Peloton is in a financial rut and has announced a $95 “used equipment activation fee” for secondhand machine buyers, citing the need to maintain a high-quality onboarding experience. This fee, disclosed in the Q4 2024 shareholder letter, will prevent access to classes and features without payment. Those who pay the fee will receive a virtual fitting and hardware usage summary, along with discounts on accessories. Refurbished machines are exempt from this fee, affecting traditional used equipment channels. Peloton raised subscription prices and limited free access to live classes, but recent earnings show a 15 percent stock rise and reduced losses. Affiliate links may earn a commission.
