Peloton Interactive Inc. is preparing to kick off its second comeback attempt in three years, following a previous effort that fell short of expectations and lacked any major consumer-facing upgrades.
The New York-based fitness company is set to introduce refreshed hardware and a software overhaul that bakes in artificial intelligence for personalisation, Bloomberg News has reported.
It also has been working on new first-party accessories and changes to its sales strategy to offer more refurbished equipment and broaden its self-assembly options.
The launch, taking place this week, is Peloton’s first major product unveiling in years and comes at a time when chief executive officer Peter Stern, a former Apple Inc. executive, is working to reshape the pioneering brand into an AI-focused health and wellness company.
What’s Ahead
Peloton is planning to refresh the vast majority of its hardware line, including its bikes, treadmills and row equipment. The changes will include the low-end Bike getting a rotating screen, while new premium versions of some of its products, like the Tread+ and Row+, will receive more personalised AI capabilities. (Peloton’s first rowing machine has not sold well since arriving three years ago.)
In addition, Peloton is plotting an expansion into branded accessories like an air fan, alternative seat option and smartphone holder — peripherals the company has until now left to third parties. To reduce costs, the company also plans to encourage more self-assembly for direct sales and is considering selling refurbished treadmills.
Marketing will play a pivotal role in this new chapter as Peloton shifts its message from simply getting in shape to improving quality of life and extending healthy years through better lifestyle choices. More recent marketing messaging has made the point that the brand is also intended for male users and isn’t just a bike company. Now it will shift toward more aspirational brand identity.
AI will also be central to the company’s long-term strategy. Known internally as Peloton Intelligence, a new AI platform will make workouts more personalised to each user and push them to adopt upgraded hardware and subscriptions that support more advanced functionality.
Artificial intelligence could also help members find the best workout from Peloton’s library to match their needs, reducing reliance on only what’s most recent and potentially trim the number of new classes. The company says it wants to free instructors up for other projects and get them out in the real world to connect with members and expand the member base.
International expansion is another priority. The company intends to to scale globally to meet the need for more native instructors. Although it currently operates studios in the US, Canada, UK, Germany, Austria and Australia, language differences, such as the prevalence of French in Quebec, has restricted expansion somewhat.
Here, too, the company sees a role for AI. Dubbing technology could help amplify the reach of new and existing instructors in translating classes into multiple languages. Workouts will also evolve toward more personalised, instructor-guided experiences. Rather than an instructor calling out a range of pace and or resistance, AI could help users set personalised targets.
Troubled Times
When Stern joined Peloton earlier this year, his focus was on cutting costs and rebuilding the company with a heavy emphasis on AI and hardware. Last month, Peloton eliminated about 6 percent of its staff and projected a sales decline for the current quarter. Full-year revenue for fiscal 2026 will drop 2 percent, according to company forecasts, though the company said it now has the money to pay down its own debt.
At the same time, Stern continues to bolster Peloton’s executive ranks, bringing on executives from companies like Apple and iRobot Corp. to oversee its next push. The company is also working to recover from years of reputational damage and rebuild confidence among its workforce. Many people internally view Stern as the right candidate to turn the ship around.
Peloton had been a tech-industry darling during the early days of the pandemic, when locked-down consumers snapped up its stationary bikes and subscription plans. But in the years since, it’s struggled with sales declines as more people have returned to regularly exercising outdoors and in gyms. Some early employees interviewed by Bloomberg attribute its downfall to culture issues that began as far back as its 2019 IPO.
Initially, Peloton struggled to attract applicants, but over time people lined up to work at a company that seemingly went viral overnight. This rapid expansion caused internal friction, leading to a decline in morale as new talent clashed with original staff, according to several people familiar with the matter.
Overly ambitious plans led by co-founder John Foley, such as establishing a $400 million facility in Ohio as its first US factory, never came to light. In some cases, job offers were rescinded days before start dates, or new hires were dismissed shortly after joining, said some of the people, who asked not to be identified discussing private matters.
Peloton also drew criticism for mishandling its brand’s appearance in the “Sex and the City” reboot “And Just Like That,” where the death of Mr. Big on a Peloton bike caught the company off guard. It struck out with the failed Peloton Guide, an artificial intelligence-powered, TV-mounted product that tracked movements and offered strength training assistance. It had a plan to compete with Tonal, the AI smart gym, but that product never launched. And it misread market demand by overproducing equipment.
The company was set back further in 2021 after the US Consumer Product Safety Commission recalled the Tread and Tread+ treadmills, saying the heavy display could become loose and fall off. The company eventually fixed the problem but otherwise never meaningfully revamped the hardware.
After Foley’s exit, Barry McCarthy — a former Netflix Inc. and Spotify Technology SA executive — became CEO and aimed to stabilise finances. He ended in-house bike production, cut hundreds of jobs, raised prices and closed many of retail stores. But challenges persisted, and he resigned in May 2024.
By Samantha Kelly
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