Never turn down money if the cost is right.

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I could purchase my car out right with cash, but since the interest rate was super low, there was no harm in financing it. Similarly, if you can use someone else's money to grow your business, and the terms are quite favorable to you, why wouldn't you?

More likely in Peleton's case, they make profit, but it takes a lot of money to expand.

Or possibly R&D costs.

I also wonder how big the market is for $2000 exercise bikes/treadmills + subscription service... especially when consumer debt is already at a high. Maybe they are thinking gyms/apartment fitness centers will buy them?