I was surprised to see how low the gross margin is on their subscription business, it has only recently broken above 50%. The cost of revenue for their subscrip

I was surprised to see how low the gross margin is on their subscription business, it has only recently broken above 50%. The cost of revenue for their subscription business includes licensing the music in their workouts, and the costs to operate their NYC and London studio. I was also surprised to see the margins on the bike itself are about the same as on the subscription business. They have room to lower the price of the bikes to get more customers hooked on that sweet, sweet recurring subscription revenue.