Peloton’s got a new head honcho. The company announced that Ford executive Peter Stern will take over as CEO and President starting January 1st. Stern previously worked at Apple and Time Warner Cable.

“As a cofounder and driving force behind Apple Fitness Plus, Peter led his growth to millions of members, and is responsible for successfully scaling over a dozen other subscription services ranging from Ford BlueCruise to Apple iCloud to Time Warner Cable Home Security,” said Karen Boone, Peloton’s interim CEO, on today’s Q1 2025 earnings call. “Importantly, Peter has also been a passionate member of the Peloton community since 2016.”

In a Q&A with investors, Boone also emphasized that Stern was “known for execution” and that the ability to balance profitability and growth was top of mind in the search for a new leader. Notably, Peloton’s downfall was due to the company throwing hundreds of millions at growth opportunities while failing to account for waning demand after vaccines became widely available.

Stern’s appointment is further evidence that Peloton increasingly views its future is in services. Stern spent more than six years at Apple as VP of services. On top of his experience with Fitness Plus, a direct competitor for Peloton, he handled Apple TV Plus, iCloud, Apple News, Apple Books, Apple Arcade, and Apple One.

Peloton also noted several new software features are in the works. That includes a previously announced strength training app for gym-goers, which has had 70,000 signups thus far. The company is also testing a second game after seeing that 10 percent of active subscribers engage with its Lane Break game. It’s currently in a closed beta of roughly 100 existing Bike Plus members. Another beta feature is called Personalized Plan, which gives users a weekly workout plan based on an individual member’s fitness goals.

In its earnings call, Peloton said its total revenue slightly exceeded estimates at $586 million — $160 million from hardware sales, and $426 million from subscriptions. The company also raised its full year 2025 revenue guidance by $40 million, and said it expects to have positive free cash flow in all four quarters. Stock prices surged 22 percent thanks to stronger-than-expected financials and Stern’s appointment.