Core Viewpoint - Peloton Interactive is attempting to revive its sales growth by leveraging artificial intelligence to enhance its exercise equipment capabilities, following a significant decline in revenue since its peak in fiscal 2021 [1][2]. Revenue and Sales Performance - Peloton's total revenue peaked at $4 billion in fiscal 2021 but has declined for four consecutive years, with projected revenue of $2.4 billion in fiscal 2026 [4]. - Equipment sales, which peaked at $3.1 billion in fiscal 2021, fell to $817 million in fiscal 2025, contributing significantly to the revenue slump [5]. New Product Launch - The company launched the Cross Training Series on October 1, featuring advanced AI technology called Peloton IQ, aimed at enhancing user experience during strength training and other exercises [6][7]. - The new equipment is priced higher than previous models, with the Cross Training Bike+ retailing at $2,695, which may limit its appeal to a broader customer base [8]. Cost Management and Profitability - Peloton's operating costs were reduced by 62% in fiscal 2025 compared to fiscal 2022, resulting in a narrowed net loss of $118 million [10]. - Excluding one-off and non-cash expenses, Peloton achieved an adjusted EBITDA of $403 million in fiscal 2025, indicating a return to profitability [10]. Future Outlook - The company must demonstrate sustainable revenue growth to ensure long-term viability, as continued cost-cutting will not be a sustainable strategy [11][12]. - The stock has declined 94% from its 2020 peak, and investing in a shrinking business poses risks to shareholder value [13].