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Peloton Interactive (FRA:2ON) Gross Margin % : 51.85% (As of Sep. 2024)


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What is Peloton Interactive Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Peloton Interactive's Gross Profit for the three months ended in Sep. 2024 was €274 Mil. Peloton Interactive's Revenue for the three months ended in Sep. 2024 was €528 Mil. Therefore, Peloton Interactive's Gross Margin % for the quarter that ended in Sep. 2024 was 51.85%.

Warning Sign:

Peloton Interactive Inc gross margin has been in long-term decline. The average rate of decline per year is -3.6%.


The historical rank and industry rank for Peloton Interactive's Gross Margin % or its related term are showing as below:

FRA:2ON' s Gross Margin % Range Over the Past 10 Years
Min: 19.5   Med: 39.04   Max: 45.88
Current: 45.52


During the past 8 years, the highest Gross Margin % of Peloton Interactive was 45.88%. The lowest was 19.50%. And the median was 39.04%.

FRA:2ON's Gross Margin % is ranked better than
53% of 766 companies
in the Travel & Leisure industry
Industry Median: 43.675 vs FRA:2ON: 45.52

Peloton Interactive had a gross margin of 51.85% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Peloton Interactive was -3.60% per year.


Peloton Interactive Gross Margin % Historical Data

The historical data trend for Peloton Interactive's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Peloton Interactive Gross Margin % Chart

Peloton Interactive Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Gross Margin %
Get a 7-Day Free Trial 45.88 36.16 19.50 32.98 44.68

Peloton Interactive Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 47.92 40.26 43.15 48.48 51.85

Competitive Comparison of Peloton Interactive's Gross Margin %

For the Leisure subindustry, Peloton Interactive's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Peloton Interactive's Gross Margin % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Peloton Interactive's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Peloton Interactive's Gross Margin % falls into.



Peloton Interactive Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Peloton Interactive's Gross Margin for the fiscal year that ended in Jun. 2024 is calculated as

Gross Margin % (A: Jun. 2024 )=Gross Profit (A: Jun. 2024 ) / Revenue (A: Jun. 2024 )
=1120.8 / 2508.672
=(Revenue - Cost of Goods Sold) / Revenue
=(2508.672 - 1387.833) / 2508.672
=44.68 %

Peloton Interactive's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=273.7 / 527.896
=(Revenue - Cost of Goods Sold) / Revenue
=(527.896 - 254.172) / 527.896
=51.85 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Peloton Interactive  (FRA:2ON) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Peloton Interactive had a gross margin of 51.85% for the quarter that ended in Sep. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Peloton Interactive Gross Margin % Related Terms

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Peloton Interactive Business Description

Address
441 Ninth Avenue, Sixth Floor, New York, NY, USA, 10001
Peloton Interactive Inc operates an interactive fitness platform. It operates its business in two reportable segments: Connected Fitness Products and Subscription. Connected Fitness Product revenue consists of bike and tread and related accessories sales, associated fees for delivery and installation, and extended warranty agreements. Subscription revenue is generated from monthly Connected Fitness Subscription and Digital Subscription. The company generates maximum revenue from the Subscription segment. Geographically, the company derives a majority of its revenue from North America and the rest from the International markets.

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