PELOTON INTERACTIVE, INC.
For the period ended Mar 31, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
PTON$5.61-0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-02-05.
0001639825-26-000008
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001639825-26-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 190 previous paragraphs and 197 current paragraphs.
132 unchanged; 50 reworded; 13 added; 8 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 18 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
On February 20, 2026, the U.S. Supreme Court issued a decision invalidating tariffs imposed under the International Emergency Economic Power Act ("IEEPA"). We are closely monitoring updates from U.S. Customs and Border Protection (“CBP”), and are positioned to submit our IEEPA tariff refund claim as soon as CBP is ready to accept such refund claims. We will continue to evaluate new information and will recognize any IEEPA tariff refunds or related receivables when they are realized or realizable.
Current report
While IEEPA tariffs are no longer effective, we are now currently subject to Section 122 tariffs of 10%. Additionally, on April 2, 2026, President Trump issued a presidential proclamation modifying the application of Section 232 tariffs on steel, aluminum, and their derivative products, which, among other things, removed fitness equipment from the scope of those tariffs. As a result, as of April 6, 2026, the steel and aluminum content in our Connected Fitness Products is no longer subject to Section 232 tariffs of 50%.
Current report
Income tax expense
Current report
Subscription Revenue increased $9.4 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to the subscription price increases that became effective during the three months ended December 31, 2025, partially offset by decreases in Paid Connected Fitness and App Subscriptions and decreases in content licensing revenue during the three months ended March 31, 2026.
Current report
Connected Fitness Products Revenue decreased $19.2 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025, primarily attributable to lower sales of certain Connected Fitness products, partially offset by improvements in Precor revenue during the nine months ended March 31, 2026.
Current report
Connected Fitness Products Cost of revenue increased $3.8 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. This increase was primarily driven by higher sales of Precor-branded fitness products, and an increase in import tariff charges, partially offset by lower sales of certain Connected Fitness products, and lower warranty expense.
Current report
Subscription Cost of revenue decreased $6.1 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to lower music royalties costs and related reserves, and a reduction in depreciation and amortization expense.
Current report
Subscription Cost of revenue decreased $37.9 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025, primarily due to lower music royalties costs and related reserves, and a reduction in depreciation and amortization expense.
Current report
Three and Nine Months Ended March 31, 2026 and 2025
Current report
Three and Nine Months Ended March 31, 2026 and 2025
Current report
•Foreign exchange losses of $4.3 million and $10.6 million, respectively; and
Current report
•Other expense, net of zero and $0.3 million, respectively.
Current report
•Foreign exchange gains of $10.3 million and $6.6 million, respectively; and
Removed paragraphs (8)
Previous report
(1) Beginning January 1, 2025, we migrated our subscription data model for reporting Ending Paid Connected Fitness Subscriptions, Average Net Monthly Paid Connected Fitness Subscription Churn, and Ending Paid App Subscriptions to a new data model that provides greater visibility to changes to a subscription's payment status when they occur. The new model gives us more precise and timely data on subscription pause and churn behavior. Prior period information has been revised to conform with current period presentation. The impact of this change in the model on Ending Paid Connected Fitness Subscriptions, Average Net Monthly Paid Connected Fitness Subscription Churn, and Ending Paid App Subscriptions for the three months ended December 31, 2025 and 2024 is immaterial. Starting in fiscal 2026, we no longer report on Average Monthly Paid App Subscription Churn.
Previous report
Income tax (benefit) expense
Previous report
Connected Fitness Products Cost of revenue decreased $10.6 million for the three months ended December 31, 2025, compared to the three months ended December 31, 2024. This decrease was primarily driven by fewer Connected Fitness product deliveries, resulting from lower sales, and lower warranty costs, partially offset by higher Precor sales and an increase in import tariff charges.
Previous report
Subscription Cost of revenue decreased $19.7 million for the three months ended December 31, 2025, compared to the three months ended December 31, 2024, primarily due to lower music royalties costs and related reserves.
Previous report
Subscription Cost of revenue decreased $31.8 million for the six months ended December 31, 2025, compared to the six months ended December 31, 2024, primarily due to lower music royalties costs and related reserves.
Previous report
•Foreign exchange losses of $2.4 million and $6.2 million, respectively; and
Previous report
•Foreign exchange losses of $18.5 million and $3.7 million, respectively; and
Previous report
•Other income, net of $0.2 million and $0.1 million, respectively.
