Peloton has successfully refinanced its debt, alleviating immediate liquidity concerns and buying time to address its long-standing profitability challenges. The fitness company secured $1.45 billion in new loans and credit lines, greatly reducing its debt burden. While this move has reassured investors and provided breathing room, Peloton still faces significant risks, including higher interest expenses and ongoing demand issues post-pandemic. It must now navigate the decision of whether to prioritize its hardware or content offerings, or find a balance between the two. Cost-cutting measures have already been implemented, but further adjustments may be necessary to ensure sustained positive cash flow. The company's next steps, including the appointment of a new CEO, will be crucial in determining its future trajectory and success in the competitive fitness industry. Peloton's loyal subscriber base and high-margin subscription revenue offer potential for profitability, but strategic decisions and effective management will be essential for long-term viability.