Photo by Andrew Valdivia on Unsplash
June 6, 2025
Can Peloton’s New ‘Repowered’ Marketplace Turn Around Its Ailing Financials?
It’s no secret that exercise equipment brand Peloton has been facing difficulties in the post-COVID era, sinking from a stock value peak of about $163 in 2021 to about $7.30 as of June 6, 2025.
Now, as Forbes detailed, Peloton is again trying to solidify its turnaround effort with the launch of an equipment and accessories resale marketplace dubbed Peloton Repowered. The launch coincides with remarks made June 5 at a Bloomberg event by CEO Peter Stern — installed at the helm on Jan. 1 this year — wherein he reiterated his focus on revitalizing the business as a “standalone company.”
“I was not hired to sell this company,” he said. “I was hired to bring this company back to growth, reinvigorate it, and that is happening.”
Peloton Repowered Aims To Assist Sellers in Posting Pre-Owned Equipment and Accessories
The Peloton Repowered marketplace is initially available to those belonging to a limited market — sellers located in the Boston, New York City, and Washington, D.C., metropolitan areas — with plans to expand nationally over the course of the months to come.
Still in its infancy, the platform so far will only allow eligible sellers to list items into inventory, with the actual business of buying and selling slated to be brought into play in the next few weeks.
The overall aim of the platform: Members can list their used or pre-owned Peloton equipment and accessories, setting a price with assistance being offered via a generative AI tool. Even though the agentic AI will suggest a price point, users ultimately will be able to determine the final sale price for any items uploaded to the platform.
Those who do opt to sell via the Peloton Repowered marketplace will receive 70% of the final sale price in addition to a discount on new Peloton workout equipment — a discount ranging from $200 to about $600. Furthermore, buyers on the Peloton Repowered platform will be entitled to a substantial discount on the “used activation fee” of $95, which will be more than halved to a more modest $45.
The Archive platform will serve as host to the Peloton Repowered marketplace, with Archive having provided similar services to Dr. Martens, New Balance, and The North Face in the past.
Peloton’s Turnaround Efforts Continue
Peloton has continued to work on its ongoing turnaround effort, with mixed results. Its latest May 8 letter to shareholders detailing its Q3 2025 financial results told the tale concisely.
Membership declined by 8%, from 6.6 million in Q3 2024 to 6.1 million in the third quarter of 2025. Paid connected fitness subscriptions also trended downward (by 6%), from 3.051 million to 2.88 million during that same time frame.
Total revenue tumbled as well, falling 13% year-over-year to $624 million from a year-prior position of $717.7 million. On the other hand, total operating expenses were slashed from $455.9 million to $350.5 million (-23%), and net loss was significantly curtailed from $167.3 million in losses to $47.7 million (an improvement of 72%).
“[Stern] said that Peloton must evolve into a more personalized coach powered by AI, while expanding its reach through retail, international markets, and travel, including a stronger presence in hotel gyms. The company has implemented several initiatives to steady the business, including 15% job cuts announced last year and shifting its focus to subscription sales over hardware,” Forbes reported.
“The company last month also initiated a pricing strategy to offer discounted equipment rates for eligible educators, healthcare workers, first responders and military personnel in the U.S.,” the outlet added.
Discussion Questions
Will Peloton’s new Repowered marketplace meaningfully help to turn around its ailing fortunes? Why or why not?
How can Peloton work to differentiate its marketplace option versus those put forth by other retailers, and does it even need to do so?
Aside from its marketplace effort, will Peloton’s focus on AI coaching, expansion of reach into retail and international markets, and targeted discounts be enough to right the ship?
Poll
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This will not resolve all of Peloton’s financial issues, but it is a sensible move, nonetheless. For one thing, it will generate a bit of incremental revenue at minimal cost. For another, it will expand the number of equipment owners which, in turn, may help content subscriptions. Peloton’s subscription business is profitable, and this is the arena where the group can push itself into the black.
+ to the Subscription business (replace lapsed members)
+ to ecology/Earth health (recycled equipment)
+ to health for the new exercisers (if equipment doesn’t collect dust). They quite possibly have already tried it elsewhere (at gym or hotel)
? if the Buyers of the used equipment would ever have splurged on new
Recently saw in hotel gym, a guest using the Peloton bike screen to do a guided class with weight. But not using the bike.
