The clear answer is no. As of February 2026, Peloton is not facing imminent bankruptcy, but it is undergoing a significant restructuring to stabilise its finances and return to sustainable growth.

Key takeaways:

• Peloton reported positive free cash flow of 67 million dollars in Q1 FY2026.
• Revenue and subscriptions have declined year on year.
• The company is cutting costs and shifting towards an app and AI-driven model.
• Services and subscriptions continue to operate for UK customers.

This analysis is based on recent financial results, executive statements, and verified investor updates.

Is Peloton Going Out of Business Right Now, or is It “stabilising”?

Peloton is not going out of business right now. Instead, it is in what executives describe as a stabilisation phase, where the focus has shifted from aggressive expansion to financial discipline and long-term sustainability.

Recent reports confirm that the company is no longer in immediate danger of collapse following cost-cutting measures, debt refinancing, and operational restructuring.

The difference between collapse and stabilisation is important. While revenue has fallen and subscriber numbers have dipped, Peloton has generated positive free cash flow and narrowed losses compared with previous periods. That signals operational control rather than distress.

In simple terms, Peloton is shrinking to survive. It is becoming smaller, leaner, and more focused on profitability rather than rapid growth.

For UK observers asking if Peloton is going out of business, the current evidence suggests restructuring rather than shutdown.

What Do the Latest Peloton Financial Results Actually Say?

The latest financial results provide the clearest answer to the question of whether Peloton is going out of business. In its first quarter fiscal 2026 update, Peloton reported mixed but stabilising performance.

Revenue declined year on year, yet profitability metrics improved. The company also raised its full-year Adjusted EBITDA guidance, which indicates confidence in cost control and margin improvement.

Key figures readers should know at a glance:

• Total Revenue in Q1 FY2026 was 551 million dollars, down 6 percent year on year.
• GAAP Net Income was 14 million dollars.
• Adjusted EBITDA reached 118 million dollars, up 2 percent year on year.
• Free Cash Flow was positive at 67 million dollars.
• Ending Paid Connected Fitness Subscriptions stood at 2.732 million, down 6 percent year on year.
• Subscription Revenue was 398.4 million dollars, down 7 percent year on year.
• Total Gross Margin was 51.5 percent.

These figures show a company under pressure but not collapsing. Positive free cash flow of 67 million dollars marks a significant turnaround from earlier periods of heavy losses. Cash provided by operating activities reached 72 million dollars, strengthening liquidity.

However, subscriber declines remain a concern. Connected fitness subscriptions fell by 164,000 compared with the prior year. Paid app subscriptions also slipped, reflecting softer demand in the broader digital fitness market.

Looking ahead, Peloton forecasts Q2 FY26 revenue between 665 million and 685 million dollars. Adjusted EBITDA is expected to be between 55 million and 75 million dollars.

For the full year FY26, revenue guidance ranges from 2.4 billion to 2.5 billion dollars, representing a slight year-on-year decline at the midpoint.

Chief Executive Officer Peter Stern said the quarter demonstrated disciplined execution and bottom-line momentum.

He stated that innovation, including new equipment launches and Peloton IQ, is expected to support improved top-line performance as the fiscal year progresses.

When asking is peloton going out of business, these financial results show contraction but also financial stabilisation.

Why Are Peloton’s Sales and Subscriptions Still Falling?

Peloton’s sales and subscription numbers are still falling largely due to post pandemic market shifts and softer hardware demand.

During lockdowns, the company experienced extraordinary growth as home workouts surged. That demand has normalised.

Several factors explain the continued decline:

• Consumers have returned to gyms and outdoor fitness activities.
• Inflation and cost pressures have reduced discretionary spending.
• Hardware replacement cycles are slowing.
• Competition from other digital fitness platforms has intensified.

In Q1 FY2026, subscription revenue fell 7 percent year on year, while connected fitness product revenue also declined. Even though churn improved slightly, the total subscription base is smaller.

For UK consumers, the broader cost-of-living environment may also influence purchasing decisions around premium fitness equipment.

These trends help explain why the question of Peloton going out of business keeps resurfacing, even though the underlying issue is reduced demand rather than insolvency.

What Does the CFO Departure and Leadership Change Mean for Confidence?

Leadership transitions often raise concerns about corporate stability. Peloton recently announced that its Chief Financial Officer, Liz Coddington, would be leaving to pursue another opportunity, with a search underway for a successor.

Such departures can unsettle investors, particularly during a restructuring phase.

However, context matters. The company has also brought in a new Chief Executive Officer, Peter Stern, who is leading the strategic pivot towards AI-powered coaching and a refreshed hardware portfolio.

In official statements, Stern emphasised disciplined execution and confidence in returning Peloton to profitable growth.

Leadership change can signal either instability or renewal. In this case, the financial results suggest operational continuity rather than crisis.

For those asking is peloton going out of business, executive turnover alone does not indicate imminent collapse, though it does reflect a company in transition.

Is Peloton Shrinking on Purpose, and What Does “restructuring” Involve?

Peloton is intentionally shrinking as part of its restructuring strategy.

The objective is to align operating expenses with lower revenue levels and restore profitability.

