Ever since seasoned subscription business veteran Barry McCarthy took over as CEO of connected-fitness company Peloton Interactive (NASDAQ: PTON), the company has been on a mission to reach 100 million members. For perspective, it had 6.5 million members as of its fiscal fourth quarter of 2023, the most recent quarter, which ended in June. 

To assist with its membership goal, Peloton just partnered with athletic apparel company Lululemon (NASDAQ: LULU). For its part, Lululemon is abandoning connected-fitness hardware and content, relying on Peloton to provide those things for its customer base. Likewise, Peloton is moving away from its nascent apparel business, allowing Lululemon to provide that.

By partnering with Lululemon, Peloton's fitness content gets greater exposure to a large demographic, which could drive new subscribers. McCarthy is undoubtedly excited because that's the big-picture goal. Moreover, Peloton's subscription business is high-margin. 

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Source Fool.com