Peloton is taking a major step toward expanding its presence in the commercial fitness market by creating a new Unified Commercial Business Unit (CBU) that combines the strengths of Precor (which Peloton has owned since 2021) with Peloton’s own technology, content, and community.
A Unified Commercial Business Unit (CBU) is essentially a single, integrated division within a company that manages all commercial (B2B) operations under one umbrella. The move was announced in the FY 2025 Q4 earnings letter and is a tactic under Peloton’s “Business Excellence” strategy pillar – one of 4 key areas Peloton is focusing on in their strategic vision.
According to the earnings letter:
Creating a unified commercial business unit (CBU). Our new CBU will meet the exacting demands of gym operators by combining the best of Precor, which delivered solid revenue growth in FY25 and serves more than 60 countries and 80,000 facilities thanks to its industry-leading equipment and support, with Peloton’s software, human coaching, and community.
As part of the integration, Peloton is making leadership adjustments at Precor. CEO Peter Stern shared during the earnings call that Chief Commercial Officer Dion Camp Sanders will oversee the new CBU, with Ian Reeves appointed as general manager of Precor. Dustin Grosz, President of Precor, will retire after helping guide the business back to growth. Stern stated:
“Precor is a strong asset to Peloton, as it has a presence in more than 60 countries and 80,000 locations. We see a tremendous opportunity to expand our commercial presence and serve a broader range of gym operators by bringing the best of Precor and Peloton together.”
Grosz joined Precor in 2023 and played a pivotal role in stabilizing and rebuilding the company after Precor was acquired by Peloton in 2021.
Stern emphasized the potential of this combined approach, stating during the earnings call:
“The commercial business unit that we launched has already turned back to growth. That is the consequence of the amazing work of the Precor team in rebuilding relationships with gyms around the world. Precor builds world-class heavy-duty equipment for the commercial environment, with a service model that’s ideal for high-use environments. Peloton brings our beautiful high-quality equipment, software, and human coaching. When you put those things together, you have a foundation no one can match.”
With Precor already in 80,000 facilities across 60 countries and Peloton in 20,000 locations, the combined network could potentially touch nearly 100,000 facilities worldwide. Stern noted that the company is moving toward one combined sales force representing two complementary brands; a strategy Peloton believes positions them to dominate the commercial fitness and wellness space.
The 2021 Precor acquisition provided Peloton with U.S.-based manufacturing; however, in 2022 Peloton announced that they would be outsourcing all manufacturing to third parties. Peloton explored a potential sale of Precor, but ultimately decided not to pursue a sale.
The new unified business unit marks the most significant step yet in fully integrating the brand into Peloton’s growth strategy.
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