Key elements of restructuring include:

• Workforce reductions, including reported staff cuts of around 11 percent.
• Cost-saving initiatives across operations.
• Debt refinancing to strengthen the balance sheet.
• Shifting manufacturing to third-party partners to reduce inventory risk.

By outsourcing equipment production, Peloton lowers capital requirements and avoids excess stock build up. Operating expenses in Q1 FY2026 were significantly reduced compared with prior periods, reflecting tighter cost control.

Restructuring is rarely comfortable, but it can improve financial resilience. Rather than signalling that Peloton is going out of business, these actions show a company adapting to a smaller market opportunity while prioritising cash flow and margins.

Is Peloton Moving Away From Bikes and Treadmills Towards the App?

Peloton is not abandoning bikes and treadmills, but it is clearly expanding beyond a hardware-first identity. The introduction of Peloton IQ highlights a stronger focus on personalised digital coaching and data-driven insights layered onto instructor-led classes.

The company has refreshed its hardware portfolio with the Cross Training Series and introduced a Pro Series for commercial environments. At the same time, it has acquired wellness app Breathwrk and formed partnerships aimed at broadening its ecosystem.

This signals evolution rather than retreat. Hardware remains important, yet the long-term strategy appears centred on recurring subscription revenue and digital engagement.

For UK readers wondering whether Peloton is peloton going out of business, the pivot suggests transformation rather than withdrawal from the market.

What Does This Mean for Peloton Customers in the UK?

For UK customers, the most immediate concern is service continuity. Current evidence indicates that subscriptions, live classes, and the content library continue to function during restructuring.

Important considerations include:

• Subscription services remain active and supported.
• Positive free cash flow supports operational continuity.
• Some older first-generation tablets have lost access to live classes as part of cost measures.
• Future pricing or policy adjustments cannot be ruled out.

Peloton’s strategy aims to protect its core subscription base, which generates recurring revenue. Increased average workout time per connected fitness subscription, up 5 percent year on year, indicates ongoing engagement.

For UK users asking if Peloton is going out of business, the practical answer is that bikes and memberships are still operational, though the company is prioritising efficiency and digital services.

What Are the Most Common Rumours About Peloton, and What Are the Facts?

Rumours often intensify when share prices fall or revenue declines. In Peloton’s case, dramatic comparisons to its lockdown peak valuation have fuelled speculation.

Common rumours include:

• Bankruptcy is imminent.
• Bikes will stop working if the company fails.
• The brand will disappear from the UK market.

The facts are more measured:

• Peloton generated 67 million dollars in free cash flow in Q1 FY2026.
• The company raised its full-year Adjusted EBITDA guidance.
• Services and subscriptions remain active.

Revenue has fallen 6 percent year on year, and subscription totals have declined, but these indicators reflect contraction rather than collapse.

The question of Peloton going out of business persists because of past volatility, yet current financial data does not support an imminent shutdown scenario.

What Future Plans Could Actually Rebuild Growth?

Peloton’s future growth strategy focuses on innovation, partnerships, and disciplined financial management. The company has launched new hardware lines and expanded retail partnerships internationally.

Chief Executive Officer Peter Stern stated that innovation and community growth are central to returning Peloton to profitable growth. Peloton IQ aims to enhance engagement through AI-powered insights, potentially improving retention.

Full year FY26 guidance includes Adjusted EBITDA between 425 million and 475 million dollars and a minimum free cash flow target of 250 million dollars. If achieved, these targets would strengthen financial confidence.

The question is whether Peloton’s going out of business will likely fade if subscription numbers stabilise and revenue declines slow. Sustainable cash generation remains the key benchmark.

So, is Peloton Going Out of Business in the Uk? What’s the Verdict?

The verdict is clear. Peloton is not going out of business in the UK at present, but it is operating in a reduced growth environment and undergoing significant restructuring.

Revenue and subscription declines show ongoing pressure. However, positive free cash flow, raised EBITDA guidance, and cost discipline indicate financial stabilisation. Leadership changes and strategic pivots reflect adaptation rather than surrender.

For UK customers and investors, the situation is best described as a cautious recovery. Peloton is smaller, more focused, and less reliant on hardware expansion than during its lockdown peak.

While risks remain, the available financial evidence suggests survival and recalibration, not imminent closure.

FAQs

Is Peloton financially stable in 2026?

Peloton reported positive free cash flow and net income in Q1 FY2026. However, revenue and subscriptions have declined year on year.

Are Peloton subscriptions still working in the UK?

Yes, subscription services and digital classes continue to operate. There has been no announcement of a UK service shutdown.

Why did Peloton’s revenue fall?

Revenue declined due to lower hardware sales and fewer subscriptions. Post-pandemic demand shifts have reduced growth.

Has Peloton made staff cuts recently?

Yes, the company has implemented workforce reductions to align costs with lower revenue. This forms part of its restructuring plan.

What is Peloton IQ?

Peloton IQ is an AI-powered feature designed to deliver personalised guidance and insights. It aims to improve engagement and retention.

Did Peloton raise its financial guidance?

Yes, the company raised its full-year FY26 Adjusted EBITDA guidance. It also set a higher minimum free cash flow target.

Could Peloton be acquired by another company?

There has been speculation in the market, but no confirmed acquisition plans. The current strategy focuses on independent restructuring.