Peloton Interactive reported fiscal third-quarter revenue of $631 million. This figure surpassed Wall Street expectations and signaled that the company's turnaround plan is gaining traction. The company posted a surprise GAAP net income of $26 million. This result reverses a $47.7 million loss from the same period last year. The performance marked the first quarter of year-over-year revenue growth since fiscal 2024.
Peloton raised its fiscal year 2026 revenue outlook to between $2.42 billion and $2.44 billion. The company also increased its expectations for full-year free cash flow. Management reduced net debt by 70% year-over-year. Total net debt now stands at $173 million, providing the company with greater financial flexibility.
Peloton shares surged as much as 11% in pre-market trading following the report. The market response suggests renewed investor confidence in the strategic direction under CEO Peter Stern. This rally departs from a historical trend of the stock declining after earnings reports.