Peloton shares climbed by more than 5% on Monday after the company announced a global partnership with Spotify. This deal will bring Peloton’s fitness and wellness content to Spotify Premium subscribers through a new fitness section. Investors see this as an important step for Peloton to expand beyond its declining hardware and subscription business.

The announcement added to Peloton’s recent gains. The stock rose 28% in April but remains down 11% for the year, having lost most value since January 2021. Spotify’s shares fell, suggesting investors view the deal as benefiting Peloton more.

This partnership marks a new direction for Peloton, which has struggled to sustain the rapid growth it saw during the COVID-19 pandemic. Lockdowns boosted sales of home fitness equipment and digital subscriptions, but Peloton’s revenue has dropped every year since 2022. The company is also facing a third consecutive year of losing paid subscribers, which has put pressure on its stock.

Peloton said the Spotify partnership gives it a global presence from the start. The deal expands access to millions of Spotify users worldwide while avoiding the usual costs of entering new markets. The company sees this as part of a broader strategy to diversify its business and reach new international customers.

This partnership follows Peloton’s late-2025 update, which redesigned its hardware with artificial intelligence and computer vision for personalized coaching. The goal was to differentiate Peloton and slow subscriber losses by boosting user engagement.