Peloton gets bump from acquisition of Pilates startup

Shares of Peloton Interactive, a small-cap fitness equipment seller, rose around 3% on Thursday after the company announced the acquisition of Skōp, a developer of smart Pilates equipment. The same day, investment firm BlackRock disclosed that funds under its management had doubled their stake in Peloton.

Peloton shares climbed around 3% on Nasdaq on Thursday to $6.20 apiece after the company announced the acquisition of Pilates startup Skōp.

Skōp describes itself as the developer of the world’s first smart reformer, capable of tracking a user’s movements during workouts, instantly identifying mistakes, and providing guidance on how to correct them. The equipment is designed for both home and commercial use, including fitness centers, hotels, and physiotherapy settings, according to the company.

The acquisition of Skōp is strategic in nature and is driven by growing demand for Pilates workouts, Peloton said in a press release. In the third quarter of its fiscal 2026, ended March 31, engagement with Peloton’s Pilates offering increased 48% year over year. The Sports & Fitness Industry Association said in its 2025 report that Pilates is the fastest-growing fitness modality in the U.S.

Peloton did not disclose the value of the transaction.

Peloton is seeking to expand its offerings and attract new users as part of its turnaround efforts, Bloomberg reported. The company’s business flourished during coronavirus lockdowns. But after restrictions were lifted and consumers returned to gyms, sales declined.

In May 2024, the company unveiled a restructuring plan aimed at reducing annual expenses and appointed Peter Stern, a cofounder of Apple Fitness+, as CEO. A year later, Peloton said it had developed an AI innovation strategy and in autumn 2025 launched an updated equipment lineup featuring its AI- and computer vision-powered Peloton IQ system. Stern described the move as the beginning of a new chapter for the company.

In April, Peloton entered into a partnership with streaming service Spotify that will expand its geographic reach.

Peloton shares have been largely flat year to date, while the Russell 2000 index of smid-cap stocks has gained more than 18%.

Most Wall Street analysts remain cautious on the outlook for the shares. The stock has 11 “hold” ratings, 10 “buy” calls, and one “sell” recommendation. The average target price of $8.00 per share implies 29% upside currently.

In a filing published on Thursday, BlackRock disclosed that funds under its management owned 14% of Peloton’s shares. Part of the stake is held through the iShares Core S&P Small-Cap ETF. According to previous disclosures, BlackRock’s stake stood at 7.1%. BlackRock is now Peloton’s largest shareholder.