Peloton quarterly revenue came in below Wall Street estimates.
The fitness company’s losses amounted to $1.2 billion for the second quarter of the year. Revenue fell nearly 30%, to $678 million, compared to $936 million the year prior.
Peloton’s shares tumbled nearly 20% in early trading Thursday, adding to the near 70% drop so far this year.
After a strong growth in the early days of the pandemic, the company’s road to recovery is now unclear as it struggles with consumers returning to gyms.
“The naysayers will look at our [fourth-quarter] financial performance and see a melting pot of declining revenue, negative gross margin, and deeper operating losses,” Peloton CEO Barry McCarthy wrote in a letter to shareholders. “But what I see is significant progress driving our comeback and Peloton’s long-term resilience. We still have work to do.”
On Wednesday, Peloton said it would start selling its exercise bikes and other accessories on Amazon U.S., sending shares to jump 20%. However, those gains were wiped away Thursday.
The quarterly results marked Peloton’s sixth consecutive losses. The company said it aims to reach break-even cash flow on a quarterly basis in the second half of its fiscal year 2023.