"Last fall, new Peloton CEO Peter Stern made a bet. The company announced a complete refresh of its entire hardware lineup, complete with swivel screens and AI-powered features. Today, the initial results of Stern's bet are in. In its Q2 2026 earnings call, Stern noted that the hardware refresh hasn't landed with existing Peloton users, resulting in weaker-than-expected holiday sales during what's usually Peloton's strongest quarter. As a result, Peloton stocks fell roughly 20 percent this morning."
"Last week, the company announced yet another round of layoffs, cutting 11 percent of its staff from its engineering and enterprise efforts. The Cross Training series launched in October and included a new Bike, Bike Plus, Tread, Tread Plus, and Row Plus that added swivel screens, cameras for AI-powered strength training feedback, fans, and cushier seats. The new Peloton IQ features also included real-time form correction, analysis, and AI-generated workout routines."
Peloton implemented a full hardware refresh adding swivel screens, cameras, fans, and AI-powered features such as real-time form correction and AI-generated workout routines. The refreshed lineup did not resonate with existing subscribers, producing weaker-than-expected holiday quarter sales and a roughly 20 percent drop in stock value. The company announced another round of layoffs, cutting 11 percent of engineering and enterprise staff, and confirmed that chief financial officer Liz Coddington will leave at the end of March. The combination of higher-priced new hardware and lukewarm adoption contributed to the underperformance during Peloton's normally strong quarter.
Read at The Verge
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