddington will step down effective March 27, 2026, to pursue an external opportunity. The company stated her departure is not due to financial disagreements and praised her role in the financial turnaround.

• Mixed Revenue Performance

  Q2 total revenue decreased 3% year-over-year to $657 million, slightly below guidance, and the full-year revenue outlook was slightly lowered.

auto_awesomeAnalysis

Peloton's Q2 FY2026 results demonstrate a significant improvement in profitability and cash flow, with Adjusted EBITDA increasing 39% year-over-year and free cash flow remaining positive. The company raised its full-year Adjusted EBITDA and Free Cash Flow guidance, signaling a successful focus on financial discipline and operational efficiency despite a slight revenue miss and lowered full-year revenue outlook. The departure of CFO Liz Coddington, while a C-suite change, is framed as amicable and not related to financial disagreements, with the CEO crediting her for the financial turnaround. This report suggests a positive trajectory for the company's financial health.