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How Peloton Interactive (PTON) makes money

Peloton Interactive (PTON) made $559M of revenue in the first quarter fiscal 2027 (Q1 FY27), +2% from a year earlier. Subscription brought in $411M (73%); Connected Fitness Products brought in $148M (27%). Of every dollar of revenue, 61¢ was left as gross profit, 21¢ was left as operating profit, 17¢ was left as net earnings.

Drawing the Sankey…

Peloton Interactive revenue by segment, Q1 FY27Peloton Interactive revenue by segment, Q1 FY27Subscription$411MConnected Fitness Products$148M
Peloton Interactive: revenue by line, Q3 FY25 to Q1 FY27Peloton Interactive: revenue by line, Q3 FY25 to Q1 FY27SubscriptionConnected Fitness Pro…Subscription: $411M latest$411MConnected Fitness Products: $148M latest$148MQ3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Subscription went from 67% of revenue in Q3 FY25 to 73% in Q1 FY27, the largest shift in the mix.
Peloton Interactive revenue by quarterPeloton Interactive revenue by quarter$624MQ3 FY25$607MQ4 FY25$551MQ1 FY26$656MQ2 FY26$631MQ3 FY26$608MQ4 FY26$559MQ1 FY27
Peloton Interactive: where each dollar of revenue goesPeloton Interactive: where each dollar of revenue goesCost of revenue39¢Gross profit61¢Operating expenses40¢Operating profit21¢Income tax0¢Net earnings17¢Operating cash flow26¢Free cash flow26¢

Revenue by segment, Q1 FY27

SegmentRevenueShareQ/QY/Y
Subscription$411M73.4%-6%+3%
Connected Fitness Products$148M26.6%-13%-3%

Where each dollar of revenue goes

LineQ1 FY27% of revenue
Revenue$559M100.0%
Cost of revenue$217M38.7%
Gross profit$343M61.3%
Operating expenses$226M40.5%
Operating profit$116M20.8%
Income tax$1.5M0.3%
Net earnings$96.2M17.2%
Operating cash flow$146M26.1%
Free cash flow$143M25.6%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q1 FY27$559M+2%
Q4 FY26$608M+0.1%
Q3 FY26$631M+1%
Q2 FY26$656M-3%
Q1 FY26$551M-6%
Q4 FY25$607M-6%
Q3 FY25$624M-13%

From Peloton Interactive's 10-Q filed Nov 5, 2026 (on EDGAR).

Questions

How does Peloton Interactive make money?

Peloton Interactive (PTON) made $559M of revenue in the first quarter fiscal 2027 (Q1 FY27), +2% from a year earlier. Subscription brought in $411M (73%); Connected Fitness Products brought in $148M (27%). Of every dollar of revenue, 61¢ was left as gross profit, 21¢ was left as operating profit, 17¢ was left as net earnings.

What is Peloton Interactive's biggest business?

Subscription: $411M in the first quarter fiscal 2027, 73% of revenue, +3% from a year earlier.

What is Peloton Interactive's profit margin?

Net earnings were $96.2M, 17.2% of revenue, in the first quarter fiscal 2027; the operating margin was 20.8%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.