Peloton Loans, a source of stable income for investors

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Peloton has had a dramatic year, but its financing options are nonetheless prized for their stability by the banking sector.

Peloton contracts with lender Affirm to offer zero-interest loans on its connected bikes and other fitness equipment, which are then often packaged and sold to financial institutions looking for a safe bet.

  • Peloton, Affirm’s biggest customer, generated around 20% of lender’s $ 870.5 million revenue for the year ended June 30.
  • Unsecured loans to Peloton clients made up the bulk of the $ 845 million Affirm has garnered since 2020 through the packaging of zero interest loans. The interest on these loan packages starts at just over 1%.
  • In August, the home fitness giant lowered the price of its signature bike to $ 1,495 from $ 1,895. His treadmill sells for $ 2,495. It resumed sales of treadmills on August 30, following a costly recall.

The company recently launched its own clothing line and is it is believed to be working on a rower.

While Peloton’s revenue from product sales fell in the second quarter, subscriptions to its training service have increased steadily.

The company more than doubled the number of connected fitness subscribers to 2.3 million in the fiscal year ending June 30, bringing in $ 541.7 million to this segment.


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