-Gross Margin - Before, their gross profit per bike was around $1000. Now, it's $300. This is because costs went up, and the price went down.

-Price - The initial price of the Bike+ was $2245. Due to a lack of features and demand, the price has now dropped to $1495.

The original hypotheses were valid

-Peloton is overly reliant on hardware success.

Peloton's profitability wasn't sustainable as it was driven by a short-term reduction in OPEX.

-Peloton is a one-product company because its Tread was a flop and its digital subscription was no better than free workout classes on YouTube.

-Cost - Treadmill recalls have increased per-unit cost by around 10%.

-The flop of the Bike+ and Tread shows that users aren't willing to buy another bike when they already have one.

What happened to Peloton's profits