Peloton Interactive, Inc. — Earnings Quality Grade F
PTON · Consumer Cyclical
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 15 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue -7.8%, CFFO 603.8%. Cash follows revenue
Expense Quality
Inventory -37.6% vs COGS -18.2%. Normal
CapEx growth -52.8% vs revenue -7.8%. Normal
SG&A/Gross Profit = 72.1%, exceeds 70%
Gross margin swung +6.2pp (44.7% → 50.9%)
Cash Flow Quality
CFFO < Net Income for 3 consecutive years
FCF $0.3B, FCF/NI = -2.72
Accruals ratio = -21.3%. Low accruals
Cash $1.0B covers 53% of debt $2.0B
Balance Sheet Health
Goodwill+Intangibles $0.0B = -11% of equity. Manageable
Debt/EBITDA = 18.2x (>4x). Interest coverage = 0.5x (<2x). Financial stress
Other assets -15.1% vs revenue -7.8%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 2/3 years
Goodwill+Intangibles change -16% YoY. Normal
Manipulation Score
M-Score = -3.58 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25