Reworded paragraphs (50)
Previous wording
In October 2025, we launched the Cross Training Series, a refreshed portfolio of Connected Fitness Products, which includes the Cross Training Bike, Bike+, Tread, Tread+, and Row+. We also launched the Peloton Pro Series, a refresh of our portfolio of commercial-certified Peloton-branded products, which now includes the Bike+ Pro, Tread+ Pro, and Row+ Pro. In connection with the Cross Training Series launch, we discontinued the sale of our original series (the “Original Series”) Tread, Tread+, and Row; however we continue to sell the refurbished Original Series Bike and Bike+, as well as our Precor products (collectively, the "Connected Fitness Products").
Current wording
In October 2025, we launched the Cross Training Series, a refreshed portfolio of Connected Fitness Products, which includes the Cross Training Bike, Bike+, Tread, Tread+, and Row+. We also launched the Peloton Pro Series, a refresh of our portfolio of commercial-certified Peloton-branded products, which now includes the Bike+ Pro, Tread+ Pro, and Row+ Pro. In connection with the Cross Training Series launch, we discontinued the sale of our original series (the “Original Series”) Tread, Tread+, and Row; however we continue to sell the refurbished Original Series Bike and Bike+, as well as our Precor products (collectively with the Cross Training Series and the Peloton Pro Series, the "Connected Fitness Products").
Previous wording
In connection with the 2025 Restructuring Plan, we estimate that we will incur additional cash restructuring charges of approximately $25.0 million, primarily comprising location strategy costs, lease termination costs, and other exit costs. Additionally, we expect to recognize additional non-cash restructuring charges of approximately $5.0 million, primarily comprising asset write-downs and write-offs in connection with the continued exit of our retail and other leased locations. We expect these charges to be substantially incurred by the end of fiscal year 2026, which is subject to change.
Current wording
In connection with the 2025 Restructuring Plan, we estimate that we will incur additional cash restructuring charges of approximately $15.0 million, primarily comprising location strategy costs, lease termination costs, and other exit costs. Additionally, we expect to recognize additional non-cash restructuring charges of approximately $5.0 million, primarily comprising asset write-downs and write-offs in connection with the continued exit of our retail and other leased locations. We expect these charges to be substantially incurred by the end of fiscal year 2026, which is subject to change.
Previous wording
We continue to closely monitor changes in international trade policies, relations, legislation and regulations, including those related to tariffs, which could adversely impact the global economy and our business, financial condition, and operating results. The impact of any tariffs will depend on various factors, including whether the tariffs are ultimately implemented, the timing of implementation, and the amount, scope and nature of the tariffs.
Current wording
We continue to closely monitor changes in international trade policies, relations, legislation and regulations, including those related to tariffs, which could adversely impact the global economy and our business, financial condition, and operating results. The impact of any tariffs will depend on various factors, including whether certain tariffs are ultimately implemented, the timing of implementation, and the amount, scope and nature of the tariffs.
Previous wording
As of December 31, 2025, we have accrued $7.5 million to replace Original Series Bike+ seat posts, which is a reduction from our accrual of $16.5 million as of September 30, 2025. This reduction is primarily driven by the utilization of our previously established accrual. This accrual is based on an amount that we deem probable and estimable and is reflected in Connected Fitness Products Cost of revenue in our Condensed Consolidated Statements of Operations and Comprehensive Loss.
Current wording
As of March 31, 2026, we have accrued $7.2 million to replace Original Series Bike+ seat posts, which is a reduction from our accrual of $16.5 million as of September 30, 2025. This reduction is primarily driven by the utilization of our previously established accrual. We have not established any incremental accruals since September 30, 2025. This accrual is based on an amount that we deem probable and estimable and is reflected in Connected Fitness Products Cost of revenue in our Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).
Previous wording
(3) Please see the section titled “Non-GAAP Financial Measures—Adjusted EBITDA” for a reconciliation of Net loss to Adjusted EBITDA and an explanation of why we consider Adjusted EBITDA to be a helpful measure for investors.
Current wording
(2) Please see the section titled “Non-GAAP Financial Measures—Adjusted EBITDA” for a reconciliation of Net income (loss) to Adjusted EBITDA and an explanation of why we consider Adjusted EBITDA to be a helpful measure for investors.
