peloton is betting that a revamped treadmill, AI and new distribution channels will help it return to sustained growth.
The connected fitness company on Tuesday announced three new treadmills and new features for its Peloton IQ artificial intelligence platform with tools for runners, walkers, and hikers. Peloton aims to expand its customer base from people looking for a more affordable, space-saving treadmill to experienced athletes looking for personalized coaching.
“From record numbers of marathon participants around the world to the rise of local running clubs, we’re rediscovering the joy of running, walking and hiking,” CEO Peter Stern said in a press release.
However, the risks are still higher than simply selling new equipment. The stock has fallen 43% since Mr. Stern took over in January 2025.
New Peloton tread lineup including the first folding model.
Provided by: Peloton
Peloton has spent the past few years cutting costs, restructuring its business and repairing its balance sheet after a pandemic-era connected fitness boom gave way to a sharp slowdown in demand. The company has returned to profitability and improved cash generation, but revenue growth is a challenge as subscriptions continue to decline.
Now, Stern is more focused on expanding the company’s potential revenue streams.
“By expanding our treadmill portfolio and releasing AI-powered software for runners, we will be able to connect with a broader audience,” Stern said.
Peloton said the treadmill relaunch also addresses the company’s longstanding challenge of getting consumers to buy expensive equipment that takes up a lot of space.
Prices for the Tread Flex start at $2,195, making it the lowest priced treadmill in Peloton’s new hardware and first-ever folding model. The new treadmill can be cut in size by nearly half, potentially widening the product’s appeal among consumers with limited space or equipment budgets.
At the other end of the lineup, Peloton is pegging the $6,695 Tread+ Vision at the same price. The price of the mid-range TreadVision model will also increase by $200 to $3,495.
High-end products include motion-tracking cameras that provide insight into a user’s running form. Tread+ Vision also includes a sled mode that allows users to add up to 300 pounds of resistance for strength training as hybrid races like Hyrox become increasingly popular.
AI-powered running coach
The wide range of prices raises questions about how Peloton will maintain buyer interest.
That’s where Peloton IQ comes into play.
Peloton launched the service last year as an AI-powered software system for personalized recommendations and coaching. The company is currently expanding its functionality by adding features specifically for runners.
A new running analysis feature uses live video to score your running efficiency and provides personalized pace, form, and heart rate guidance, as well as feedback from an in-person coach.
This strategy moves Peloton further away from just a screen attached to exercise equipment. The company positions hardware, content, and data as a connected training system.
“Peloton’s advantage has always been the sum of its parts,” Chief Product Officer Nick Caldwell said in a release. “It’s about instructors and content you love, software that simplifies health, and equipment that fits seamlessly into your life and changes your routine.”
This could be especially important as Peloton seeks to reach more experienced and wealthy athletes who may already be using the company’s products. garminWhoop and other fitness platforms.
Peloton already integrates with Apple Health, Fitbit, and Garmin Connect. Now, Whoop has been added, allowing members to connect their accounts and have their Peloton workouts contribute to personalized insights in the Whoop app.
The company is doubling down on the broader running boom, offering more than 17,000 Tread-specific classes and adding race training programs designed to get members fully trained for events like the New York City Marathon.
But the important question for investors isn’t whether the new product provides a better exercise experience than the old one. The question is whether it can change Peloton’s growth trajectory.
Trust analyst Youssef Squali told CNBC in a statement that the company expects “revenues to remain fairly subdued given continued headwinds to subscriber growth.” He said the company expects next calendar year to be a better year for Peloton due to hardware and software improvements and debt refinancing.
Squali rates the stock a “buy” and has a price target of $9 per share, compared to Monday’s closing price of $4.95 per share.
The equipment changes add to the various efforts Peloton is making to strengthen its business.
The company recently expanded its content distribution through a partnership with Spotify, offering more than 1,400 Peloton strength training and wellness classes to Spotify Premium subscribers. The company is also building a commercial fitness business, selling more durable versions of its equipment to hotels, apartments, gyms and other high-use environments.
Peloton has spent years focused on cutting costs and stabilizing its finances, but now it’s trying to convince investors it can grow the business again.
The holiday season will be an early test of that strategy.
