New York, May 22, 2026, 18:02 (EDT)
- Shares of Peloton ended 10.23% higher at $5.71. S&P Dow Jones Indices said it’s set to add Peloton to the S&P SmallCap 600 before trading starts on May 27.
- The stock saw volume more than double its 50-day average as U.S. equity markets prepare for the Memorial Day break on May 25.
- The rally is tied to index demand and Peloton’s recent move toward better cash flow. Subscriber growth is still the key hurdle.
Peloton Interactive shares climbed Friday. S&P Dow Jones Indices said Peloton will be added to the S&P SmallCap 600. The move gave the connected-fitness stock a strong index pop just ahead of the long U.S. market weekend.
Peloton jumped 10.23% to close at $5.71, marking a second day of gains. Trading volume hit 34.9 million shares, well above the 50-day average of 13.7 million, according to MarketWatch. The Nasdaq Composite rose 0.19% and the Dow Jones Industrial Average added 0.58%. Peloton beat Apple, Nike, and Lululemon, which also closed higher.
Peloton is set to join the S&P SmallCap 600 before the open on Wednesday, May 27, according to S&P Dow Jones Indices. The move will take out Enviri Corp. from the index. Funds tracking the S&P SmallCap 600 usually have to change their holdings when the benchmark gets updated.
Peloton now fits into the S&P SmallCap 600, an index tracking smaller U.S. stocks that clear certain liquidity and financial hurdles. For investors, it means Peloton lines up as a clearer small-cap stock, but the move on Friday leaves its business basics—orders, margins and subscribers—unchanged.
Traders have little room. The NYSE’s regular session is set for 9:30 a.m. to 4:00 p.m. ET. U.S. equity markets will close for Memorial Day on Monday, May 25, 2026, so attention turns to Tuesday and the new rules kicking in Wednesday.
The index shift came as Peloton posted some better numbers lately. On May 7, Peloton reported fiscal Q3 revenue up 1% from a year ago at $630.9 million, net income of $26.4 million, and adjusted EBITDA of $126.2 million. Adjusted EBITDA, which means earnings before interest, taxes, depreciation and amortization plus company tweaks, is a common way to measure profit.
Peloton CEO Peter Stern said the company is working to firm up its “financial foundation,” pointing to more revenue, improved adjusted EBITDA, and a big cut in net debt. Peloton said net debt is down 70% from last year, now at $173 million. Peloton Interactive, Inc.
Stern told analysts on the earnings call, “we are no longer operating defensively.” He described the company as having “profound strategic optionality,” which some investors took to mean Peloton could look at refinancing debt, putting money into investments, or capital returns after a permanent CFO is hired. The Motley Fool
Peloton’s interim CFO Saqib Baig said free cash flow hit $151 million for the quarter, which is up 59% from last year. Free cash flow is the cash remaining after operating costs and capital spend. Peloton is guiding for about $350 million in free cash flow for fiscal 2026, and sees revenue in the range of $2.42 billion to $2.44 billion.
Peloton is trying to prove it can expand past selling bikes and treadmills to consumers. Stern told investors the company’s Spotify licensing deal lands over 1,400 Peloton classes in front of Spotify Premium subscribers. Its commercial business grew 14% in the quarter.
Peloton’s outlook has a soft spot. The company said gross additions are still on track to fall from last year. Peloton does not plan to run some third-quarter promotions again in the fourth quarter. It expects to finish with 2.55 million to 2.57 million paid connected-fitness subscriptions, down from 2.662 million at the end of the third quarter. Tariffs are set to pull down full-year free cash flow by about $30 million.
Peloton stock is still a long way from its recent highs. Even after Friday’s jump, MarketWatch data showed shares down 37.93% from the 52-week high of $9.20. The next thing to watch is if index-related buying pushes the stock higher for good, or if the gains fade from here.
