Peloton Interactive, Inc.

Thank you for standing by. My name is Karen and I will be your conference operator today. At this time, I would like to welcome everyone to the Peloton Interactive first quarter fiscal year 2026 earnings call. All lines have been placed on mute to prevent any background noise. After today's presentation, there will be an opportunity to ask questions. To ask a question, You may press star followed by the number one on your telephone keypad. To withdraw your question, you may press star followed by the number one again. I will now turn the call over to James Marsh, SVP of Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon and welcome to Peloton's first quarter fiscal 2026 conference call. Joining today's call are Peloton Chief Executive Officer and President Peter Stern and Chief Financial Officer Liz Coddington. Our comments and responses to your questions reflect management's views as of today only and will include forward-looking statements related to our business under federal securities law. Actual results may differ materially from those contained in or implied by these forward-looking statements due to risks and uncertainties associated with our business. Please refer to our SEC filings and today's press release, both of which can be found on our investor relations website, for discussion of our material risks and other important factors that could impact our results. During this call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is provided in today's press release. I'll now turn the call over to Peter.

Thank you, James. Good afternoon, everyone, and thank you for joining today's call. Before I summarize our performance in Q1, I'd like to address our voluntary recall announced earlier today. As previously disclosed, we have received a small number of reports of an original series bike plus seat post breaking during use. As of today, we are aware of three such incidents. The well-being of our members is our highest priority, and therefore, In cooperation with the U.S. Consumer Product Safety Commission and Health Canada, we are voluntarily recalling approximately 833,000 units in the U.S. and approximately 44,800 units in Canada of the original Series Bike Plus model. These units were manufactured from December 2019 to July 2022 and sold beginning in 2020 to April 2025. We are offering an updated self-installable seat post replacement, which is the CPSC-approved remedy. Impacted members will receive an email with order instructions, and a notification will also appear on their Bike Plus touchscreen. This recall does not impact any other equipment models, including our new cross-training series Bike and Bike Plus. The anticipated financial impact is reflected in our results and our guidance. including the increases to our adjusted EBITDA guidance and minimum free cash flow target. Liz will share more details about the financial impact later in this call. Turning our attention to the first quarter of the fiscal year, I am proud of Peloton. In the quarter leading up to our October 1st innovation reveal, our team once again successfully executed on our business priorities, progressed our financial results, and delivered positive human impact at scale. As a result, our performance came in above the guidance range on most key financial metrics in this seasonally slower quarter for fitness equipment sales. And we continued to see year-over-year growth in average workout time per connected fitness subscription. Looking from the outside in during the first quarter, it may have felt like business as usual. As we continued to demonstrate financial discipline and established a strong foundation for achieving our full-year financial guidance. But behind the scenes, the quarter was anything but. Throughout the quarter, the Peloton team was hard at work setting the stage for our new chapter by innovating on every aspect of our magic formula of premium equipment, software powered by AI, world-class instructors, and a deeply engaged community. In last quarter's remarks, I laid out Peloton's strategy. The first and most foundational part of that strategy is our commitment to improving member outcomes. To that end, on October 1st, we simultaneously unveiled and began shipping the most significant product update in our history with an all-new equipment lineup, the Peloton Cross Training Series and the Peloton Pro Series. Our understanding of human health has progressed since Peloton took the world by storm with the introduction of the original bike. And today we know that adults need to pursue a combination of cardio, strength, and more to achieve their wellness goals. To that end, all Peloton products now feature advanced swivel screens, allowing members to easily transition between cardio and strength to complete floor workouts including strength, yoga, Pilates, and stretching. Our new plus line includes an advanced computer vision movement tracking camera that counts your reps, corrects your form, and offers weight suggestions in real time, along with voice control, enabling members to adjust weights, skip moves, or pause their workout without touching a thing. We've made several additional upgrades, including improvements in audio across the board, and featuring sound by Sonos in our plus line for a studio-like experience. On October 1, we also launched Peloton IQ, which gives every Peloton member a personalized coach, regardless of whether they own our new cross-training series, our original series, or work out with a Peloton app subscription. Peloton IQ uses AI to turn years of insights and data points, including your goals, class activity, and health stats from wearable devices, into personal training guidance. In so doing, Peloton IQ makes some of the benefits of personal training accessible to millions of