Quality Investor

Peloton Interactive, Inc.

Rank #46Value

PTON · Nasdaq · Consumer Cyclical

Peloton Interactive, Inc. (PTON) — Rank #46 by gross profitability (GP/assets 0.63) · ROE -45.2% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0001639825 · all metrics point-in-time as of the filing date.

About

Peloton Interactive, Inc. provides fitness and wellness products and services in North America and internationally.

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It offers connected fitness products, such as the Original Bike and Original Bike+; Cross Training Bike, Bike+, Tread, Tread+, and Row+; Peloton Bike+ Pro, Tread+ Pro, and Row+ Pro; and Precor Cardio, Precor Strength, Connected Fitness Solutions, and Wellness Solutions. The company also provides all-access, rental, and Peloton App memberships. In addition, the company leases Peloton Bike products. The company sells its products through e-commerce, third-party retail partners, owned micro-store showrooms, and its commercial business unit. Peloton Interactive, Inc.

was founded in 2012 and is headquartered in New York, New York.

Industry
Leisure
Sector
Consumer Cyclical
Filer Category
Large accelerated filer
Fiscal Year End
June 30

Price History

PTON-95.0% · -45.0% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E and dividend yield are the primary valuation lenses for mature businesses.

Market Cap

$2.14B

P/E (annual)

34.8

P/S (annual)

0.9

P/B

P/OCF (annual)

5.5

Shareholder Yield

-11.8%

Employees

2,199

Industry

Leisure

Exchange

Nasdaq

Signal Flags

1 green1 yellow1 red
Revenue growth acceleratingGrowth rate increasing year over year
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Revenue declining YoYRevenue contracted year over year

Quality Profile

Profitability

1/1 pass
GP / assets
0.63
Return on equity
-45.2%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
Current ratio
2.84×
Net cash
-$123.40M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
8.1%

Growth

0/2 pass
Revenue growth
-1.8%
Piotroski F-Score
8 / 9
Share dilution
11.8%

Terry Smith quality gate

Passes 2/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-10.3%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 11.8% — per-share value needs a total required return of 1.6% once share-count change is priced in.

vs. own 6-year median revenue growth: -5.7%

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-13.4%

r = 10% (base)

-10.3%

r = 12%

-7.5%

Net debt / market cap: 5.8%

Base FCF: $377.7M3Y mean FCF: $205.2M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

1.0xFair
0.6xmed 0.9x7.6x

P / GP

Price / gross profit per share

1.9xCheap
1.4xmed 2.1x21.1x

Dividend yield and payout ratio are the primary reads at this stage (trailing P/E — see valuation above).

Profitability

Gross profitability (GP / assets)

0.63

Primary signal (Novy-Marx).

1st of 7 SIC 39 peers

Return on equity

-45.2%

Gross margin

52.6%

1st of 7 SIC 39 peers

Revenue growth (YoY)

-1.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-4.4%

Revenue CAGR (5Y)

-9.5%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

Current ratio

2.84×

5th of 7 SIC 39 peers

Quick ratio

2.46×

Net cash

-$123.40M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$377.70M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

4.98

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

8.1%

Stock-based comp intensity.

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20212026
Hypergrowth
Decline
Startup
Value