Peloton CEO sounds the alarm on growing problems

Most people would agree that the Covid pandemic era was one of the worst times in modern history.

Billions of people worldwide were forced to stay home, temporarily halting their lives and completely restructuring their daily routines. This deprived them of quality time with loved ones and prevented them from creating lifelong memories.

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However, for others, the pandemic helped them get in the best shape of their lives. With so much time on their hands, many people began focusing on their health, using fitness to escape reality for a few hours rather than lounging around and watching television for the rest of the day.

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When gyms were forced to close because of the pandemic, fitness equipment and media company Peloton became fitness enthusiasts' saving grace and helped others begin their wellness journeys.

Peloton provides live and on-demand workout classes for any fitness level and workout style. These workouts can be done using body weight or workout equipment, including spin bikes, treadmills, and rowers.

Peloton's  (PTON)  business model boomed during lockdowns, reaching its highest sales, subscriptions, and shares peak ever.

However, once the confinement period ended and gyms began to reopen, the need and demand for at-home workout equipment declined. This has caused Peloton's business to struggle since 2021.

Not only did consumers no longer depend on their equipment or fitness videos to get a good workout, but the pandemic's repercussions also led to economic uncertainty and a slowdown in consumer spending that continues to have a global impact.

Consumers have become more cautious about their financial habits, which Peloton claims has caused a decline in subscriptions and equipment sales.

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Peloton's overall membership declined 8% year over year during its third quarter of fiscal 2025.

Paid Connect Fitness subscriptions required for Peloton equipment were down 6%, and paid app subscriptions that grant access to workout videos decreased 15%.

Equipment sales declined 27% yearly, with subscription revenue down 4%, marking the third consecutive year of year-over-year sales declines.

The results caused its shares to drop by over 14% during morning trading on May 8.

Since becoming Peloton's CEO in January 2025, Peter Stern revealed he has been developing new strategies to get the business back on track and is very optimistic about the company's future.