Peloton appoints one of the co-founders of Apple Fitness Plus as its new CEO.
The financial results of Peloton for the first quarter of 2025 exceeded expectations.
Peloton has appointed a new CEO and President, Peter Stern, who will take office starting January 1. Stern, a former executive at Ford, also has experience at Apple and Time Warner Cable. During a first-quarter earnings call for 2025, Karen Boone, interim CEO of Peloton, highlighted Stern's achievements at Apple Fitness Plus, where he was a co-founder and contributed to the platform's growth, increasing its membership to millions. Boone also noted that Stern has been a passionate member of the Peloton community since 2016.
Boone emphasized in a Q&A session with investors that Stern is known for his execution ability and that a focus on profitability and growth was crucial in the search for a new leader. Peloton has faced challenges in the past due to massive investments in growth opportunities without considering the decline in demand following the widespread availability of vaccines.
Stern's arrival reinforces Peloton's vision of focusing on services. During his time at Apple, where he was Vice President of Services for over six years, he managed several products, including Apple TV Plus and Apple Arcade, in addition to Fitness Plus, which competes directly with Peloton. The company has also announced several new software features in development, such as a strength training app that already has 70,000 sign-ups. They are also testing a second game following the success of Lane Break, in which 10 percent of active subscribers participate. Another resource in testing is the so-called Personalized Plan, which provides users with a weekly workout plan based on each member's goals.
Regarding its financial results, Peloton reported total revenues that slightly exceeded estimates, reaching $586 million, of which $160 million came from hardware sales and $426 million from subscriptions. The company also raised its revenue projection for the entire year of 2025 by $40 million and expects to record positive free cash flow in all quarters. Peloton's shares experienced a 22 percent increase thanks to these stronger-than-expected financial results and Stern's appointment.