Episode Overview

Podcast: Bloomberg Talks
Episode: Peloton Interactive CEO Peter Stern Talks New Products' Price Point
Date: October 1, 2025
Host: Bloomberg, joined by Caroline Hyde

This episode delves into Peloton’s major product overhaul and newly launched AI platform, Peloton IQ, under the leadership of CEO Peter Stern. The conversation examines Peloton’s growth strategy, recent price increases, competitive positioning in the wellness market, and Stern’s vision for the company’s future.

Key Discussion Points and Insights

1. Major Product Overhaul & AI Platform Launch

(00:25 - 01:51)

• Peloton has unveiled a "completely new lineup of equipment" alongside its new AI-powered personal trainer platform, Peloton IQ.
• The announcement also marks Peloton’s move into broader wellness, not just hardware upgrades.
• Despite excitement around the release, stock market response was muted.
• Quote:

  "I wouldn't focus on day to day but I would focus on the news that we announced today because it's pretty amazing...Completely new lineup of equipment. Peloton IQ, our AI powered personal trainer. Big moves into total wellness." — Peter Stern (01:10)

2. Serving Existing and New Members

(01:51 - 03:18)

• New features—including Peloton IQ—will be available to all members, not just those upgrading hardware.
• Acquisition of Breathwork enhances Peloton’s approach to mental health (breathing, stress, and anxiety management).
• Partnerships, like the one with the Hospital for Special Surgery, expand offerings for injury prevention and rehab.
• Introduction of cross-training equipment combining cardio and strength, aligned with fitness guidelines.
• Quote:

  "Regardless of when you bought your equipment, the benefits of Peloton IQ...that's just included in your membership." — Peter Stern (02:14)
  "Now we're delivering the benefits of both cardio and strength...all with one piece of equipment that makes it super easy." — Peter Stern (02:53)

3. Impact on Growth & Guidance

(03:18 - 04:24)

• Anticipated growth was already factored into Peloton’s yearly financial guidance.
• Company is poised to return to growth after a slump post-pandemic.
• Deep customer loyalty, especially to instructors, remains a core strength.
• Quote:

  "We are now in such a good place where you see us having reignited our innovation engine. Of course, our customer love has never left us." — Peter Stern (03:56)

4. Longevity and Support for Existing Hardware

(04:24 - 05:07)

• Commitment to supporting old and new Peloton devices—no forced obsolescence for members who don't upgrade hardware.
• Emphasis on durability and value in existing products.
• Quote:

  "We're continuing to support them. We are not in the obsolescence business." — Peter Stern (04:57)

5. Profitable Growth & Value Equation

(05:07 - 06:48)

• Peloton has delivered five straight quarters of significant free cash flow.
• The company is focused on sustainable, profitable growth as well as value for members.
• The latest price increase is the first in over three years, justified by added features and content (12,000 new classes, 40 new programs, weighted vest workouts, and Peloton IQ).
• Quote:

  "We're delivering real profitability...people now feel so confident about [our future]." — Peter Stern (05:17)
  "If people are going to invest in something, they should be investing in their health, in their wellbeing, in their longevity." — Peter Stern (05:59)

6. Navigating a Competitive Fitness/Wellness Market

(06:48 - 08:06)

• Peloton aims to be a "total health" solution spanning cardio, strength, and mental wellness.
• The new Plus line’s cameras can count reps, provide feedback, and suggest weight adjustments.
• Mental wellness is addressed through Breathwork, meditation, and yoga additions.
• Peloton is positioned as a complete solution but open to members using other products or platforms.
• Quote:

  "Now strength is a huge area of focus for us...with our Plus line, we're able to count your reps, give you feedback, suggest when you should be upping your weights." — Peter Stern (07:27)

7. Five-Year Vision for Peloton and Wellness

(08:06 - 08:55)

• Goal: Become the essential partner for a higher quality of life, not just a longer one.
• Peloton aims to impact users’ choices across fitness, mental well-being, nutrition (including supplements), and sleep.
• Quote:

  "We intend to be your essential partner in the journey to feeling better about yourself and living your best life...We can make a difference in every one of those areas and we intend to." — Peter Stern (08:17)

Notable Quotes & Memorable Moments (with Timestamps)

• "Completely new lineup of equipment. Peloton IQ, our AI powered personal trainer. Big moves into total wellness."
  — Peter Stern (01:14)
• "Regardless of when you bought your equipment, the benefits of Peloton IQ...that's just included in your membership."
  — Peter Stern (02:14)
• "We're continuing to support them. We are not in the obsolescence business."
  — Peter Stern (04:57)
• "We've now been able to deliver five consecutive quarters of significant free cash flow...delivering real profitability."
  — Peter Stern (05:12)
• "If people are going to invest in something, they should be investing in their health, in their wellbeing, in their longevity."
  — Peter Stern (05:59)
• "With our Plus line, we're able to count your reps, give you feedback, suggest when you should be upping your weights."
  — Peter Stern (07:27)
• "We intend to be your essential partner in the journey to feeling better about yourself and living your best life...the quality of those years."
  — Peter Stern (08:17)

Important Segments and Timestamps

• (00:25) Peloton’s hardware and AI platform announcement — market reaction
• (01:10) Long-term vision and the value of today’s announcement
• (02:07) Peloton IQ benefits for current and new members; expansion into wellness (Breathwork, partnerships)
• (03:37) Company guidance and optimism about returning to growth
• (04:41) Support for older devices and hardware
• (05:12) Discussion of profitability and rationale behind new pricing
• (06:48) Competitive landscape in fitness and wellness market
• (08:17) Five-year vision: Peloton as a holistic health partner

Takeaways for Listeners

This episode offers an in-depth look at Peloton’s transformation under CEO Peter Stern—including major hardware advances and a leap into AI-powered and holistic well-being. Stern emphasizes a commitment to both existing and new members, ongoing hardware support, profitability, and an ecosystem that goes beyond fitness into total wellness. He paints a future in which Peloton is an indispensable partner for members’ quality of life, not just their workout routine.