Previous wording
Connected Fitness Products Revenue primarily consists of sales of our portfolio of Connected Fitness Products and related accessories, as well as Precor-branded fitness products, delivery and installation services, Peloton Bike portfolio rental products, extended warranty agreements, branded apparel, and commercial service contracts. Connected Fitness Products Revenue is recognized at the time of delivery, except for extended warranty revenue that is recognized over the warranty period and service revenue that is recognized over the term, and is recorded net of sales returns and concessions, discounts and allowances, and third-party financing program fees, when applicable.
Current wording
Connected Fitness Products Revenue primarily consists of sales of our portfolio of Connected Fitness Products and related accessories, including Precor-branded fitness products, delivery and installation services, Peloton Bike portfolio rental products, extended warranty agreements, branded apparel, and commercial service contracts. Connected Fitness Products Revenue is recognized at the time of delivery, except for extended warranty revenue that is recognized over the warranty period and service revenue that is recognized over the term, and is recorded net of sales returns and concessions, discounts and allowances, and third-party financing program fees, when applicable.
Previous wording
As of December 31, 2025, 99% and 76% of our Connected Fitness Subscription and Paid App Subscription bases, respectively, were paying month-to-month.
Current wording
As of March 31, 2026, 99% and 77% of our Connected Fitness Subscription and Paid App Subscription bases, respectively, were paying month-to-month.
Previous wording
A single Connected Fitness Subscription provides access to multiple, different Peloton Connected Fitness Products (such as a Peloton Bike and Peloton Tread) in the same household. As of December 31, 2025, approximately 11% of our Connected Fitness Subscriptions owned multiple, different Connected Fitness Products.
Current wording
A single Connected Fitness Subscription provides access to multiple, different Peloton Connected Fitness Products (such as a Peloton Bike and Peloton Tread) in the same household. As of March 31, 2026, approximately 12% of our Connected Fitness Subscriptions owned multiple, different Connected Fitness Products.
Previous wording
Comparison of the Three and Six Months Ended December 31, 2025 and 2024
Current wording
Comparison of the Three and Nine Months Ended March 31, 2026 and 2025
Previous wording
Connected Fitness Products Revenue decreased $9.4 million and $16.6 million for the three and six months ended December 31, 2025, respectively, compared to the three and six months ended December 31, 2024. This decrease was primarily attributable to fewer Connected Fitness product deliveries driven by lower sales, partially offset by improvements in Precor revenue and higher average selling prices for products in our Cross Training Series, which launched in October 2025.
Current wording
Connected Fitness Products Revenue decreased $2.6 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to lower sales of certain Connected Fitness products, partially offset by improvements in Precor revenue during the three months ended March 31, 2026.
Previous wording
Subscription Revenue decreased $8.0 million and $35.9 million for the three and six months ended December 31, 2025, respectively, compared to the three and six months ended December 31, 2024, primarily due to decreases in Paid Connected Fitness and App Subscriptions and decreases in content licensing revenue, partially offset by the subscription price increases during the three months ended December 31, 2025.
Current wording
Subscription Revenue decreased $26.5 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025, primarily due to decreases in Paid Connected Fitness and App Subscriptions and decreases in content licensing revenue, partially offset by the subscription price increases that became effective during the three months ended December 31, 2025.
Previous wording
Our Connected Fitness Products Gross margin increased to 13.9% for the three months ended December 31, 2025, compared to 12.9% for the three months ended December 31, 2024. This increase was primarily driven by lower warranty costs and a mix shift towards higher margin products, partially offset by an increase in import tariff charges and inventory reserves.
Current wording
Our Connected Fitness Products Gross margin decreased to 11.3% for the three months ended March 31, 2026, compared to 14.3% for the three months ended March 31, 2025. This decrease was primarily driven by higher promotional discounts, a product mix shift towards lower-margin products, and an increase in import tariff charges, partially offset by lower warranty expense.
Previous wording
Subscription Gross margin increased to 72.1% for the three months ended December 31, 2025, compared to 67.9% for the three months ended December 31, 2024. This increase was primarily driven by the subscription price increases during the three months ended December 31, 2025 and lower music royalties costs and related reserves, partially offset by decreases in Paid Connected Fitness and App Subscriptions.
