Peloton

What Peloton does

Peloton Interactive, Inc. is a publicly traded connected fitness platform (NASDAQ: PTON) founded in 2012 and headquartered in New York, operating across the United States, United Kingdom, Canada, Germany, Australia, and Austria. The company sells connected fitness hardware — bikes, treadmills, and rowers (Cross Training Bike/Bike+, Tread/Tread+, Row+) — bundled with a monthly All-Access Membership ($50/month, raised from $44/month in Q2 FY2026) that unlocks access to a library of more than 10,000 live and on-demand classes spanning 15+ disciplines. The platform is differentiated by celebrity-grade instructors, an AI layer branded as Peloton IQ that delivers personalized training plans, computer-vision-based real-time form feedback (via movement-tracking cameras on premium equipment), predictive performance estimates, and hands-free voice control.

Peloton's revenue model blends hardware sales (one-time purchase, $1,145 refurbished to $6,695 Tread+) with recurring subscription revenue and, more recently, content licensing and commercial equipment sales. Q3 FY2026 revenue of $630.9M included approximately $202.9M from Connected Fitness subscriptions, $428M in total subscription revenue, and material hardware contribution; full-year FY2026 guidance was raised to $2.42-$2.44B. Go-to-market is primarily direct-to-consumer via onepeloton.com and retail showrooms, with third-party retail (Amazon) and commercial channels (Precor Commercial Series launching late 2026) expanding reach. Strategic distribution pivots include a global content licensing deal with Spotify (April 2026) exposing 1,400+ classes to Spotify Premium's 600M+ user base, hotel partnerships with Hyatt/Hilton/IHG/Peninsula, and tuck-in acquisitions (Breathwrk in October 2025, Skōp in June 2026) to add modalities such as Pilates.

Financially, Peloton returned to profitability in Q3 FY2026 with $26.4M net income (ending a two-year losing streak), 51.9% gross margin, 20% adjusted EBITDA margin, $150.5M quarterly free cash flow (up 59% YoY), and a 70% YoY reduction in net debt to $173M. CEO Peter Stern (appointed January 1, 2025) is executing a turnaround that emphasizes subscription economics, content licensing, commercial expansion, and a pipeline of new leadership including incoming CFO Siddharth Thacker (effective June 22, 2026) and Chief Content Officer Sarah Robb O'Hagan. Despite improved unit economics, Connected Fitness subscriptions declined 7% YoY and headcount has been reduced through multiple restructurings, signaling an ongoing structural reset rather than a steady-state growth profile.

Name

Peloton

Legal name

Peloton Interactive, Inc.

Website

https://onepeloton.com

Company type

Public

Founded year

2012

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

Peloton Interactive (NASDAQ: PTON) is a connected fitness platform selling bikes, treadmills, and rowers bundled with a subscription content library of 10,000+ classes, serving 5.8 million subscribers across six countries with AI-powered coaching, commercial equipment, and content licensing.

Ownership category

akta.pro rank

Product category

Connected Fitness Equipment

NAICS

Sporting and Athletic Goods Manufacturing (33992), Fitness and Recreational Sports Centers (71394)

SIC

Sporting & Athletic Goods, Nec (3949)

akta.pro primary industry

Home Gym Systems & Smart Fitness Equipment Retail (Connected Mirrors, Smart Bikes, All-in-One Gyms) (CRAMADAG)

akta.pro secondary industries

Endurance & Running/Cycling Training (HSADAAAG), General Personal Training (In-Person & Virtual) (HSADAAAA), Functional Fitness / Cross-Training Groups (HSADABAH)

Keywords

• Connected fitness equipment
• Interactive fitness platform
• Home exercise equipment
• Subscription fitness classes
• AI-powered training

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices5 records

Markets served

GTM type

B2B and B2C

Offering type

Hardware or Manufacturing

Cost components

Personnel, Marketing or Sales, Supply Chain, Operations, Technology or R&D, Infrastructure

Revenue model

1. Connected Fitness Subscription: Monthly subscription providing access to live and on-demand fitness classes on Peloton hardware. Connected Fitness subscription revenue was $202.9 million in Q3 fiscal 2026, representing approximately 32% of total revenue.
2. App Subscription: Standalone app subscription for users without Peloton hardware, providing access to Peloton classes on phones, tablets, and TVs. Part of overall subscription revenue which reached $428 million total in Q3 fiscal 2026.
3. Hardware Sales: Sale of connected fitness equipment including bikes, treadmills, and rowers. Products range from $1,145 (refurbished original Bike) to $6,695 (Cross Training Tread+). Q3 fiscal 2026 revenue of $630.9 million included hardware sales growth.
4. Content Licensing: Multi-year licensing agreement with Spotify for 1,400+ workout classes, creating a high-margin revenue stream potentially valued in the tens of millions of dollars. Represents Peloton's pivot toward becoming a content-led fitness provider.
5. Commercial Equipment Sales: Sale of Commercial Series bikes and treadmills to gym facilities. Commercial Business Unit reported 14% year-over-year revenue growth in Q3 fiscal 2026, with plans to expand to over 80,000 facilities globally.
6. Personal Training Add-on: $99.99/month personal training add-on in beta testing, representing a potential new subscription tier for premium personalized coaching services.

