Peloton Just Posted Its First Full Year of Profits. Here's Why I'm Still Not Buying the Stock.
Cost savings boosted net income and free cash flow, but revenue remained flat last quarter.
Overview
Peloton Interactive (NASDAQ: PTON) just reached an important milestone, posting its first profitable year. Free cash flow grew 17% year over year in fiscal 2026 (ended in June), yet the stock still fell after earnings even though it trades at just 7 times free cash flow.
Despite the cheap valuation, I'm not tempted to buy. Peloton offered weak fiscal 2027 guidance, a sign that the business still faces major headwinds to revenue growth.
Image source: The Motley Fool.
Details
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Originally published at www.fool.com.
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