📊 PTON Key Takeaways
Is Peloton Interactive, Inc.. (PTON) a Good Investment?
Peloton demonstrates strong free cash flow generation ($289M) and healthy liquidity, but faces fundamental solvency concerns with negative stockholders' equity of -$242M and razor-thin net margins of 0.1%. The company is a turnaround situation dependent on sustained profitability improvement and equity restoration to justify investment.
Peloton Interactive, Inc.. Key Strengths (PTON)
- Strong free cash flow of $289M with 15.7% FCF margin, indicating operational efficiency in converting revenue to cash
- Healthy gross margin of 51.3% and excellent interest coverage of 18.5x demonstrates pricing power and debt serviceability
- Substantial cash position of $1.1B and current ratio of 2.49x provide near-term liquidity buffer and operational flexibility
PTON Stock Risks: Peloton Interactive, Inc.. Investment Risks
- Negative stockholders' equity of -$242M indicates accumulated losses exceeding equity capital and severe balance sheet stress
- Critically low net margin of 0.1% and operating margin of 4.3% are unsustainable and leave zero room for operational disruption
- High leverage with $1.3B long-term debt against $1.8B revenue creates refinancing risk if cash generation deteriorates
Key Metrics to Watch
- Net profit margin trajectory - must expand materially above current 0.1% to demonstrate sustainable profitability
- Stockholders' equity trend - critical that negative equity position reverses through retained earnings
- Operating cash flow consistency - must maintain >$250M annually to justify debt burden and cash position adequacy
Peloton Interactive, Inc.. (PTON) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.49x current ratio provides a solid financial cushion.
PTON Profit Margin, ROE & Profitability Analysis
PTON vs Market Sector: How Peloton Interactive, Inc.. Compares
How Peloton Interactive, Inc.. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Peloton Interactive, Inc.. Stock Overvalued? PTON Valuation Analysis 2026
Based on fundamental analysis, Peloton Interactive, Inc.. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Peloton Interactive, Inc.. Balance Sheet: PTON Debt, Cash & Liquidity
PTON Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Peloton Interactive, Inc..'s revenue has declined by 30% over the 5-year period, indicating business contraction. The most recent EPS of $-3.64 indicates the company is currently unprofitable.
PTON Revenue Growth, EPS Growth & YoY Performance
PTON Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $624.0M | $1.6M | $0.00 |
| Q2 2026 | $656.5M | -$24.8M | $-0.06 |
| Q1 2026 | $550.8M | -$900.0K | $0.00 |
| Q3 2025 | $624.0M | -$47.7M | $-0.12 |
| Q2 2025 | $673.9M | -$92.0M | $-0.24 |
| Q1 2025 | $586.0M | -$900.0K | $0.00 |
| Q3 2024 | $717.7M | -$167.3M | $-0.45 |
| Q2 2024 | $743.6M | -$194.9M | $-0.54 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Peloton Interactive, Inc.. Dividends, Buybacks & Capital Allocation
PTON SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Peloton Interactive, Inc.. (CIK: 0001639825)
📋 Recent SEC Filings
❓ Frequently Asked Questions about PTON
What is the AI rating for PTON?
Peloton Interactive, Inc.. (PTON) has an AI grade of B with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are PTON's key strengths?
Claude: Strong free cash flow of $289M with 15.7% FCF margin, indicating operational efficiency in converting revenue to cash. Healthy gross margin of 51.3% and excellent interest coverage of 18.5x demonstrates pricing power and debt serviceability.
What are the risks of investing in PTON?
Claude: Negative stockholders' equity of -$242M indicates accumulated losses exceeding equity capital and severe balance sheet stress. Critically low net margin of 0.1% and operating margin of 4.3% are unsustainable and leave zero room for operational disruption.
What is PTON's revenue and growth?
Peloton Interactive, Inc.. reported revenue of $1.8B.
Does PTON pay dividends?
Peloton Interactive, Inc.. does not currently pay dividends.
Where can I find PTON SEC filings?
Official SEC filings for Peloton Interactive, Inc.. (CIK: 0001639825) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is PTON's EPS?
Peloton Interactive, Inc.. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is PTON's fundamental grade?
Based on our AI fundamental analysis in May 2026, Peloton Interactive, Inc.. has a B grade with 70% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is PTON stock overvalued or undervalued?
Valuation metrics for PTON: ROE of N/A (sector avg: 15%), net margin of 0.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is PTON's AI grade for 2026?
Our dual AI analysis gives Peloton Interactive, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is PTON's free cash flow?
Peloton Interactive, Inc..'s operating cash flow is $296.5M, with capital expenditures of $7.6M. FCF margin is 15.7%.
How does PTON compare to other Market stocks?
Vs Default sector averages: Net margin 0.1% (avg: 12%), ROE N/A (avg: 15%), current ratio 2.49 (avg: 1.8).