Peloton’s Form 10-K for fiscal 2026 (year ended June 30, 2026, filed Aug 6, 2026) splits its results in two. Connected Fitness Products (bikes, treads and other hardware) brought in $770.4 million of revenue and cost $680.0 million to deliver, leaving $90.4 million of gross profit (an 11.7% margin). Subscriptions, mainly the monthly All-Access Membership, brought in $1,675.6 million and cost $479.3 million, leaving $1,196.3 million of gross profit (a 71.4% margin). Total gross profit was $1,286.7 million, so about $93 of every $100 Peloton kept after the direct costs came from memberships. “After costs” here means gross profit: revenue minus the cost of revenue, before marketing, R&D and other operating costs. To be fair, Peloton says the product margin fell this year mainly because of import tariff charges and a $13.5 million expense for the Original Series Bike+ seat post recall. Not affiliated with Peloton.
Sources:
Peloton Interactive, Inc. Form 10-K for fiscal 2026 (filed Aug 6, 2026), consolidated statements of operations, key operational and financial metrics, and MD&A gross margin discussion:
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