Current wording
Subscription Gross margin increased to 71.1% for the three months ended March 31, 2026, compared to 69.0% for the three months ended March 31, 2025. This increase was primarily driven by the subscription price increases that became effective during the three months ended December 31, 2025, and lower music royalties costs and related reserves, partially offset by decreases in Paid Connected Fitness and App Subscriptions and content licensing revenue.
Previous wording
Connected Fitness Products Cost of revenue decreased $13.7 million for the six months ended December 31, 2025, compared to the six months ended December 31, 2024. This decrease was primarily driven by fewer Connected Fitness Product deliveries, resulting from lower sales, and lower warranty costs, partially offset by the $13.5 million expense incurred related to the Original Series Bike+ seat post recall, higher Precor sales, and an increase in import tariff charges.
Current wording
Connected Fitness Products Cost of revenue decreased $9.9 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025. This decrease was primarily driven by lower sales of certain Connected Fitness Products, and lower warranty expense, partially offset by the $13.5 million expense incurred related to the Original Series Bike+ seat post recall, higher sales of Precor-branded fitness products, and an increase in import tariff charges.
Previous wording
Our Connected Fitness Products Gross margin decreased to 11.2% for the six months ended December 31, 2025, compared to 11.5% for the six months ended December 31, 2024. This decrease was primarily driven by the $13.5 million expense incurred related to the Original Series Bike+ seat post recall and an increase in import tariff charges, partially offset by a mix shift towards higher margin products and lower warranty costs.
Current wording
Our Connected Fitness Products Gross margin decreased to 11.3% for the nine months ended March 31, 2026, compared to 12.4% for the nine months ended March 31, 2025. This decrease was primarily driven by the $13.5 million expense incurred related to the Original Series Bike+ seat post recall, higher promotional discounts, a product mix shift towards lower-margin products, and an increase in import tariff charges, partially offset by lower warranty expense.
Previous wording
Subscription Gross margin increased to 70.4% for the six months ended December 31, 2025, compared to 67.9% for the six months ended December 31, 2024. This increase was primarily driven by the subscription price increases during the six months ended December 31, 2025, and lower music royalties costs and related reserves, partially offset by decreases in Paid Connected Fitness and App Subscriptions.
Current wording
Subscription Gross margin increased to 70.6% for the nine months ended March 31, 2026, compared to 68.2% for the nine months ended March 31, 2025. This increase was primarily driven by the subscription price increases that became effective during the three months ended December 31, 2025, and lower music royalties costs and related reserves, partially offset by decreases in Paid Connected Fitness and App Subscriptions and content licensing revenue.
Previous wording
Sales and marketing expense decreased $15.7 million for the six months ended December 31, 2025, compared to the six months ended December 31, 2024, primarily driven by a decrease in acquisition and brand marketing charges.
Current wording
Sales and marketing expense decreased $8.4 million for the three and nine months ended March 31, 2026, respectively, compared to the three and nine months ended March 31, 2025, primarily driven by a decrease in acquisition marketing spend.
Previous wording
Sales and marketing expense decreased $0.6 million for the three months ended December 31, 2025, compared to the three months ended December 31, 2024, primarily driven by a decrease in rent and occupancy charges due to the exit of certain retail showroom locations.
Current wording
Sales and marketing expense decreased $24.2 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025, primarily driven by a $22.1 million decrease in acquisition and brand marketing charges, and a $3.2 million decrease in rent and occupancy charges due to the exit of certain retail showroom locations.
Previous wording
General and administrative expense decreased $28.4 million and $47.1 million for the three and six months ended December 31, 2025, respectively, compared to the three and six months ended December 31, 2024. The decrease was mainly driven by a decrease of $20.0 million and $28.6 million in personnel-related expenses, inclusive of stock-based compensation expense, respectively, primarily due to decreased average headcount and the assignment of executive compensation to the various expense captions beginning in fiscal 2026, a decrease of $4.4 million and $8.2 million in rent and occupancy charges, respectively, primarily due to the assignment of other corporate overhead costs to the various expense captions beginning in fiscal 2026, and a decrease of $3.2 million and $6.8 million in professional services fees, respectively.
