Peloton's flagship bike is now $400 cheaper

• Peloton slashed the price of its Bike to $1,495 from $1,895.
• The model used to cost $2,245, before Peloton rolled out a more premium product, the Bike+.
• Peloton stock fell Thursday afternoon on lackluster fourth-quarter earnings.

Peloton on Thursday cut the price of its entry-level Bike by $400 to $1,495. The price reduction - Peloton's second in one year - comes as sales slow after a pandemic-fueled exercise-bike frenzy.

The Bike is Peloton's lower-cost model, slotting below the $2,495 Bike+. When Peloton introduced the latter in late 2020, it slashed the Bike's price from $2,245 to $1,895.

The Bike can now be had for $39 per month with a 39-month financing plan, down $10 per month. The new pricing extends to all of Peloton's markets. 0% APR financing is also available.

In a press release, the company chalked up the price drop to making its pricey exercise equipment more attainable to consumers.

"Today, we announced our latest step in making Peloton more attainable by lowering the price of our original, award-winning Peloton Bike across all of our markets to $1,495," the company said. "We know price remains a barrier and are pleased to offer our most popular product at an attractive everyday price point."

Peloton rode the pandemic's home-workout wave to its first-ever profitable quarter in 2020. Sales of its sleek stationary bikes, treadmills, and exercise classes surged as the coronavirus kept people from gyms. The company, which went public in late 2019, saw its share price march steadily upward throughout 2020.

But revenue growth slowed in the fourth fiscal quarter, Peloton reported Thursday, and the company posted a net loss wider than expected. Peloton's share price plummeted as much as 11% in late trading following the news.

A massive treadmill recall also strained its balance sheet, but revenues are up more than 54% year-over-year.