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Peloton’s new CEO aims to revive the connected fitness brand’s fortunes through strategic investments and a broadened workout offering.Brooklyn Today
After Peloton’s market value plummeted from a pandemic-fueled peak of $50 billion to around $2 billion, the company’s new CEO Peter Stern is working to redefine the brand and expand its workout offerings beyond just cardio. Stern, who previously worked at companies like Time Warner, Apple, and Ford, is focused on improving efficiency, investing in Peloton’s core products and content, and broadening the company’s appeal beyond its at-home fitness roots.
Why it matters
Peloton was one of the biggest pandemic success stories, but its rapid growth and valuation surge have given way to stalled subscriptions, falling sales, and layoffs. Stern’s ability to engineer a turnaround will be closely watched as a test case for whether the connected fitness company can regain its momentum and relevance.
The details
Stern, 54, joined Peloton in early 2025 as the company’s third CEO in three years. He has worked in subscription businesses throughout his career and was a Peloton user before taking the top job. Under Stern’s leadership, Peloton has expanded beyond just cardio workouts, adding more strength training, yoga, and other class types. The company has also announced AI-powered workout recommendations and plans to sell Peloton-branded equipment for gyms, looking beyond the at-home fitness market. Stern says Peloton’s current valuation is “too low” and that the company is on an improving financial trajectory, even as it has had to make layoffs to become more efficient.
Stern joined Peloton as CEO in early 2025.In 2023, Peloton’s revenue shrank 23-24%.In 2025, Peloton’s revenue decline narrowed to -8%.Peloton recently lowered its sales forecast, leading to a drop in its share price.
The players
Peter Stern
Peloton’s CEO since early 2025, who previously worked at companies like Time Warner, Apple, and Ford.
Peloton
The connected fitness company that saw a pandemic-fueled surge in popularity and valuation, but has since struggled with stalled subscriptions and falling sales.
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What they’re saying
“This is actually my dream job.”
— Peter Stern, CEO, Peloton
“Turnarounds take time, right?”
— Peter Stern, CEO, Peloton
What’s next
Stern and Peloton will continue working to revive the brand’s growth and profitability, with a focus on expanding its workout offerings, improving efficiency, and broadening its appeal beyond the at-home fitness market.
The takeaway
Peloton’s new CEO faces a challenging turnaround, but believes he can steer the connected fitness company back to health by redefining its brand, diversifying its workout content, and improving its financial performance over time.
