PTON

Consumer Cyclical

Peloton Interactive, Inc. · Leisure · $2B

UQS Score — Balanced Preset
47.8
Below Average

Peloton Interactive, Inc. scores 47.8/100 using the Balanced preset.

UQS vs Consumer Cyclical Sector
PTON
47.8
Sector avg
37.7
Quality
Neutral
Moat
Weak
Growth
Neutral
Risk
Good
Valuation
Good

What is Peloton Interactive, Inc.?

Peloton Interactive connects fitness enthusiasts to live and on-demand classes through its lineup of internet-connected exercise equipment and a companion digital app. Founded in 2012 and headquartered in New York City, the company serves members across North America and select international markets.

Peloton sells connected fitness hardware — stationary bikes and treadmills — each featuring a touchscreen that streams instructor-led classes. Revenue flows from two channels: hardware sales through its own retail showrooms and website, and recurring subscription fees from members who access live and on-demand content. The subscription layer is central to the business model, creating ongoing engagement beyond the initial equipment purchase.

Peloton was founded in 2012 and is headquartered in New York City, US.

  • Peloton Bike and Peloton Bike+
  • Peloton Tread and Peloton Tread+
  • Connected fitness subscriptions for household users
  • Peloton Digital app for class access

Is PTON a Good Stock to Buy?

UQS Score rates PTON as Below Average overall.

Among the five pillars, Valuation stands out as the relative bright spot, rated Good — suggesting the market may already be pricing in much of the company's challenges. Quality and Growth both sit at Neutral, indicating neither a clear deterioration nor a compelling upward trend in the underlying business fundamentals.

The Moat and Risk pillars are both rated Weak, pointing to limited competitive insulation and meaningful financial or operational vulnerabilities that investors should weigh carefully.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does PTON pay dividends?

No — Peloton Interactive, Inc. does not currently pay a dividend.

Peloton does not currently pay a dividend. Given the company's focus on stabilizing its business and managing costs, capital is not being returned to shareholders in this form. Investors seeking income should look elsewhere; those holding PTON are effectively betting on a business turnaround rather than a yield-generating position.

When does PTON report earnings?

Peloton reports earnings on a quarterly cadence, typical for US-listed equities.

Peloton's recent reporting periods have reflected the ongoing challenge of balancing hardware demand with subscription retention. The company has been working to reduce costs while sustaining its member base, and each quarterly release tends to draw attention to subscriber trends and cash flow trajectory.

For the most recent quarter's results, visit Peloton's investor relations page at onepeloton.com.

PTON Price History

-95.5% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Peloton Interactive, Inc.?

$
Today it would be worth
$469
That's a -95.3% total return, or -45.8% annualized.

Based on Peloton Interactive, Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

PTON Long-term Outlook

With Growth and Quality both rated Neutral, Peloton's near-term trajectory appears stabilizing rather than accelerating. The Weak Risk rating signals that execution risk remains elevated — any meaningful improvement likely depends on sustained subscription growth and disciplined cost management. The Good Valuation rating suggests limited additional downside may be priced in, but a genuine re-rating would require demonstrable progress on the moat and profitability fronts.

Growth drivers

  • Expansion of the Peloton Digital app to attract lower-cost subscribers
  • International market development beyond North America
  • Potential partnerships or licensing arrangements to broaden hardware distribution

Key risks

  • Weak competitive moat against lower-cost connected fitness alternatives
  • Ongoing cash flow pressures given the Weak Risk pillar rating
  • Consumer spending sensitivity in the discretionary fitness hardware category

PTON vs Peers

Peloton operates in the broader consumer leisure and entertainment space, where it competes for discretionary spending alongside a range of experience and entertainment-focused companies.

FUNPTON scores higher
Six Flags Entertainment Corporation

Six Flags competes for leisure dollars through physical theme park experiences rather than at-home fitness, representing a different but overlapping claim on consumer discretionary budgets.

PRKSPTON scores lower
United Parks & Resorts Inc.

United Parks targets family entertainment through its resort properties, drawing from the same discretionary spending pool that Peloton taps for fitness subscriptions.

TOY.TOSimilar UQS
Spin Master Corp.

