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.