Peloton Interactive's stock surged 5.19% in pre-market trading following the release of its third-quarter fiscal 2026 financial results, which showed the company returning to profitability and beating revenue expectations.

The fitness company reported Q3 revenue of $631 million, exceeding the IBES estimate of $617.6 million and representing a 1% year-over-year increase. Notably, Peloton swung to a net income of $26 million from a loss in the comparable period. The company also reported a 41% climb in adjusted EBITDA to $126 million and a 59% rise in free cash flow to $151 million.

Peloton raised its full-year revenue outlook to a range of $2.42 billion to $2.44 billion and is targeting approximately $350 million in free cash flow. Additionally, the company announced the launch of new Commercial Series Tread and Bike products and a content-licensing partnership with Spotify, factors that are likely contributing to positive investor sentiment.