Peloton Interactive Inc. Class A Common Stock (PTON)

FairStock Score: 33/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses with durable economics, honest accounting, and a price that leaves room for error. Peloton sells connected fitness hardware and subscriptions, but it is not a classic moat business. After losing $551.9M in fiscal 2024 and $118.9M in fiscal 2025, it earned $63.2M in fiscal 2026, all periods ended June 30 as filed. Revenue, however, slid from $2.7B to $2.5B to $2.4B over those years. Quarterly figures show how uneven the recovery is: fiscal Q1 2026, ended 2025-09-30, earned $13.9M; fiscal Q2 2026, ended 2025-12-31, lost $38.8M; and fiscal Q3 2026, ended 2026-03-31, earned $26.4M. The business depends on selling expensive hardware and retaining subscribers, which can be fickle when consumers tighten spending. The trailing free cash flow was $377.7M, and FairStock's FCF yield is 14.1% on the $2.7B market cap, which is genuinely attractive if sustainable. Yet FairStock's P/E is 37.29 at the $5.22 close on 2026-10-13, EV/EBITDA is 13.01, ROCE is only 6.37%, and the Altman Z-Score is -2.04, pointing to balance-sheet risk. Piotroski 7/9 and a Lynch turnaround label are encouraging, but the 33/100 FairStock score warns that the market already prices in much of the recovery. No dividend is paid, and beta of 2.55 suggests the shares will remain volatile. I would want more consistent revenue and profits before calling this a bargain.

In plain English: Peloton sells exercise bikes, treads, rowers, and workout subscriptions. It had big losses in earlier years but made a small profit in the year ended June 30, 2026, and it produces strong cash flow. At $5.22, the stock looks expensive compared with that small profit, and sales have been shrinking.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-03-31) · fiscal Q2 2026 10-Q (period ended 2025-12-31) · fiscal Q1 2026 10-Q (period ended 2025-09-30) · fiscal Q3 2025 10-Q (period ended 2025-03-31) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer