Peloton introduced three new treadmills and expanded its AI coaching platform this week, a strategic push to attract a broader customer base and reverse a 43% drop in its share price.

Shares have fallen sharply since CEO Peter Stern took the helm in January 2025. After years of cutting costs and repairing its finances following a pandemic fitness boom, the company has returned to profitability. Revenue growth remains difficult, however, as subscription numbers continue to trend downward.

The new hardware lineup tackles the long-standing hurdle of selling expensive, bulky equipment. The Tread Flex starts at $2,195. It is the company's most affordable model and its first folding design, shrinking to nearly half its original size. The mid-range Tread Vision now costs $3,495 after a $200 price increase. At the top, the Tread+ Vision stays at $6,695 and features movement-tracking cameras to analyze running form. It also includes a Sled Mode that lets users attach up to 300 pounds of resistance for strength training.

Alongside the hardware, Peloton is rolling out new tools for its Peloton IQ platform. The system launched last year to offer personalized recommendations, and the latest update targets runners directly. A new Run Analysis feature uses live video to score running efficiency and deliver real-time coaching on pace, form, and heart rate.

The company is shifting its focus from standalone screens to a connected training system. Chief Product Officer Nick Caldwell said the strategy relies on combining instructors, software, and equipment. Peloton is also expanding its reach by adding Whoop to its existing integrations with Apple Health, Fitbit, and Garmin Connect. A recent deal with Spotify will push more than 1,400 strength and wellness classes to Premium subscribers. The brand is simultaneously building a commercial fitness division that sells heavier-duty machines to hotels and apartment complexes.

The holiday season will serve as an early test for these changes. "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. Market watchers remain cautious. Truist analyst Youssef Squali expects revenue to stay flat in the near term due to subscriber headwinds. He maintains a buy rating on the stock with a $9 price target, compared to Monday's closing price of $4.95, noting that improved software and debt refinancing should help next calendar year.