Is Peloton on track for a comeback?

Remember Peloton, the bike that turned bedrooms into spin studios and staved off thousands of pandemic pounds long before GLP-1s? While the fitness company has been sweating through a rough few years, it’s trying to reenter the race—this time on foot.

Today Peloton rolled out three new treadmills, including its first foldable version, the Tread Flex, for $2,195. That’s about $1,000 cheaper than previous models, and is aimed directly at fitness buffs who are tight on both budget and square footage. Meanwhile, the equipment’s video screen has also gotten an upgrade. Peloton IQ, an AI-powered software platform launched last year, now comes with a slew of new tools for runners, including real-time feedback on form, pace, and technique. Consider it a robot running coach, free of the judgmental looks when your last half-mile sprint looks more like a jog.

As for bikes, the company’s old standby, CEO Peter Stern told CNN that spin classes have “clearly lost momentum,” adding, “The fitness landscape is evolving toward more sustainable and habitual routines rather than overly choreographed or intense workouts.”

So far, Peloton’s product pivot has been met with applause, with shares gaining 1.52% today. Will the runner’s high last?

Peloton’s uphill climb

Peloton’s Olympic rise and epic face-plant is one of the pandemic’s most painful cautionary tales. Launched in 2012, the company quickly built a cult-like following with its charismatic fitness instructors. By May 2020, sales had jumped 66% and subscriptions were up 94%.

With that explosive growth came growing pains: Delivery times stretched for months, and Peloton’s once-loyal fanbase started airing frustrations. As pandemic restrictions eased and people trickled back to gyms, Peloton’s momentum reversed hard: Revenue has fallen each year since peaking at $4.02 billion in 2021, while the stock has cratered 97% from its all-time high of $167.42 in January of that year.

Stern took over as CEO in January 2025, and so far, he’s picked a promising direction for a redux: Marathons are booming in popularity, with a sizable uptick in crowds crossing the finish line at major races. North America’s home treadmill market is predicted to grow by 40% into a $5.6 billion category by 2030 (stationary bikes, by contrast, are forecast to grow at a snail’s pace).

On the other hand, running clubs are also on the rise. On fitness app Strava, club activity was up 1.5x in 2025, as more people turn to IRL meetups for social connection, eschewing their home workout equipment. That may explain why Peloton is branching beyond home gyms and bulking up its commercial arm, offering more heavy-duty equipment to gyms, hotels, and apartment buildings.

Peloton’s new treadmills go up for sale starting October 1. With cooling temperatures coming soon, the months and holidays ahead will be a true test run of whether this company’s new business prop has legs.—JD