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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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<div><ul><li>PTON reported 3QFY26 GAAP net income per share of $0.06, compared with a loss of ($0.12) in 3QFY25, marking another step in its profitability inflection and about in line with our $0.05 estimate and FactSet consensus of $0.07.</li><li>Management does not adjust EPS for one-time items, nor does it include EPS in its formal guidance framework.</li><li>Revenue increased 1% to $631MM, $6MM above the top end of the $605MM-625MM guidance range, primarily driven by outperformance in Connected Fitness equipment sales across both Peloton and Precor brands. </li></ul></div>

PTON reported 3QFY26 GAAP net income per share of $0.06, compared with a loss of ($0.12) in 3QFY25, marking another step in its profitability inflection and about in line with our $0.05 estimate and FactSet consensus of $0.07.Management does not adjust EPS for one-time items, nor does it include EPS in its formal guidance framework.Revenue increased 1% to $631MM, $6MM above the top end of the $605MM-625MM guidance range, primarily driven by outperformance in Connected Fitness equipment sales across both Peloton and Precor brands. 

PTON: Revenue Returns to Growth as Wellness Platform Transformation Gains Momentum

<div><ul><li>PTON reported 2QFY26 GAAP net loss per share of $0.09, better than the loss of $0.24 in 2QFY25, reflecting operational discipline and cost reduction efforts despite the challenging revenue environment. </li><li>This modestly trailed our outlook for ($0.07) and consensus of ($0.05).</li><li>Management does not adjust EPS for one-time items, nor does it include EPS in its guidance or discussions of its results. </li></ul></div>

PTON reported 2QFY26 GAAP net loss per share of $0.09, better than the loss of $0.24 in 2QFY25, reflecting operational discipline and cost reduction efforts despite the challenging revenue environment. This modestly trailed our outlook for ($0.07) and consensus of ($0.05).Management does not adjust EPS for one-time items, nor does it include EPS in its guidance or discussions of its results. 

PTON: Gross Margin Expansion Drives 2Q EBITDA Upside

<ul><li>We are initiating coverage of Peloton Interactive, Inc. (NASDAQ: PTON), a leading global fitness and wellness company combining connected fitness hardware with subscription content.</li><li>Our FY26 GAAP EPS estimate is $0.09, compared with ($0.30) in FY25.</li><li>Our FY27 GAAP EPS estimate is $0.18, reflecting expanding operating leverage as restructuring benefits materialize. Peloton does not adjust EPS for one-time items.</li></ul>

We are initiating coverage of Peloton Interactive, Inc. (NASDAQ: PTON), a leading global fitness and wellness company combining connected fitness hardware with subscription content.Our FY26 GAAP EPS estimate is $0.09, compared with ($0.30) in FY25.Our FY27 GAAP EPS estimate is $0.18, reflecting expanding operating leverage as restructuring benefits materialize. Peloton does not adjust EPS for one-time items.

PTON: Initiating Coverage; The Healthspan Transformation; Four Pillars to Profitable Growth

United States

Peloton Interactive, Inc. provides sporting apparels and products. The Company offers tops, bras, bottoms, watch bands, hats, bags, and workout bikes for indoor cycling products. Peloton Interactive serves customers worldwide.

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Peloton Interactive (PTON US)

PTON: Revenue Returns to Growth as Wellness Platform Transformation Gains Momentum

PTON reported 3QFY26 GAAP net income per share of $0.06, compared with a loss of ($0.12) in 3QFY25, marking another step in its profitability...

Water Tower Research

PTON: Gross Margin Expansion Drives 2Q EBITDA Upside

Ending Paid Connected Fitness Subscriptions totaled 2.661MM, down 214,000 or 7% Y/Y, but 6,000 above the guidance midpoint and exceeding our...

Water Tower Research

PTON: Initiating Coverage; The Healthspan Transformation; Four Pillars to Profitable Growth

We are initiating coverage of Peloton Interactive, Inc. (NASDAQ: PTON), a leading global fitness and wellness company combining connected fitness...

Water Tower Research

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