To turn things around, Peloton decides to make hardware people actually want

Peloton needs more people to buy its hardware and subscribe to its All-Access membership to turn its business around. Its next grand idea? Make a machine that people have been clamoring for for years.

The company is planning to release a rowing machine at some undetermined point in the future, it teased Friday at its annual Homecoming event for Peloton members. Peloton shares rose almost 10% on the news.

"The rumors are true — Peloton will be bringing its best-in-class fitness experience to the world of rowing!" the release said. "Combining cardio and strength — Peloton is excited to add this total body workout into its powerhouse arsenal of content and grow its connected fitness portfolio with even more options for engaging and challenging workout experiences."

The rowing machine has been a long time coming. Bloomberg reported in late 2019 that the company had been working on one to diversify beyond cycling and running. The hardware itself looks similar to Peloton's bikes and treadmills, with a screen and multiple company logos. The company's last product, a strength-training camera called Peloton Guide, was released earlier this year.

The new release comes after Peloton adjusted prices for its treadmills and bikes. The company dropped the prices of its Bike, Bike+ and Tread last month, and plans to hike the cost of its All-Access subscription beginning June 1, blaming the increase on its expanded suite of content.

Peloton has been pushing to get back on track after a shaky few months. Its stock dropped 20% earlier this week after reporting a big net loss, which CEO Barry McCarthy told shareholders was because the company was short on cash at the end of the first quarter and needed to borrow money as a result. The company also laid off 41% of its sales and marketing staff in February.

McCarthy is trying to turn the company around without seeking help from other companies. He took over as Peloton's head in February, and the company tapped longtime supply chain exec Andrew Rendich in March to oversee its supply issues. Companies like Amazon and Nike showed some interest in buying the company, but McCarthy said a sale isn't in the cards (for now).