Current wording
General and administrative expense decreased $41.0 million and $88.1 million for the three and nine months ended March 31, 2026, respectively, compared to the three and nine months ended March 31, 2025. The decrease was mainly driven by a decrease of $32.0 million and $60.6 million in personnel-related expenses, inclusive of stock-based compensation expense, respectively, primarily due to decreased average headcount and the assignment of executive compensation to the various expense captions beginning in fiscal 2026, and a decrease of $4.0 million and $12.2 million in rent and occupancy charges, respectively, primarily due to the assignment of other corporate overhead costs to the various expense captions beginning in fiscal 2026.
Previous wording
Research and development expense increased $4.7 million and $8.3 million for the three and six months ended December 31, 2025, respectively, compared to the three and six months ended December 31, 2024, mainly driven by an increase of $3.8 million and $7.4 million in personnel-related expenses, inclusive of stock-based compensation expense, respectively, and an increase of $1.4 million and $3.0 million in rent and occupancy charges, respectively, both primarily due to the assignment of executive compensation and other corporate overhead costs, discussed above.
Current wording
Research and development expense remained mostly consistent for the three months ended March 31, 2026, compared to the three months ended March 31, 2025. Research and development expense increased $7.5 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025, mainly driven by a $7.2 million increase in personnel-related expenses, inclusive of stock-based compensation expense, and a $4.6 million increase in rent and occupancy charges, both primarily due to the assignment of executive compensation and other corporate overhead costs, discussed above, partially offset by a $2.7 million decrease in product development costs, primarily due to a reduction in contractor spend.
Previous wording
Impairment expense increased $6.2 million and $9.7 million for the three and six months ended December 31, 2025, respectively, compared to the three and six months ended December 31, 2024, primarily due to $22.9 million in asset write-downs and write-offs related to plans to right-size portions of our corporate office footprint during the three and six months ended December 31, 2025, partially offset by decreases of $16.2 million and $14.1 million in impairment expense related to the exit of retail showroom locations during the three and six months ended December 31, 2025, respectively.
Current wording
Impairment expense decreased $27.3 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, mainly driven by a $32.2 million decrease in asset write-downs and write-offs related to plans to right-size portions of our corporate office footprint, partially offset by a $7.9 million increase in impairment expense related to the exit of retail showroom locations.
Previous wording
Restructuring expense decreased $0.6 million for the three months ended December 31, 2025, compared to the three months ended December 31, 2024, primarily due to a decrease in severance and other personnel costs, partially offset by an increase in stock-based compensation expense, in connection with the Restructuring Plans.
Current wording
Restructuring expense increased $1.7 million for the three months ended March 31, 2026, compared to the three months ended March 31, 2025, primarily due to an increase in severance and other personnel costs in connection with the Restructuring Plans.
Previous wording
Restructuring expense increased $0.9 million for the six months ended December 31, 2025, compared to the six months ended December 31, 2024, primarily due to an increase in stock-based compensation expense in connection with the Restructuring Plans.
Current wording
Restructuring expense increased $2.6 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025, primarily due to an increase in exit and disposal costs and professional fees, and an increase in stock-based compensation expense, in connection with the Restructuring Plans.
Previous wording
Supplier settlements decreased $23.5 million for the six months ended December 31, 2025, compared to the six months ended December 31, 2024, due to accruals for the six months ended December 31, 2024 related to the settlement of disputes with a third-party supplier about certain alleged past and future commitments.
Current wording
Supplier settlements decreased $23.5 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025, due to the settlement of disputes with a third-party supplier about certain alleged past and future commitments during the nine months ended March 31, 2025.
Previous wording
Total other expense, net and Income tax (benefit) expense
Current wording
Total other expense, net and Income tax expense
Previous wording
Total other expense, net comprised the following for the three and six months ended December 31, 2025:
Current wording
Total other expense, net comprised the following for the three and nine months ended March 31, 2026:
Previous wording
•Interest expense primarily related to our Term Loan and convertible notes of $31.5 million and $63.8 million, respectively;
Current wording
•Interest expense primarily related to our Term Loan and convertible notes of $30.0 million and $93.8 million, respectively;
Previous wording
•Interest income from cash, cash equivalents, and short-term investments of $9.2 million and $18.9 million, respectively;
Current wording
•Interest income from cash, cash equivalents, and short-term investments of $8.7 million and $27.6 million, respectively;
Previous wording
Total other expense, net comprised the following for the three and six months ended December 31, 2024:
Current wording
Total other expense, net comprised the following for the three and nine months ended March 31, 2025:
Previous wording
•Interest expense primarily related to our Term Loan and convertible notes of $34.6 million and $70.0 million, respectively;
Current wording
•Interest expense primarily related to our Term Loan and convertible notes of $32.6 million and $102.6 million, respectively;
Previous wording
•Interest income from cash, cash equivalents, and short-term investments of $7.7 million and $15.8 million, respectively;
Current wording
•Interest income from cash, cash equivalents, and short-term investments of $7.9 million and $23.7 million, respectively;
Previous wording
•Other income (expense), net of $0.1 million and $(0.3) million, respectively.
