# Peloton Interactive (PTON.US)

Canonical: https://gigainvestors.com/s/PTON

Analysis as of: 2026-10-16T07:31:23.416Z. Financial observations: FY2018–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $5.33 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- negative average operating margin

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 5

- Years with a net loss: 8

- Operating margin variation: 1.26×

Chart: Operating margin; fiscal year observations.

- FY2018: -0.11×

- FY2019: -0.22×

- FY2020: -0.04×

- FY2021: -0.05×

- FY2022: -0.76×

- FY2023: -0.43×

- FY2024: -0.20×

- FY2025: -0.01×

- FY2026: 0.08×

### moat: fail

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: -14.9%

- ROIC, second-lowest year: -120.9%

- Typical minus recent gross margin: -7.3 pp

- Typical gross margin (annual median): 43.6%

- Recent gross margin (lower of latest and 3-year median): 50.9%

- Years with nonpositive capital: 1

- Capital spending / revenue: 6.3%

- ROIC including acquisitions, ten-year median: -34.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 0.0%

- FY2019: -120.9%

- FY2020: -14.9%

- FY2021: -10.2%

- FY2022: -129.2%

- FY2023: -77.9%

- FY2024: -50.9%

- FY2025: -5.9%

- FY2026: 12.6%

### economics: fail

- owner earnings cash conversion below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$4.7B

- Net income, five-year total: -$4.7B

- Return on incremental invested capital: 45.2%

- Working capital / revenue, annual change: 0.6 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2022: -$3.0B

- FY2023: -$1.3B

- FY2024: -$506M

- FY2025: -$39M

- FY2026: $103M

### management: fail

- potential debt-funded buybacks (informational)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: -14.9% vs -5.9%

- Per-share earnings: -0.21 to -0.28 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 10.4%

- Diluted shares, 5-year annual growth: 10.4%

- Per-share value change: -$0.08

- Per-share value, starting three-year median: -$0.21

- Per-share value, ending three-year median: -$0.28

- Buybacks concentrated in cheaper years (correlation): -1.00

- Average buyback yield: 0.1%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: -14.9%

- ROIC, last three-year median: -5.9%

Chart: Earnings per share; fiscal year observations.

- FY2018: -$0.21

- FY2019: -$0.70

- FY2020: -$0.21

- FY2021: -$0.60

- FY2022: -$8.27

- FY2023: -$3.48

- FY2024: -$1.43

- FY2025: -$0.28

- FY2026: $0.12

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -15.8%

- Receivables to sales index (DSRI): 0.83×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 51.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 6.13×

- Accounting red flags: 1

Chart: Sloan accruals; fiscal year observations.

- FY2018: -36.0%

- FY2019: -10.1%

- FY2020: -15.0%

- FY2021: 1.1%

- FY2022: -20.0%

- FY2023: -31.6%

- FY2024: -22.2%

- FY2025: -21.3%

- FY2026: -15.8%

## Holders

## Price story

Down 94% since Oct 2021 · "Peloton shares slump as soft outlook overshadows fiscal Q4 beat" (finance.yahoo.com, Aug 2026) · sales -1.8%

Story as of 2026-10-16T09:59:27.442Z; price observation 2026-10-15.

- 2025-10-01: Peloton stock falls on product revamp, Nike's turnaround traction ([finance.yahoo.com](https://finance.yahoo.com/video/peloton-stock-falls-product-revamp-171333763.html))

- 2025-12-21: Peloton (PTON): Reassessing Valuation After an Earnings Beat but Sector-Low Full-Year Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/peloton-pton-reassessing-valuation-earnings-160658139.html))

- 2026-02-05: Peloton Revenue Falls on Declining Subscriptions as CFO Leaves ([finance.yahoo.com](https://finance.yahoo.com/news/peloton-revenue-falls-declining-subscriptions-124600237.html))

- 2026-04-28: Spotify Launches Peloton Classes With 1,400 Workouts; Peloton Shares Jump 11% ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/spotify-launches-peloton-classes-1-115520208.html))

- 2026-05-07: Peloton Soars 11% on Q3 Profit Turnaround, Raised Guidance, Spotify Partnership ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/peloton-soars-11-q3-profit-130013446.html))

- 2026-08-06: Peloton shares slump as soft outlook overshadows fiscal Q4 beat ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/peloton-shares-slump-soft-outlook-120904362.html))

### Sales · FY2025–2026

sales -1.8%; source https://www.sec.gov/Archives/edgar/data/1062441/000095015206002328/l18244ae10vk.txt; observed 2006-03-21.

- FY2018: $435M 

- FY2019: $915M 

- FY2020: $1.8B 

- FY2021: $4.0B 

- FY2022: $3.6B 

- FY2023: $2.8B 

- FY2024: $2.7B 

- FY2025: $2.5B 

- FY2026: $2.4B 

### Gross margin · FY2026

gross margin 52.6%; source https://www.sec.gov/Archives/edgar/data/1062441/000095015206002328/l18244ae10vk.txt; observed 2006-03-21.