Spin Master focuses on children's toys and entertainment products, competing indirectly with Peloton for household discretionary spending rather than fitness specifically.

Frequently Asked Questions

What does Peloton do?

Peloton sells connected fitness equipment — primarily stationary bikes and treadmills — equipped with touchscreens that stream live and on-demand instructor-led classes. The company also offers a subscription service and a digital app, allowing members to access its content library without owning Peloton hardware.

Does PTON pay dividends?

No, Peloton does not currently pay a dividend. The company is focused on business stabilization and cost reduction rather than returning capital to shareholders. Income-focused investors should be aware that PTON offers no yield at this time.

When does PTON report earnings?

Peloton reports on a quarterly cadence, as is standard for US-listed companies. Exact dates shift each quarter. For the most current schedule, check Peloton's investor relations page directly at onepeloton.com.

Is PTON a good stock to buy?

UQS Score rates PTON as Below Average overall. The Valuation pillar is rated Good, but Moat and Risk are both Weak. Whether that profile suits your portfolio depends on your risk tolerance and investment thesis. The full pillar breakdown is available to UQS Pro members.

Is PTON overvalued?

The UQS Valuation pillar for PTON is rated Good, suggesting the current price may reflect the company's challenges rather than optimistic assumptions. That said, a favorable valuation rating alone does not offset weaknesses in other pillars like Moat and Risk.

How does PTON compare to its competitors?

Peloton's UQS profile — particularly its Weak Moat rating — suggests it has less competitive insulation than many investors would prefer. Compared to peers in the consumer leisure space, Peloton's differentiation rests heavily on its content ecosystem and brand, both of which face ongoing pressure.

What is PTON's market cap bracket?

Peloton is currently classified as a mid-cap stock. This places it in a range where institutional coverage exists but liquidity and volatility can differ meaningfully from large-cap peers in the consumer discretionary sector.

Who founded Peloton?

Peloton was founded in 2012. The founding team and their backgrounds are widely documented in public sources, including Peloton's own corporate history page and major financial news outlets.

Is PTON a long-term quality investment?

Using UQS's long-term quality indicators, PTON's Below Average overall score — driven by Weak Moat and Weak Risk ratings — raises questions about durability. Long-term quality typically requires a defensible competitive position, which the current pillar profile does not strongly support.

What is the main competitive advantage of Peloton?

Peloton's primary competitive advantage has historically been its integrated hardware-and-content ecosystem, which creates switching costs once members are embedded in the platform. However, the UQS Moat pillar rates this as Weak, reflecting growing competition from lower-cost alternatives and the difficulty of sustaining that edge.

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Pro Analysis

PTON — Score History

3540455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 11 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 23, 202647.842.425.041.871.179.5+4.8
May 7, 202643.045.125.041.837.576.8+0.1
May 5, 202642.945.125.041.837.576.3-0.1
May 3, 202643.045.125.041.937.576.30.0
Apr 26, 202643.045.125.041.937.576.9-0.1
Apr 19, 202643.145.125.041.937.577.2-0.1
Apr 18, 202643.245.125.041.937.578.3-1.3
Apr 14, 202644.545.125.041.937.586.6-0.1
Apr 12, 202644.645.125.041.937.587.00.0
Apr 5, 202644.645.125.041.937.587.2-0.2

PTON — Pillar Breakdown

Quality

42.4/100 (25%)

Peloton Interactive, Inc. has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsStrong

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

41.8/100 (20%)

Peloton Interactive, Inc. shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

71.1/100 (15%)

Peloton Interactive, Inc. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

Valuation

79.5/100 (15%)

Peloton Interactive, Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorModerate

Enterprise value multiple relative to sector median.

Moat

25/100 (25%)

Peloton Interactive, Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for PTON.

Score Composition

Quality
42.4×25%10.6
Growth
41.8×20%8.4
Risk
71.1×15%10.7
Valuation
79.5×15%11.9
Moat
25.0×25%6.3
Total
47.8Below Average

Financial Data

More Stock Analysis

How is the PTON UQS Score Calculated?

The UQS (Unified Quality Score) for Peloton Interactive, Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Peloton Interactive, Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Peloton Interactive, Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.