Peloton shares jumped on the back of a new deal. It bet on the Pilates boom

Shares of Peloton Interactive, a small-cap seller of fitness equipment, rose nearly 3% on June 4. It announced the acquisition of startup Skōp, a developer of a smart Pilates machine. On the same day, investment firm BlackRock reported that funds under its management doubled their stake in Peloton.

Peloton shares jumped nearly 3% to $6.2 on the Nasdaq on June 4. That came after the company said it bought Pilates startup Skōp.

It calls itself the developer of the world's first intelligent exercise machine that scans a person's movements during exercise, instantly points out errors and makes recommendations on how to correct them. The trainer is suitable for both home and commercial use in fitness centers, hotels or physical therapy, the company points out.

The purchase of Skōp is strategic and dictated by the growing demand for Pilates workouts, Peloton explained in a press release. In the third quarter of fiscal 2026, ended March 31, user activity for the company's Pilates offerings increased 48% year-over-year. The Sports and Fitness Industry Association indicates in its 2025 report that this type of fitness is the fastest-growing fitness activity in the U.S.

Peloton did not disclose the amount of the deal.

Peloton is looking to expand its offerings and attract new users as part of the company's recovery efforts, Bloomberg writes. The company's business heyday came during the lockdown period during the coronavirus pandemic. But as it ended and people returned to gyms, sales fell.

In May 2024, the company unveiled a restructuring plan to reduce annual costs and appointed Apple Fitness+ co-founder Peter Stern as CEO. A year later, Peloton said it had developed an AI innovation strategy, and in the fall it released an updated line of fitness equipment with integrated AI and computer vision, Peloton IQ. Stern called it "the beginning of a new chapter" for the company.

In April 2026, the company entered into a partnership with streaming service Spotify that will expand its geographic reach.

Since the beginning of the year the value of Peloton securities has remained almost unchanged, while the Russell 2000 index of small and mid-capitalization companies has added more than 18%.

Most Wall Street analysts are cautious about the company's prospects: its stock has 11 "hold" recommendations, ten "buy" and one "sell" recommendation. The average target price of $8 implies a potential upside of 29% from the last close.

In a disclosure released June 4, Peloton said funds managed by BlackRock hold 14% of its shares. They hold a portion through the iShares Core S&P Small-Cap ETF exchange-traded fund. BlackRock had a 7.1% stake in Peloton, according to previous filings. After increasing its stake, it became the largest owner of the company's securities.

In a disclosure released June 4, Peloton said funds managed by BlackRock hold 14% of its shares. They hold a portion through the iShares Core S&P Small-Cap ETF exchange-traded fund. The stake was 7.1%, according to a previous filing.