Peloton Interactive Inc Q1 2026 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Boone - Citizens JMP Securities LLC - Analyst : Thanks so much for taking the question. I would love to just ask about the recall. Can you guys compare this to the initial recall and just help us understand why those two recalls weren't combined?

Question: Andrew Boone - Citizens JMP Securities LLC - Analyst : Okay. Thanks. And then just as a follow-up, I'd love to understand if there are any derivative impacts from the recall around the business, the brand. Can you guys, again, compare this to the previous recall, just help us to understand if there are any ripples that we should be thinking about the broader business? Thank you so much.

Question: Arpine Kocharyan - UBS AG - Analyst : Hi, thanks for taking my question. So I'm going to combine two questions into one, if I may. And you alluded to this in your prepared remarks, but you're raising EBITDA and your revenue guidance is unchanged, which tells me that there's no major change in your thinking as it relates to underlying churn assumptions from before you raised pricing. First, is that a correct read? And secondly, if you could talk through your thinking of how you see churn normalizing. I think you said or normalizing within 8, 12 months post price increase back in 2022. Could you maybe talk about how your base of subscribers is different today versus '22 kind of emerging from COVID lockdown. On the other hand, you've been targeting maybe segments of the market that have underlying turned a bit higher through your rental program in the secondary market. Just if you could talk through what you see different today would be super helpful. Thank you.

Question: Arpine Kocharyan - UBS AG - Analyst : Helpful thank you.

Question: Arpine Kocharyan - UBS AG - Analyst : Thank you very much.

Question: Marni Lysaght - Macquarie Research Ltd - Analyst : Hi, team. Thanks for, taking my questions. I know you've called out, Peter, some of the factors driving the free cash flow result. You're talking to the full year as well. But can you just when we kind of go through the balance sheet and you're talking about timing benefits, like receivables has come in quite lower relative to sales. And I appreciate inventories are a touch high. You've obviously been potentially preparing new products. So just thinking about some of the working capital nuances feeding into free cash flow trends going into this quarter and how you might think about this current quarter and for the -- and how that ties into the full year?

Question: Marni Lysaght - Macquarie Research Ltd - Analyst : Understood. And just kind of, I guess, with new products coming to market, the right way of thinking about industry?

Question: Marni Lysaght - Macquarie Research Ltd - Analyst : Okay. That's understood. And just a quick one on with repowered the kind of like the marketplace platform. How do we think about, I guess, the early progress at had a national rollout over the summer? And would the recall -- would that impact some of the vendors on that?

Question: Bryan Smilek - JPMorgan Chase & Co - Analyst : Great, thanks. It's Bryan Smilek on for Doug. Just two quick questions. Just thinking about the durability of double-digit sustainable Connected Fitness gross margins. Can you just help parse out the drivers between product mix shift, the cost savings, obviously, that you're enacting and I guess, conversely, but also similarly tied. You mentioned increased marketing spend in 2Q. Can you just shed more color on just overall brand positioning, where you're leaning into in terms of target demographics or service or channels as well for marketing? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 06, 2025 / 10:00PM, PTON.OQ - Q1 2026 Peloton Interactive Inc Earnings Call