Peloton Bets on Folding Treadmills and AI to Restart Growth

Peloton's stock has dropped 43% since Peter Stern became CEO in January 2025 — and on Tuesday the company answered with three new treadmills, an expanded AI coaching platform and fresh distribution deals aimed at reviving growth.

The connected fitness maker unveiled the hardware alongside new features for Peloton IQ, its artificial intelligence platform, with tools built for runners, walkers and hikers. The push targets a broader customer base, from buyers seeking an affordable, space-saving treadmill to experienced athletes who want personalized coaching.

"From record marathon turnouts around the world to the rise of local run clubs, we're rediscovering the joy of running, walking and hiking," Stern said in a press release.

The stakes extend well beyond selling new equipment. Peloton has spent the past several years cutting costs, restructuring operations and repairing its balance sheet after the pandemic-era boom in connected fitness collapsed into a sharp demand slowdown. The company has returned to profitability and improved cash generation, but revenue growth remains a challenge as subscriptions trend lower. Stern is now putting more emphasis on widening Peloton's potential revenue sources.

"Expanding our treadmill portfolio and launching AI-powered software for runners will allow us to connect with a much wider audience," Stern said.

A folding treadmill at $2,195

The relaunch tackles a long-standing problem: convincing consumers to buy expensive equipment that takes up a lot of space. The Tread Flex starts at $2,195, making it Peloton's lowest-cost treadmill of the new hardware and its first folding model. The machine contracts by nearly half its size, broadening its appeal among consumers with less space or smaller equipment budgets.

At the other end of the lineup, Peloton kept the Tread+ Vision at $6,695. It raised the price of the middle model, the Tread Vision, by $200 to $3,495.

The higher-end machines include movement-tracking cameras that provide insights on running form. The Tread+ Vision also adds Sled Mode, which lets users train with up to 300 pounds of resistance for strength work as hybrid races like Hyrox gain popularity.

An AI-powered running coach

The wider price range raises a question: how does Peloton keep buyers engaged? That is where Peloton IQ comes in.

The company launched the service last year as an AI-powered system for personalized recommendations and coaching. It is now expanding the platform with features aimed specifically at runners. The new Run Analysis feature uses live video to score running efficiency and deliver personalized pace, form and heart-rate guidance — feedback similar to what an in-person coach would provide.

The strategy moves Peloton further away from being simply a screen attached to exercise equipment. The company now positions its hardware, content and data as one connected training system.

"The Peloton advantage has always been the sum of its parts," said Chief Product Officer Nick Caldwell in the release. "It's about the instructors and content you love, the software that simplifies wellness and equipment that fits seamlessly into your life and transforms your routine."

That positioning matters as Peloton courts experienced, affluent athletes who may already use products from Garmin, Whoop and other fitness platforms. Peloton already integrates with Apple Health, Fitbit and Garmin Connect. It is now adding Whoop, letting members connect accounts so Peloton workouts feed personalized insights in the Whoop app.

The company is leaning into the broader running boom. It offers more than 17,000 Tread-specific classes and is adding race-training programs designed to take members through full preparation for events like the New York City Marathon.

Wall Street stays cautious

For investors, the key question is not whether the new products beat the old ones. It is whether they can change Peloton's growth trajectory.

Truist analyst Youssef Squali told CNBC in a statement that the firm expects "revenue to remain pretty muted given continuous headwinds to subscriber growth." He said Truist anticipates next calendar year will be better for Peloton as its hardware and software improve and the company refinances its debt. Squali has a "buy" rating on the stock and a $9 price target, against a Monday closing price of $4.95 a share.

The equipment launch adds to a range of broader efforts. Peloton recently expanded content distribution through a Spotify partnership that puts more than 1,400 strength and wellness classes in front of Spotify Premium subscribers. It is also building a commercial fitness business, selling more durable equipment to hotels, apartment buildings, gyms and other high-use environments.

After years of cost cutting and financial stabilization, Peloton must now convince investors it can grow again. The holiday season will be the first test.