Pricing tiers

Go-to-market motion3 records

Distribution channels7 records

Marketing channels8 records

Core offering

Peloton designs, manufactures, and sells connected fitness hardware (Cross Training Series bikes, treadmills, and rowers) bundled with a subscription-based content platform offering over 10,000 live and on-demand fitness classes across 15+ disciplines. The platform is enhanced by Peloton IQ, an AI-powered coaching system providing personalized training plans, real-time form feedback via movement-tracking cameras, and performance estimates.

Product overview

Peloton is a connected fitness platform offering hardware products (interactive bikes, treadmills, and rowers) combined with a subscription-based content platform. The product lineup centers on the Cross Training Series: Bike, Bike+, Tread, Tread+, and Row+, all powered by Peloton IQ AI for personalized training. The ecosystem includes the Peloton App for mobile and TV access, Peloton Guide for AI-powered strength training, and the All-Access Membership ($44-$50/month) for content. In 2026, Peloton expanded into commercial gym equipment (Commercial Series with Precor), acquired connected Pilates innovator Skōp, and partnered with Spotify for content distribution. The platform offers 10,000+ classes across 15+ disciplines including cycling, strength, yoga, running, boxing, rowing, meditation, and Pilates.

Differentiator

Problem solved

Functional benefit

Products and services

• Peloton Cross Training Bike+ Premium interactive cycling bike with 23.8-inch Full HD rotating touchscreen, auto-resistance knob, Sonos-tuned speakers, movement-tracking camera for AI-powered form feedback, and hands-free voice control. Priced at $2,695.
• Peloton Cross Training Bike Interactive cycling bike with 21.5-inch Full HD tilting touchscreen, manual resistance control, and 2-speaker audio. More affordable entry point at $1,695 with access to same class library.
• Peloton Cross Training Tread+ Premium treadmill with 23.8-inch Full HD rotating screen, cushioned slat belt (67-inch running space), auto-incline up to 15%, Sonos-tuned speakers, movement-tracking camera, and AI-powered Peloton IQ. Priced at $6,695.
• Peloton Cross Training Tread At-home treadmill with 21.5-inch Full HD rotating screen, 59-inch running belt, auto-incline up to 12.5%, and front-facing speakers. Priced at $3,295.
• Peloton Row+ AI-powered rowing machine with integrated movement-tracking camera for real-time form corrections during strength training workouts. Features 23.8-inch Full HD rotating screen and Peloton IQ capabilities.
• Peloton Refurbished Original Bike+ Refurbished version of the original Bike+ model available at $1,395 with rental option ($0/month rental membership). Includes Peloton All-Access Membership for $44-$50/month.
• Peloton Guide AI-powered home fitness device with movement-tracking camera that provides real-time form feedback and rep counting for strength training workouts.
• Peloton App Standalone mobile, tablet, and TV application providing access to 10,000+ classes across 15+ disciplines. Available on iOS, Android, Apple TV, Roku, and Amazon Fire, with subscription access without hardware purchase.
• Peloton All-Access Membership Monthly subscription ($50/month) required for full access to all Peloton content and features on hardware. Includes live and on-demand classes, personalized plans, performance estimates, workout insights, leaderboard, and access to 15+ workout types.
• Commercial Series Purpose-built connected fitness equipment (bikes and treadmills) for commercial gym environments. Combines Peloton's software platform with Precor's industrial-grade hardware engineering. Targets 80,000+ facilities across 60+ countries where Precor has existing footprint.
• Peloton Apparel Separate apparel brand and e-commerce site offering athletic wear and Peloton-branded clothing including shirts, shorts, hoodies, and accessories.
• Skōp Connected Pilates technology company acquired by Peloton in June 2026. Early innovator in connected Pilates hardware and software, backed by 48% YoY growth in member Pilates engagement.

Quantifiable outcome

• 51.9% gross margin in Q3 fiscal 2026, up from prior quarters
• +4 more outcomes

Named customers6 records

Segments4 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration17 records

AI capability10 records

Feature5 records

Partnerships

Eleven partnerships are on record, tiered core, flagship and minor.