Current wording
•Other expense, net of $0.1 million and zero, respectively.
Previous wording
Income tax (benefit) expense for the three and six months ended December 31, 2025 of $(0.2) million and $0.5 million, respectively, was primarily due to state and international taxes. Income tax expense for the three and six months ended December 31, 2024 of $0.7 million and $1.6 million, respectively, was primarily due to state and international taxes.
Current wording
Income tax expense for the three and nine months ended March 31, 2026 of $0.4 million and $0.9 million, respectively, was primarily due to state and international taxes. Income tax expense for the three and nine months ended March 31, 2025 of $0.8 million and $2.3 million, respectively, was primarily due to state and international taxes.
Previous wording
The following table presents a reconciliation of Adjusted EBITDA to Net loss, the most directly comparable financial measure prepared in accordance with GAAP, for each of the periods indicated:
Current wording
The following table presents a reconciliation of Adjusted EBITDA to Net income (loss), the most directly comparable financial measure prepared in accordance with GAAP, for each of the periods indicated:
Previous wording
(1) Primarily consists of Interest expense of $31.5 million and $63.8 million, Interest income of $(9.2) million and $(18.9) million, and foreign exchange losses of $2.4 million and $6.2 million, for the three and six months ended December 31, 2025, respectively. Primarily consists of Interest expense of $34.6 million and $70.0 million, foreign exchange losses of $18.5 million and $3.7 million, and Interest income of $(7.7) million and $(15.8) million, for the three and six months ended December 31, 2024, respectively.
Current wording
(1) Primarily consists of Interest expense of $30.0 million and $93.8 million, Interest income of $(8.7) million and $(27.6) million, and foreign exchange losses of $4.3 million and $10.6 million, for the three and nine months ended March 31, 2026, respectively. Primarily consists of Interest expense of $32.6 million and $102.6 million, foreign exchange gains of $(10.3) million and $(6.6) million, and Interest income of $(7.9) million and $(23.7) million, for the three and nine months ended March 31, 2025, respectively.
Previous wording
(3)Represents accrual for the six months ended December 31, 2024 related to settlement of disputes with a third-party supplier about certain alleged past and future commitments, which occurred due to part of an unusual, one-time effort to adjust our forecasted inventory during its fiscal years 2022 and 2023. With this settlement, we have substantially settled our purchase commitments related disputes with our suppliers that were linked to our one-time effort to evaluate and adjust our forecasted inventory needs with our suppliers during fiscal years 2022 and 2023. As such, we currently do not expect to add back any additional supplier settlements related to that effort.
Current wording
(3)Represents accrual for the nine months ended March 31, 2025 related to settlement of disputes with a third-party supplier about certain alleged past and future commitments, which occurred due to part of an unusual, one-time effort to adjust our forecasted inventory during its fiscal years 2022 and 2023. With this settlement, we have substantially settled our purchase commitments related disputes with our suppliers that were linked to our one-time effort to evaluate and adjust our forecasted inventory needs with our suppliers during fiscal years 2022 and 2023. As such, we currently do not expect to add back any additional supplier settlements related to that effort.
Previous wording
Our operations have been funded primarily through net proceeds from the sales of our equity and convertible debt securities, our Term Loan, as well as cash flows from operating activities. As of December 31, 2025, we had Cash and cash equivalents of approximately $1,179.6 million.
Current wording
Our operations have been funded primarily through net proceeds from the sales of our equity and convertible debt securities, our Term Loan, as well as cash flows from operating activities. As of March 31, 2026, we had Cash and cash equivalents of approximately $1,126.3 million.
