Peloton is revamping its treadmills with new features in the next phase of its turnaround

Peloton is betting that revamped treadmills, AI and new distribution channels can bring it back to sustained growth.

The connected fitness company on Tuesday unveiled three new treadmills and new features for its Peloton IQ artificial intelligence platform with tools for runners, walkers and hikers. Peloton aims to widen its customer base, from people looking for a more affordable, space-saving treadmill to more experienced athletes looking for 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,” said CEO Peter Stern in a press release.

But the stakes remain higher than simply selling new equipment. Shares have dropped 43% since Stern stepped into the role in January 2025.

Peloton has spent the past several years cutting costs, restructuring its operations and repairing its balance sheet after the pandemic-era boom in connected fitness gave way to a sharp slowdown in demand. The company has returned to profitability and improved its cash generation, but revenue growth is a challenge as subscriptions trend lower.

Now Stern is putting more emphasis on widening the company’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.

The treadmill relaunch, Peloton said, is also addressing the company’s long-standing challenge getting consumers to buy high-cost equipment that takes up a lot of space.

The Tread Flex will start at $2,195, making it Peloton’s lowest-cost treadmill of the new hardware and its first folding model. The new treadmill can contract by nearly half its size, potentially broadening the product’s appeal among consumers with less space or lower equipment budgets

At the other end of its lineup, Peloton is keeping the $6,695 Tread+ Vision the same price. It is also increasing the price of the middle model, the Tread Vision, by $200, to $3,495.

The higher-end products include movement-tracking cameras that provide insights on a user’s running form. The Tread+ Vision also includes Sled Mode, meant to allow users to add up to 300 pounds of resistance for strength training as hybrid races like Hyrox become more popular.

The wider range of prices brings questions about how Peloton will keep buyers engaged.

That is where Peloton IQ comes in.

Peloton launched the service last year as an AI-powered software system for personalized recommendations and coaching. The company is now expanding it with features specifically aimed at runners.

The new Run Analysis feature uses live video to score running efficiency and provide personalized pace, form and heart-rate guidance, similar to feedback from an in-person coach.

The strategy moves Peloton further away from simply being a screen attached to a piece of exercise equipment. The company is positioning its hardware, content and data as a 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 could be particularly important as Peloton tries to reach more experienced and 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, allowing members to connect their accounts and have Peloton workouts contribute to personalized insights in the Whoop app.

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

For investors, however, the key question isn’t whether the new products offer a better exercise experience than 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 the firm anticipates next calendar year will be better for Peloton as its hardware and software improves and it refinances its debt.

Squali has a “buy” rating on the stock and a $9 price target, compared with its Monday closing price of $4.95 a share.

The equipment changes add to a range of efforts Peloton is making to boost its business.

The company also recently expanded its content distribution through a partnership with Spotify, putting more than 1,400 Peloton strength and wellness classes in front of Spotify Premium subscribers. It is also building a commercial fitness business, selling more durable versions of its equipment to hotels, apartment buildings, gyms and other high-use environments.

After years of focusing on cost cutting and financial stability, Peloton is now trying to convince investors that it can grow the business again.

The holiday season will be an early test of that strategy.