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Thursday, April 24, 2025

Peloton Expanding Into Hotels, Health Clubs

  • Peloton is leveraging its $420 million acquisition of Precor to bring its machines into hotels, health clubs and universities.
  • It is also still battling lawsuits and investigations related to its treadmill safety.
woman_riding_peloton
Peloton/Design: Alex Brooks

Peloton is branching out beyond the home into public spaces.

The fitness leader is leveraging April’s $420 million acquisition of Precor — which supplies workout machines to hotels, health clubs, and universities — to get hotel guests and others to sample its offerings.

“We’ve been selling Peloton bikes into hotels and resorts for years,” said Brad Olson, Peloton’s chief business officer. “But this is really the culmination and one of the big elements of the deal rationale of why we purchased Precor.”

It’s been a dizzying year for Peloton. The company has faced a slew of lawsuits and government investigations related to a voluntary recall of its treadmill in May after reports of at least 70 injuries and one death — yet it company continues to rapidly expand.

  • In September, the company launched its own apparel line. 
  • It’s working on a video game in which its connected bike would act as the controller.
  • It’s expanding into wearables, starting with a wristband that monitors heart rates.
  • App updates suggest that Peloton is preparing to roll out a rowing machine.

The company stumbled in its fiscal fourth quarter, with revenue down 25.8% from the previous quarter, though the $937 million figure was an increase of 54% year-over-year.

Peloton, which lowered the price of its bike from $1,895 to $1,495 in August, lost $313 million in the quarter and doesn’t anticipate a return to profitability until fiscal 2023.

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