Peloton Interactive Inc (NASDAQ: PTON) is a connected fitness company that sells exercise hardware, including stationary bikes, treadmills, and rowing machines, paired with a subscription-based content platform. Revenue comes from two streams: Connected Fitness Product sales and recurring Subscription fees. In FY2025 (fiscal year ended June 30, 2025), total revenue was $2.49 billion, split between $817.1 million from Connected Fitness Products and $1.67 billion from Subscriptions, per the 10-K filed August 7, 2025. Subscription gross margin was 69.1% versus 13.6% for hardware in FY2025, making the recurring membership business the economic engine. The company carries approximately $1.5 billion in total indebtedness as of June 30, 2025, including $990.0 million in secured debt, with $100.0 million available under its revolving credit facility. Peloton has executed multiple restructuring plans since 2022 and announced a 2025 Restructuring Plan targeting headcount reductions and facility exits, with roughly $60.0 million in estimated additional charges expected by end of FY2026.

Revenue model

Two-segment model: (1) Connected Fitness Products, hardware sold directly to consumers, generating $817.1 million in FY2025; (2) Subscriptions, recurring membership fees for platform content access, generating $1.67 billion in FY2025. Subscription tiers include All-Access, App+, App One, and Strength+ memberships at varying price points. Hardware is manufactured primarily outside the U.S., including Taiwan, China, and Thailand.

Products and services

Connected Fitness Products: Peloton Bike, Bike+, Tread, and Row hardware. Software and content platform delivering live and on-demand fitness classes across cycling, running, rowing, strength, yoga, HIIT, meditation, and outdoor running. App memberships: All-Access, App+, App One, and Strength+ (iOS standalone). Peloton Guide strength training device discontinued for new sales in July 2025; existing Guide Memberships continue to be supported.

Customers and end markets

Direct-to-consumer fitness hardware and subscription content buyers. End market is home fitness. Revenue has declined from $2.80 billion in FY2023 to $2.49 billion in FY2025, reflecting contraction in Connected Fitness Product sales. No disclosed customer concentration data in the filing excerpts.

Value-chain role

Peloton designs hardware and proprietary content, sources manufacturing from third-party suppliers outside the U.S., distributes products to consumers directly online, and operates the software and content delivery platform. The company is a content producer and distributor as well as a hardware brand, carrying IP and licensing exposure associated with both roles.

Geographic exposure

Hardware is produced in Taiwan, China, and Thailand, exposing the company to U.S. import tariffs and reciprocal tariffs, including on aluminum, steel, and copper content. Geographic revenue breakdown is not specified in the filing excerpts.

Source: SEC 10-K, filed 2025-08-07

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