Peloton wants to help you get stronger

After completing a billion-plus dollar debt refinancing earlier this year, Peloton is no longer facing a liquidity crunch. But the fitness company, which last turned a profit in December 2020, is still in the midst of nine consecutive quarters of sales declines and in need of a new strategy to turn its situation around.

One area it sees opportunity? Placing more of an emphasis on strength training vs. cardio.

And the company may be on to something – a growing amount of data indicates strength training these days isn’t just for Chads and muscle mommies.

• According to Life Time’s annual survey of 3,000 respondents, building muscle was the No. 1 goal for 2024, ahead of weight loss and general movement.
• Strength training with free weights ranked as the second-most popular fitness trend in 2023 after wearable fitness technology, per an annual survey in the American College of Sports Medicine’s journal.

Peloton is also experiencing…strong demand. According to the company, its strength training content is the most popular type of class for digital members (not its cycling or running classes), as well as #2 among those who have Peloton hardware.

Between the lines: The goal for many isn’t necessarily to look like The Mountain or Ahr-nald in his prime – strength training has tangible health benefits. An analysis of 16 studies suggests regular strength training is associated with a 10%–17% lower risk of cardiovascular disease, diabetes, lung cancer, and death overall. And another study of 400,000+ people published in 2022 found those who regularly practiced strength training along with aerobic exercise (cardio) had a lower risk of death than those who did just aerobic training.

👀 Looking ahead… Peloton is launching three beta programs in the coming weeks, one of which is a brand new app called Peloton Strength+ – which, as the name suggests, focuses exclusively on strength training. But it’s not the only company leaning into the trend. Planet Fitness has also shifted focus after finding its members were seeking more strength and less cardio equipment, especially Gen Z, who make up 25% of the company’s base.

+In the know: Peloton reports quarterly earnings this morning before the bell.