Grade History
| Quarter | Disclosure Quality | Financial Quality |
|---|---|---|
| Q3'25 → | B | B+ |
| Q4'25 → | B+ | B+ |
| Q1'26 → | B+ | B |
| Q2'26 → | B- | B |
| Q3'26 → | B+ | B+ |
Promise Ledger · All Quarters
| Marked | Promise | Status | |
|---|---|---|---|
| Q3'26 | ✅ | Revenue trajectory meaningful improvement vs last year's decline Achieved first positive growth quarter, -2% vs -8% prior year | delivered |
| Q3'26 | ✅ | Product lineup would attract new members Sales to new members met expectations per Peter | delivered |
| Q3'26 | ✅ | Free cash flow at least $275M for fiscal '26 Raised to vicinity of $350M, 27% above prior minimum | exceeded |
| Q3'26 | ✅ | Commercial business continued growth 14% YoY growth vs 10% in Q2, accelerating as promised | delivered |
| Q3'26 | ✅ | Net churn roughly flat year-over-year despite price increase Achieved 7 bps improvement YoY vs flat expectation | exceeded |
| Q3'26 | ✅ | $100M run rate cost savings by end of fiscal '26 Saqib confirmed on track after January workforce actions | delivered |
| Q3'26 | ⏳ | Achieve positive operating income on full year basis fiscal '26 Now upgraded to also expect positive net income - exceeding original promise | pending |
| Q2'26 | ⏳ | Positive operating income on full-year basis in fiscal 2026 Still expect to achieve this milestone per management | pending |
| Q2'26 | ✅ | Subscription price increase impact in line with expectations Churn performed better than expected at 1.9%, stabilized quickly | delivered |
| Q2'26 | ⏳ | $100 million run rate cost savings by end of fiscal 2026 On track according to management, recent workforce reduction completed the plan | pending |
| Q2'26 | ❌ | Retail expansion would provide holiday season positioning Third-party retail specifically lagged expectations, requiring remediation efforts | missed |
| Q2'26 | ❌ | Cross-training series would drive equipment sales Equipment sales to existing members came in below expectations despite new product launch | missed |
| Q2'26 | ❌ | Inflection toward revenue growth during certain quarters within fiscal year Q2 revenue declined 2% YoY, guidance suggests no positive quarters this fiscal year | missed |
| Q1'26 | ✅ | we plan to launch an additional 8 stores in time for the busy holiday season Launched 9 additional micro stores (now at 10 total) plus Johnson Fitness partnership | exceeded |
| Q1'26 | ⏳ | achieve the important milestone of positive operating income on a full year basis in fiscal 2026 Reaffirmed this target in Q1 call | pending |
| Q1'26 | ⏳ | expect to inflect toward year-over-year revenue growth over the remaining 3 quarters Q2 guidance shows slight growth at midpoint, but softened language around timing | pending |
| Q1'26 | ✅ | we hope to be able to share exciting product updates soon Delivered Cross Training Series, Peloton IQ, and Pro series on October 1 - called it 'most significant product update in our history' | exceeded |
| Q1'26 | ✅ | continue to monitor and respond to evolving tariff policies Actively managing tariff exposure and built $45M impact into guidance | delivered |
| Q1'26 | ⏳ | deliver at least $100 million of run rate cost savings by the end of fiscal 2026 On track according to management, with about half already actioned through workforce reductions | pending |
| Q4'25 | ✅ | Expand Precor pilot to bring Peloton classes to select treadmills Formed new commercial business unit integrating Precor with Peloton | delivered |
| Q4'25 | ✅ | Additional micro store locations soon Opened second micro store in Utah, plan 8 more for holiday season | delivered |
| Q4'25 | ✅ | Continue to generate meaningful free cash flow Generated $112M in Q4, $324M for full year vs. vicinity of $250M guided | exceeded |
| Q4'25 | ⏳ | More details on innovation roadmap later this calendar year Moved timeline up to 'before our next earnings call' suggesting acceleration | pending |
| Q4'25 | ✅ | Share more details on strategy next quarter Peter outlined comprehensive strategy in shareholder letter as promised | delivered |
| Q4'25 | ✅ | Achieve $200 million of run rate cost savings by end of fiscal 2025 They said 'We exceeded our target to achieve at least $200 million of run rate cost savings by the end of fiscal 2025' | exceeded |
| Q3'25 | ✅ | Maintain Connected Fitness product gross margins for remainder of FY25 (from Q2) Improved to 14.3% in Q3, guidance maintained at improved levels | delivered |
| Q3'25 | ✅ | Continue making progress on deleveraging balance sheet (from Q2) Net debt down $312M YoY, achieved first lien ratio below 5x | exceeded |
| Q3'25 | ✅ | Raise full year guidance if Q2 outperformance continued (implied from Q2) Raised midpoints for subs, revenue, and EBITDA guidance | delivered |
| Q3'25 | ✅ | Track ahead of $200M cost restructuring plan (from Q2) Confirmed tracking ahead of target with OpEx down 23% YoY | delivered |
| Q3'25 | ✅ | Targeting at least 2x LTV-to-CAC ratio, ideally closer to 3x (from Q2) Achieved slightly above 2x in Q3 with 30%+ YoY improvement | delivered |
| Q3'25 | ❌ | Share more about longer term strategy as the calendar year progresses (from Q2) Deferred again to next quarter - 'You can expect more details on that next quarter' | missed |
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