Peloton CEO Peter Stern is the subject of a recently published profile in The New York Times, offering insight into his first year leading the company and his strategy for the future.
Stern, who stepped into the Peloton CEO role in early 2025, actively pursued the opportunity, reaching out to recruiters himself before ultimately becoming Peloton’s third chief executive. Despite the challenges surrounding the role, Stern described the position enthusiastically, saying, “This is actually my dream job.”
The feature highlights Peloton’s dramatic shift since their pandemic-era highs. Once valued at nearly $50 billion, the company’s market cap has since dropped significantly to around $2 billion. Growth in subscriptions has slowed, and hardware sales have declined compared to peak demand during lockdowns.
Stern acknowledged the road has not been smooth. Peloton has undergone layoffs – including a recent reduction affecting about 11% of their workforce – and lowered their sales outlook in their latest earnings report. The company has also faced increased subscriber churn following pricing changes, along with executive turnover.
Still, Stern emphasized that Peloton’s core business remains strong, pointing to member satisfaction and retention as key indicators. He pushed back on the idea that Peloton is no longer relevant, noting that subscriber levels remain close to pandemic highs and have grown compared to pre-2020 levels.
A major part of Stern’s strategy is expanding how Peloton is perceived. While the brand built its reputation on cardio-focused workouts, the company has increasingly leaned into strength training, yoga, and broader fitness offerings.
Stern explained the thinking behind this shift, stating:
“The optimal exercise regimen is not just cardio — it should also include strength.
It’s our responsibility to make sure that we can deliver that complete diet on the exercise front to our members. In our last quarter, we had two million members doing strength workouts. Not only do a very large fraction of our members engage in strength training in addition to cardio, but those who do stay with us 40 percent longer.”
This is part of his push to redefine Peloton as a “connected wellness” company rather than a “connected fitness” company.
Stern also points to the fact that Peloton has also introduced new technology initiatives, including AI-powered workout recommendations, and updated their hardware lineup. In addition, the company is beginning to expand beyond the home by developing Peloton-branded equipment for gyms – a notable shift from their earlier, home-first focus. This includes the recently announced “Peloton Commercial” line of products.
Stern addressed Peloton’s valuation directly, calling both the pandemic-era peak and current valuation unrealistic. While the earlier figure was inflated, he believes the current valuation undervalues the company’s progress. He stated:
“That was an unrealistic valuation for the company at that time. I would argue that the valuation we have now is also unrealistic.
We’re seeing vastly improved trajectory on revenue. We are now consistently delivering profitability. We maintain incredibly high member satisfaction. All of those things mean we’re right where we should be, and the valuation will come.”
He also framed Peloton’s recovery as a gradual process, explaining that turnarounds do not happen overnight. After experiencing revenue declines of over 20% in 2023, the company has made progress toward stabilizing performance, with expectations of approaching “flat” growth in the near term.
In regards to the recent layoffs, Stern described them as part of a broader effort to streamline operations and reinvest in areas that differentiate Peloton – including their products, software, instructors, and community. Stern explained that improving efficiency in non-core areas allows the company to double down on what makes it unique, saying the goal is to allocate resources toward the aspects of the business that drive value for members.
While challenges remain, Stern’s message throughout the interview is one of cautious optimism. He believes Peloton’s brand loyalty, high engagement, and evolving product mix position them well for long-term success.
The full feature in The New York Times provides additional detail on Stern’s background, leadership style, and personal connection to fitness – including his early exposure through his mother, who taught aerobics classes; his sleep schedule; and his favorite type of Peloton workout (Tread bootcamps).
You can read the full profile on Peloton CEO Peter Stern via The New York Times.
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