- FY2018: 43.6% 

- FY2019: 41.9% 

- FY2020: 45.9% 

- FY2021: 36.2% 

- FY2022: 19.5% 

- FY2023: 33.1% 

- FY2024: 44.7% 

- FY2025: 50.9% 

- FY2026: 52.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in leisure; annual sales are USD 2.4 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2006-03-21); FY2026: revenue 2445900000; grossProfit 1286700000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PTON.US: Peloton Interactive, Inc. provides fitness and wellness products and services in North America and internationally. It offers connected fitness products, such as the Original Bike and Original Bike+; Cross Training Bike, Bike+, Tread, Tread+, and Row+; Peloton Bike+ Pro, Tread+ Pro, and Row+ Pro; and Precor Cardio, Precor Strength, Connected Fitness Solutions, and Wellness Solutions. The company also provides all-access, rental, and Peloton App memberships. In addition, the company leases Peloton Bike products. The company sells its products through e-commerce, third-party retail partners, owned micro-store showrooms, and its commercial business unit. Peloton Interactive, Inc. was founded in 2012 and is headquartered in New York, New York.

### Why customers stay

Margins ranged from 44.7% to 52.6% during 2024–26; it lost 14.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2006-03-21); FY2024: grossProfit / revenue = 44.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2006-03-21); FY2025: grossProfit / revenue = 50.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2006-03-21); FY2026: grossProfit / revenue = 52.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2006-03-21); 9-year return on capital observations [[2018,0],[2019,-1.2093301435406698],[2020,-0.14860839160839162],[2021,-0.10236803974332437],[2022,-1.292478008497397],[2023,-0.7793876710070875],[2024,-0.5092116485926648],[2025,-0.05930734135213604],[2026,0.12616885756877624]]; median -0.14860839160839162. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 1 of 9 years; bought back USD 2.2 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2006-03-21); FY2026: growth capex 0; upkeep 9900000; owner earnings 102500000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2006-03-21); Dividend observations: [[2018,0],[2019,0],[2020,0],[2021,21700000],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2006-03-21); FY2026: cash repurchases 2200000 USD.

### Are managers owners

Insiders own 1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); PTON.US SharesStats.PercentInsiders = 1.01 percentage points; cache date 2026-10-15.

### What the price says

The price is 1.1 times annual sales.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2006-03-21); Closing price 5.33 USD; reporting-to-trading FX 1; FY2026 annual sales per share 4.693266384074171; price multiple 1.1356696091418292. FY2026 cash earnings/share 0.1966800786490055. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2019-09: $25.10 per share

- 2019-10: $23.87 per share

- 2019-11: $35.23 per share

- 2019-12: $28.40 per share

- 2020-01: $32.36 per share

- 2020-02: $26.69 per share

- 2020-03: $26.55 per share

- 2020-04: $31.50 per share

- 2020-05: $42.19 per share

- 2020-06: $57.77 per share

- 2020-07: $68.22 per share

- 2020-08: $76.67 per share

- 2020-09: $99.24 per share

- 2020-10: $110.21 per share

- 2020-11: $116.35 per share

- 2020-12: $151.72 per share

- 2021-01: $146.13 per share

- 2021-02: $120.47 per share

- 2021-03: $112.44 per share

- 2021-04: $98.35 per share

- 2021-05: $110.31 per share

- 2021-06: $124.02 per share

- 2021-07: $118.05 per share

- 2021-08: $100.19 per share

- 2021-09: $87.05 per share

- 2021-10: $91.44 per share

- 2021-11: $44.00 per share

- 2021-12: $35.76 per share

- 2022-01: $27.33 per share

- 2022-02: $29.06 per share

- 2022-03: $26.42 per share

- 2022-04: $17.56 per share

- 2022-05: $13.96 per share

- 2022-06: $9.18 per share

- 2022-07: $9.49 per share

- 2022-08: $10.19 per share

- 2022-09: $6.93 per share

- 2022-10: $8.40 per share

- 2022-11: $11.38 per share

- 2022-12: $7.94 per share

- 2023-01: $12.93 per share

- 2023-02: $12.92 per share

- 2023-03: $11.34 per share

- 2023-04: $8.88 per share

- 2023-05: $7.28 per share

- 2023-06: $7.69 per share

- 2023-07: $9.71 per share

- 2023-08: $6.38 per share

- 2023-09: $5.05 per share

- 2023-10: $4.76 per share

- 2023-11: $5.66 per share

- 2023-12: $6.09 per share

- 2024-01: $5.56 per share

- 2024-02: $4.52 per share

- 2024-03: $4.29 per share

- 2024-04: $3.11 per share

- 2024-05: $3.64 per share

- 2024-06: $3.38 per share

- 2024-07: $3.56 per share

- 2024-08: $4.66 per share

- 2024-09: $4.68 per share

- 2024-10: $8.50 per share

- 2024-11: $10.34 per share

- 2024-12: $8.70 per share

- 2025-01: $7.75 per share

- 2025-02: $7.53 per share

- 2025-03: $6.32 per share

- 2025-04: $6.89 per share

- 2025-05: $7.10 per share

- 2025-06: $6.94 per share

- 2025-07: $7.14 per share

- 2025-08: $7.60 per share

- 2025-09: $9.00 per share

- 2025-10: $7.26 per share

- 2025-11: $6.79 per share

- 2025-12: $6.16 per share

- 2026-01: $5.59 per share

- 2026-02: $4.02 per share

- 2026-03: $4.29 per share

- 2026-04: $5.45 per share

- 2026-05: $6.40 per share

- 2026-06: $5.91 per share

- 2026-07: $6.39 per share

- 2026-08: $5.36 per share

- 2026-09: $4.99 per share

- 2026-10: $5.33 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1062441/000095015206002328/l18244ae10vk.txt); period 2005-12-31, filed 2006-03-21.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.