Peloton pivots to wellness alongside another layoff

Peloton exceeded capitalist expectations this quarter, but CEO Peter Stern says expenses are inactive excessively high.

Peloton has pivoted galore times implicit the past fewer years successful its quest to instrumentality to profitability. The latest, arsenic announced successful its Q4 2025 net call, is leaning into wellness and wellness alternatively of “just” cardio fitness.

“With each passing year, we are coming to recognize amended the value of strength, accent management, sleep, and nutrition to surviving our champion lives,” CEO Peter Stern said during the call. “This creates the opportunity, nary much than that, the mandate, for Peloton to germinate from being a cardio fittingness spouse to becoming the world’s astir trusted wellness spouse crossed the afloat array of behaviors that maximize wellness demand.”

He went connected the explicate that the institution volition absorption connected “health span”, oregon the play of beingness a idiosyncratic lives successful bully health. “Advances successful aesculapian subject contributed to the prolonging of beingness present successful the US by a singular 40 years from 1900 to 2020,” Stern says. “However, arsenic beingness span has increased, wellness span, the prime arsenic opposed to quantity, of those years has failed to support up. People are surviving longer but they’re besides surviving sicker successful the U.S.”

Health span isn’t a caller concept. Whoop besides conscionable released a Health Span diagnostic with its latest tracker earlier this summer. Peloton’s instrumentality connected improving wellness volition reportedly impact investing much successful its personalized grooming programs, the standalone Strength Plus app, arsenic good arsenic meditation and slumber features. Stern besides said that Peloton would trial and iterate connected bringing nutritional contented to its platform. In a shareholder letter, Stern highlighted utilizing AI and integrating with wellness tracking devices arsenic a means to supply “increasingly idiosyncratic insights, plans, and recommendations” to its members.

On the concern side, Peloton exceeded capitalist expectations successful each metrics. It posted $607 cardinal successful revenue, astir $21 cardinal supra the apical extremity of its expected guidance range. Connected paid fittingness subscriptions and paid app subscriptions besides exceeded targets, posting 2.8 cardinal and 552,000, respectively. Peloton shares roseate astir 11 percent connected the news, but Stern noted that the company’s operating expenses were inactive excessively high.

As a result, Stern says the institution volition acquisition different outgo restructuring program that includes laying disconnected astir six percent of its workforce. “This is not a determination we came to lightly, arsenic it impacts galore talented squad members, but we judge it is indispensable for the semipermanent wellness of our business,” Stern writes successful the shareholder letter. This marks the company’s sixth circular of layoffs, coming a small implicit a twelvemonth aft the institution laid disconnected 15 percent of its workforce and erstwhile CEO Barry McCarthy stepped down.

Peloton besides plans to set pricing. That includes a caller assembly interest for its hardware, which was antecedently escaped with purchase. (There volition inactive beryllium a escaped enactment for self-assembly.) The institution besides plans to present a caller Special Pricing programme to marque its products much affordable for teachers, subject personnel, archetypal responders, and aesculapian professionals.