people, providing individual insights and recommendations based on members' intentions, preferences, level of fitness, and performance. Since launching the Cross-Training Series and Peloton IQ, we've observed a favorable mixed shift toward our more premium products, including a mixed shift toward Dread Sales and toward our Plus line of products, the latter of which we believe is driven by excitement around the advanced computer vision features. Beyond our work on cardio and strength, the trust we've built with our community gives us an opportunity to address an even broader array of wellness domains. In September, we acquired Breathwork, an award-winning app specializing in breathing exercises, which have been shown to positively impact sleep, focus, blood pressure, heart rate variability, stress, and anxiety. The Breathwork subscription app makes mental fitness accessible to all, and now our members can enjoy Breathwork as part of their all-access or App Plus subscriptions. We'll have more to share over time as we evolve in this important category. We also announced a first-of-its-kind collaboration with the Hospital for Special Surgery, the world leader in orthopedics, to offer Peloton members access to expert care for joint and muscle pain, injuries, and orthopedic conditions. We've co-developed class collections with HSS medical experts, recently launching the first five on preventing some of the most common types of injuries. We're also committed to meeting members where they are in their life stages. In response to member demand, we started with menopause, a life stage that impacts the majority of our members at some point in their lives. We're extremely proud of our partnership with Respin Health, founded by Halle Berry to revolutionize menopause care with an integrated, holistic approach, and have just launched a study with over 1,000 women to measure the benefits of targeted movement strategies and other evidence-based lifestyle interventions. These findings will power our evolving evidence-based exercise programming and menopause support. The second part of our strategy is to meet members everywhere. We have made great progress on this front over the past few weeks, We now have 10 micro stores in the US, up from one prior to Q1. And we also announced a new retail partnership with Johnson Fitness and Wellness, the nation's largest independent fitness retailer with 100 locations across the US. We now have a physical retail presence in 46 states, while in Australia we launched a retail presence in 11 franchise locations throughout the country. Our expanded retail footprint positions us well for the holiday season. providing opportunities for consumers to test and experience our new innovations. Our commercial business unit continues to show strong performance and is an area in which we are also innovating. The new Peloton Pro series offers a complete lineup of Peloton equipment for commercial environments, such as hotel gyms and multi-residential buildings, and includes the Tread Plus Pro, Peloton's first-ever commercial treadmill. And Precor launched its new commercial tread, The Breakaway. This new slat belt treadmill includes a sled-style push mode, cadence coach, and a new console design. Peloton also recently became the primary fitness partner powering Utah City, a 700-acre mixed-use development outside of Salt Lake City. And now every residential building in Utah City will feature a Peloton space that includes several pieces of Peloton equipment and accessories for residents. The third part of our strategy is to make members for life. Celebrating achievement is crucial for sticking with any program. So last month we launched Club Peloton, our first loyalty and recognition program. As members engage with our platform, they progress through levels from bronze to legend, unlocking exclusive content, recognition, and rewards. Already more than 500,000 members have engaged with Club Peloton. On October 1st, we also introduced official Peloton teams led by Peloton instructors, including Move for Life, Menopause, High Rocks, and Cross Training. These teams provide a forum for members to connect, discuss goals, and learn from each other and from experts, further elevating Peloton's community. Since October 1, engagement with teams is up nearly 50%. Ultimately, all these strategic initiatives, product innovation, wellness expansion, and new distribution are underpinned by the fourth part of our strategy, our commitment to operational discipline and business excellence. Our full-year guidance announced in August included targeted initiatives to improve monetization, such as the introduction of expert assembly fees. These were implemented within the quarter and exceeded our expectations. At the same time, our cost reduction plans remain on track. Perhaps most important, we remain confident in our ability to inflect toward revenue growth as the fiscal year progresses, building on the actions we took in Q1 and on October 1st. We continue to monitor and respond to evolving tariff policies and broader changes in the macro environment and consumer spending. While those external factors are real, our focus remains on execution and being the best fitness and wellness partner to our members. We believe we offer an unmatched ecosystem of products and experiences to help our members invest in their health and well-being. As we enter this important holiday season, Peloton is exceptionally well positioned with great new equipment, Peloton IQ, new wellness partnerships, expanded distribution, a resurgent commercial business unit, new loyalty features, successful monetization changes, and improvements in our financial performance. I'll now pass it over to Liz, who will share more details about our Q1 financial results and guidance for the remainder of the year.