Peloton Interactive Inc. shares tumbled Wednesday after the fitness company unveiled a broad product revamp coupled with significant price increases for both hardware and membership subscriptions. The decline marked the first major market test of new leadership’s effort to reverse years of declining sales and stalled innovation.
The overhaul, announced Wednesday, introduces new versions of Peloton’s flagship Bike and Bike+, Tread and Tread+, and a new Row+ model that replaces the prior Row. Each product features a Swivel Screen, allowing users to pivot the display and engage in off-device workouts such as yoga or Pilates while still accessing Peloton’s classes. The lineup is powered by a new artificial intelligence platform, Peloton IQ, which delivers personalized guidance, insights, and coaching plans tailored to individual users.
Accompanying the hardware refresh, Peloton implemented price hikes averaging roughly 11% for devices and 19% for subscription fees. The hardware price adjustments are notable: the standard Bike rose $250 to $1,695, the Bike+ increased $200 to $2,695, the Tread jumped $300 to $3,295, Tread+ gained $700 to $6,695, and the Row+ climbed $200 to $3,495. On the subscription side, the All-Access membership now costs $49.99 per month (up from $44), the App+ Membership rises to $28.99 (from $24), and the App One Membership increases to $15.99 (from $12.99).
“We know that every dollar is precious and people are considering how to spend their money these days,” Chief Executive Officer Peter Stern, a former Apple and Ford executive who joined Peloton in January, said in an interview with Bloomberg Television. “We are very careful about what we do here, but we are also looking at the value that we deliver.”
Peloton’s stock dropped as much as 10% to $8.10 on Wednesday in New York, representing the largest intraday decline since June 17. The movement underscores investor caution about pricing sensitivity and the challenge of reviving consumer enthusiasm after multiple years of declining sales, several rounds of layoffs, and gaps in new product releases. In August, Peloton cut approximately 6% of its workforce and projected a 2% revenue decline for fiscal year 2026.
The revamped product line features faster chips, improved audio, upgraded WiFi and Bluetooth connectivity, and enhanced personalization through AI-powered tracking. The higher-end models—Bike+, Tread+, and Row+—include integrated cameras for movement tracking, immersive Sonos speakers, a built-in fan, and voice control activated with “OK Peloton.” The Bike+ also features a convenient tray for holding a phone or tablet.
Addressing user feedback, Peloton upgraded the seats on both new Bike models for greater comfort and introduced a $65 Comfort Saddle with additional padding and width, compatible with new and older machines.
In a strategic expansion beyond hardware, Peloton acquired Breathwrk, a mobile app focused on breathing exercises to improve stress management, sleep, and mood. The company also plans deeper integration with health data from Garmin and Apple devices and a partnership with Halle Berry’s Respin Health to provide content for perimenopause wellness.
Stern’s ambitious vision seeks to position Peloton as a tech-enabled, wellness-focused lifestyle brand, leveraging advanced hardware, AI personalization, and holistic health offerings. Whether the market responds favorably to the price increases and enhanced product ecosystem will be a key test for the company’s turnaround strategy.
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