Peloton is releasing its cheapest treadmill yet as it bets on running for a turnaround

CNN — New York (CNN) — Peloton is launching its cheapest treadmill yet, in the hope that running's surging popularity will spur sales.

The fitness equipment maker announced Tuesday it will soon release a $2,195 treadmill called the Tread Flex. That's about $1,000 cheaper than its current lineup, and also the company's first-ever foldable device that contracts to roughly half its size. Peloton hopes the space-saving design will entice new customers, like those with apartments or smaller homes, to buy the company's pricey equipment.

Focusing on walking and running is a major initiative for CEO Peter Stern, who has the massive task of transforming the beleaguered company. Once a pandemic-era success story, sales have slumped in recent years and its stock has fallen 42% since it last unveiled new products, in October 2025. That equipment ultimately failed to lure back shoppers and the company conducted another round of layoffs at the beginning of the year.

Peloton is best known for its stationary bikes, but Stern said in a press release that doubling down on treadmills "will allow us to connect with a much wider audience" and help it "win the multibillion-dollar at-home treadmill market."

The at-home treadmill market for North America is forecast to grow 40% into a $5.6 billion category by 2030. Stationary bikes are expected to grow at a much slower pace.

Peloton, which helped create the connected fitness industry, "overestimated how permanently pandemic-era behavior would shift toward at-home exercise," said Joe Vennare, CEO and cofounder of health newsletter Fitt Insider.

Running and walking have grown since the pandemic because they're inexpensive and are bringing people together with clubs, he said.

"The fitness landscape is evolving toward more sustainable and habitual routines rather than overly choreographed or intense workouts," he told CNN, adding that spinning classes have "clearly lost momentum" because people want the "community, convenience, measurable progress, and better health outcomes" offered by strength training and running.

Peloton also has the hurdle of cost. People can run outside for free or use cheaper fitness apps, as well as buy inexpensive walking pads and go to budget gyms.

Vennare said that the Tread is a strong product, but Peloton needs to be better attuned to what today's customers wants, like tracking the entire running journey or integrating into a holistic fitness routine. (Peloton is also announcing Tuesday expanded integration with Whoop, building on its existing partnerships with Garmin, Apple Health and Fitbit.)

The Tread Flex is part of a broad revamp of the treadmill lineup, including an upgraded $3,495 Tread Vision, which has a new cushioning system, and a $6,695 Tread+ Vision aimed at extreme fitness buffs, like HYROX members, with powerful resistance features.

All three treads are equipped with swivel TVs for its streaming classes and cameras for its AI technology, which delivers instant feedback. They go on sale on October 1 in North America, ahead of the holiday shopping season.