Time will tell how many years “repowered” holds up.,,in equipment, and branded interest
So let me get this straight: Peleton wants to help people… unload equipment that had previously been purchased from them? How helpful! And – OMG – could there possibly be a clearer indication you don’t expect to sell much new ?
This is worse than “bringing a knife to a gunfight”—it’s bringing a broken knife when the battle requires artillery. The “Repowered” marketplace will not move the needle, and even worse, it represents a dangerous distraction that burns precious resources while the core business hemorrhages subscribers.
The marketplace creates a vicious cycle of margin compression. Beyond generating minimal revenue, Peloton is essentially subsidizing equipment upgrades, retaining only 30% of the resale proceeds while offering sellers discounts of $200-$ 600 on new equipment. This creates negative unit economics where facilitating one used sale requires subsidizing new equipment purchases, compressing margins on both ends of the transaction. More critically, it legitimizes and streamlines the very market forces that depress new equipment pricing.
Meanwhile, the real battlefield has shifted entirely. Americans have decisively returned to gyms, with usage nearly doubling pre-pandemic levels and Gen Z leading the charge back to social, accountable fitness experiences. Peloton is fighting yesterday’s war—optimizing for home fitness distribution (even if powered by AI) while their target demographic rediscovers the irreplaceable social energy of group workouts.
With membership declining 8% year-over-year and the connected fitness market maturing into commoditization, Peloton needs bold strategic moves that address the retention crisis head-on. Every dollar spent facilitating equipment circulation is a dollar not invested in content innovation, community features, or gym partnerships that could actually reverse their trajectory.
It’s not the solution to fix Peloton, but has immediate upside in creating structure and value in the brand’s future, in a more focused channel to market new products to would-be customers scattered everywhere.
Buyers can confidently compare pricing and condition of used equipment with confidence, reducing hassles. Sellers feel greater confidence by not having to randomly list on sites which feel like a garage sale, aka Craigslist/Facebook, while also reducing shipping hassles.
Last, this may also help manufacturing forecasting and future sales cycles, in gathering greater feedback on equipment, as well as in understand current demand/pricing sensitivity.
Peloton suffers from (amongst other things) what so many before it in the fitness industry have suffered from, which is exercise burnout. It is one thing to purchase the bike. Another thing to pay a subscription in order to endure different training routines, and quite another to stick with it for the long haul. The vast majority of us who start this journey find the excitement wanes pretty quickly, leading to dusty stationary bikes.
Only now you can sell those dusty bikes to others who are a couple of months or years behind on the “I am going to get fit” journey.
The CEO should alter his aspirations and get out when a buyer presents itself.
Maybe we can say he should exercise his options.
The Repowered program only makes sense if it adds subscribers. The entire subscription fitness industry going through challenging times. My suggestion is to look at Amazon’s subscription model. They have massive retention (and growth). I remember an interview with Jeff Bezos talking about how Amazon is adding value to its Prime program, far beyond the “free shipping” the original Prime membership offered. So Peloton may want to ask, “What can we add to the subscription that:
a. Will decrease churn?
b. May cause members to be willing to pay more (because the value proposition is that good)?
Diversification & data platform are Amazon super powers.
The 3 way circus of Peloton content—Mirror equipment–Lululemon did not work so well.
Peloton Repowered feels like a timely and useful move. It gives existing customers a way to resell their equipment while staying within the Peloton ecosystem. For new buyers, it offers a more affordable entry point into the brand. This also supports sustainability by encouraging reuse. It’ll be interesting to see how it performs as the program scales.
Repowered might not be a major revenue driver on its own, but it lowers the barrier to entry – which is key for growing subscriptions. If it helps bring more users into the ecosystem, it could be a practical step toward reactivating growth.
There’s very little to be optimistic about this move. I had to read their plan for subscriptions a couple times to try to distill how this tactic would enable them to really drive a turn around. Sadly, the issues they’ve been having since Covid with delcining membership are likely to be accentuated as more people feel the bite of tariff inflation and for Pelaton customers especially, unstable markets.
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