Previous wording
•Our rate of revenue growth and market acceptance of our Connected Fitness Products;
Current wording
•Our ability to generate and grow revenue and market acceptance of our Connected Fitness Products;
Previous wording
Net cash provided by operating activities of $119.2 million for the six months ended December 31, 2024 was primarily related to non-cash adjustments of $214.6 million, partially offset by a net loss of $92.8 million and a net increase in operating assets and liabilities of $2.6 million. Non-cash adjustments primarily consisted of $108.7 million of stock-based compensation expense, $47.6 million of depreciation and amortization, $28.6 million of non-cash operating lease expense, and $21.6 million of impairment expense. The net increase in operating assets and liabilities was primarily due to a $56.4 million decrease in accounts payable and accrued expenses and a $42.2 million decrease in net operating lease liabilities due to lease payments and lease terminations as we continue to reduce our real estate footprint through our restructuring efforts, partially offset by a $78.8 million decrease in inventories.
Current wording
Net cash provided by operating activities of $296.5 million for the nine months ended March 31, 2026 was primarily related to non-cash adjustments of $292.0 million, a net decrease in operating assets and liabilities of $2.9 million and a net income of $1.6 million. Non-cash adjustments primarily consisted of $155.6 million of stock-based compensation expense, $45.7 million of depreciation and amortization, $38.4 million of non-cash operating lease expense, and $34.7 million of impairment expense. The net decrease in operating assets and liabilities was primarily due to a $38.4 million decrease in net inventory levels, a $37.9 million decrease in prepaid expenses and other current assets, and a $22.4 million decrease in accounts receivable, partially offset by a $57.7 million decrease in net operating lease liabilities due to lease payments and lease terminations as we continue to reduce our real estate footprint in connection with the Restructuring Plans, and a $27.6 million decrease in accounts payable and accrued expenses.
Previous wording
Net cash provided by operating activities of $143.8 million for the six months ended December 31, 2025 was primarily related to non-cash adjustments of $203.9 million, partially offset by a net increase in operating assets and liabilities of $35.3 million and a net loss of $24.8 million. Non-cash adjustments primarily consisted of $102.9 million of stock-based compensation expense, $32.1 million of depreciation and amortization, $31.3 million of impairment expense, and $26.5 million of non-cash operating lease expense. The net increase in operating assets and liabilities was primarily due to a $40.1 million decrease in net operating lease liabilities due to lease payments and lease terminations as we continue to reduce our real estate footprint in connection with the Restructuring Plans, and a $28.8 million decrease in accounts payable and accrued expenses, partially offset by a $27.9 million decrease in prepaid expenses and other current assets.
Current wording
Net cash provided by operating activities of $215.9 million for the nine months ended March 31, 2025 was primarily related to non-cash adjustments of $339.5 million and a net decrease in operating assets and liabilities of $16.8 million, partially offset by a net loss of $140.5 million. Non-cash adjustments primarily consisted of $176.2 million of stock-based compensation expense, $68.8 million of depreciation and amortization, $52.3 million of impairment expense, and $41.9 million of non-cash operating lease expense. The decrease in operating assets and liabilities was primarily due to a $125.0 million decrease in net inventory levels and a $25.2 million decrease in prepaid expenses and other current assets, partially offset by a $79.5 million decrease in accounts payable and accrued expenses and a $64.1 million decrease in net operating lease liabilities due to lease payments and lease terminations as we continue to reduce our real estate footprint through our 2024 Restructuring Plan efforts.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Impairment expense decreased $17.6 million for the nine months ended March 31, 2026, compared to the nine months ended March 31, 2025, mainly driven by a $9.3 million decrease in asset write-downs and write-offs related to plans to right-size portions of our corporate office footprint, and a $6.1 million decrease in impairment expense related to the exit of retail showroom locations.
Current report — wording carried from elsewhere
In February 2021, we issued $1.0 billion aggregate principal amount of 0.00% Convertible Senior Notes due 2026 (the “2026 Notes”) in a private offering. The net proceeds from the offering were approximately $977.2 million, after deducting the initial purchasers’ discounts and commissions and our offering expenses. The 2026 Notes did not bear regular interest, and the principal amount of the 2026 Notes did not accrete. The 2026 Notes matured on February 15, 2026, and during the three months ended March 31, 2026, we repaid in cash the remaining $199.0 million aggregate principal amount of the 2026 Notes.