During the FY 2025 Q4 earnings call, Peloton leadership provided new details on how tariffs are affecting the business, and how they could evolve in the coming months.
Chief Financial Officer (CFO) Liz Coddington addressed the topic during the Q&A portion, noting that while Peloton manufactures some Precor products in the United States, it is still subject to a variety of country-specific reciprocal tariffs on imported equipment. Coddingston stated:
“While we manufacture some Precor products in the US, we are subject to country specific reciprocal tariffs for Peloton and Precor equipment, including but not limited to Peloton and Precor equipment imported from Taiwan and other Precor products imported from China.”
She also highlighted that while Peloton’s tablets currently benefit from a tariff exemption for computers, that could soon change. Coddington stated:
“We anticipate that our imported tablets from Thailand may become subject to a country specific reciprocal tariff rate within the coming months.”
Additionally, both Peloton and Precor imported equipment are subject to a 50% tariff on their aluminum content.
Coddington estimated Peloton’s anticipated tariff exposure at roughly $65 million in FY 2026. Despite this, the company remains committed to its target of generating at least $200 million in free cash flow that year. However, Coddington cautioned that tariff exposure could shift if rates or trade policies change.
Peloton’s 10-Q filing reiterated the potential risks, stating that the impact of tariffs will depend on multiple factors; including whether they are implemented, the scope of the measures, and the timing.
Earlier this year, Peloton had stated that they did not expect a large impact from potential tariffs. However, in this latest earnings letter and call, leadership acknowledged that tariffs are one of the reasons behind upcoming price adjustments, which we previously reported on.
We saw one of those price adjustments roll out recently with the addition of assembly fees.
Support the site! Enjoy the news & guides we provide? Help us keep bringing you the news. Pelo Buddy is completely free, but you can help support the site with a one-time or monthly donation that will go to our writers, editors, and more. Find out more details here.
Get Our Newsletter Want to be sure to never miss any Peloton news? Sign up for our newsletter and get all the latest Peloton updates & Peloton rumors sent directly to your inbox.
Leave a Reply