Peloton’s equipment sales now account for less than a third of revenue, down from $4 billion in fiscal 2021, as demand collapses post-pandemic.
Peloton Interactive (NASDAQ: PTON) has seen its stock plummet 96% from its 2020 high of $163 to current levels, driven by a sharp decline in demand for its at-home fitness equipment post-pandemic. The company’s revenue structure has shifted dramatically, with equipment sales now making up less than one-third of its total revenue through the first three quarters of fiscal 2026, down from $4 billion in fiscal 2021.
At its peak, Peloton’s hardware sales surged during COVID-19 lockdowns, but the company has since pivoted toward digital subscription services to offset weakening demand. Despite cost cuts improving its bottom line, revenue continues to shrink, raising questions about long-term sustainability.
Peloton’s stock, which debuted at $29 in September 2019, remains under pressure as investors weigh the company’s transition to a subscription-driven model against persistent sales declines.