• SkōpcoreStrategic or Co-development Partner · 4 June 2026Acquisition of Skōp, an early innovator in connected Pilates technology. Deal backed by strong user data showing 48% year-over-year increase in member engagement with Pilates in Q3. Strategic expansion of strength ecosystem and at-home fitness offerings into fastest-growing fitness modality.
• SpotifyflagshipStrategic or Co-development Partner · 27 April 2026Global partnership integrating 1,400+ Peloton fitness classes into Spotify's new Fitness hub. Premium subscribers gain access to ad-free on-demand workouts spanning strength, Pilates, yoga, meditation, and more. Classes available in English, Spanish, and German without requiring Peloton hardware. Represents Peloton's strategic shift toward content licensing as a revenue diversification strategy, gaining access to Spotify's 600+ million user base.
• Johnson Fitness & WellnessminorChannel Partner/ Reseller/ Distributor · 1 October 2025Distribution partnership announced October 2025 for connected fitness equipment distribution and wellness solutions.
• NikeminorStrategic or Co-development Partner · 1 February 2025Partnership announced in February 2025 as part of Peloton's expansion beyond home fitness into broader wellness ecosystem.
• PrecorcoreStrategic or Co-development PartnerPartnership leveraging Precor's industrial-grade hardware engineering and existing commercial footprint across 60+ countries serving 80,000+ facilities. Peloton's software platform combined with Precor's manufacturing and distribution capabilities for commercial gym equipment (Commercial Series).
• Hyatt HotelscoreStrategic or Co-development PartnerPartnership allowing World of Hyatt members to earn points by logging Peloton workouts, integrating fitness engagement with loyalty program rewards. Represents expansion of Peloton's presence in hospitality sector.
• Hilton HotelscoreStrategic or Co-development PartnerIn-room Peloton equipment partnership providing guests access to premium fitness experiences. Collaboration includes Calm for meditation and Hyperice for recovery tools, creating comprehensive wellness offerings.
• IHG Hotels & ResortsminorStrategic or Co-development PartnerStrategic wellness partnership providing Peloton fitness content and equipment access to hotel guests, supporting IHG's focus on health-conscious traveler amenities.
• Peninsula HotelsminorStrategic or Co-development PartnerLuxury hotel partnership integrating Peloton fitness experiences into premium guest services.
• AffirmcoreChannel Partner/ Reseller/ DistributorFinancing partner providing 0% APR installment payment options for Peloton equipment purchases over 12 months. Enables higher ticket sales by reducing upfront cost barriers.
• TruemedcoreChannel Partner/ Reseller/ DistributorHSA/FSA payment integration partner enabling customers to use Health Savings Account and Flexible Spending Account funds for qualifying Peloton equipment purchases.

Scale indicators13 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• iFIT (parent of NordicTrack, ProForm, Freemotion): iFIT operates a directly comparable connected fitness platform combining interactive fitness equipment (NordicTrack bikes/treadmills, ProForm) with a subscription-based streaming content library. Same hardware-plus-subscription model, same target consumer, same instructor-led content approach.
• Tonal: Tonal is a direct competitor in connected strength training with AI-powered hardware and a subscription content model. Targets the same premium at-home fitness consumer with hardware-software integration, though specializing in strength vs. Peloton's broader modality mix.
• Hydrow: Hydrow is a direct connected fitness competitor specializing in connected rowing machines with live and on-demand content. Competes for the same at-home fitness consumer with a hardware-plus-subscription model, similar to Peloton's Row+.
• Echelon Fitness: Echelon offers connected fitness bikes, rowers, and treadmills with a subscription-based content platform at lower price points than Peloton. Competes directly for the price-sensitive connected fitness consumer with similar hardware-software integration.
• Bowflex: Bowflex (now part of Nautilus Inc.) sells connected home fitness equipment (bikes, treadmills, strength) with subscription JRNY content. Direct competitor in the connected home fitness equipment category serving a similar mass-market consumer base.

Broad incumbents

• Apple Fitness+: Apple Fitness+ is a subscription-only fitness content service integrated with Apple Watch, requiring no proprietary hardware. Competes for Peloton's subscription revenue without the hardware cost, leveraging Apple's massive ecosystem to undercut on price ($9.99/mo).
• Lululemon (MIRROR): Lululemon's MIRROR (now Lululemon Studio) is a connected fitness mirror that streams live and on-demand classes with a subscription. Direct competitor in the connected home fitness display category, with Lululemon's premium brand and apparel ecosystem.

Emerging players

• Zwift: Zwift is an interactive indoor cycling and running platform that pairs with third-party equipment. Competes with Peloton's cycling content offering and targets enthusiast cyclists and runners with gamified virtual training environments.
• Tempo Fitness: Tempo offers AI-powered connected strength training with 3D motion tracking and personalized coaching. Competes in the connected strength training category overlapping with Peloton's Cross Training Series strength content.
• Aviron: Aviron is a connected rowing machine competitor with gamified content and live classes. Competes directly with Peloton's Row+ for at-home connected rowing consumers with a focus on interactive and competitive content.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/onepeloton
• YouTubeyoutube.com/c/onepeloton
• Facebookfacebook.com/OnePeloton
• Instagraminstagram.com/onepeloton
• LinkedInlinkedin.com/company/peloton-interactive-

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Subsidiaries2 records

Funding overview

Funding rounds12 records

Investors20 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A8 records

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Peloton