The once-hot company reported a sad quarterly report on Tuesday, with sales falling 15% from a year ago. The peloton lost $ 757 million last quarter.
When people return to gyms, the Peloton has struggled to maintain its electrical growth from the early days of the pandemic. Bicycle and subscription sales have stagnated. The company has too much inventory, and demand is declining.
“Turrounds are hard work,” McCarthy said straight to investors in a shareholder letter. “It’s intellectually challenging, emotionally draining, physically exhausting and all immersive. It’s a full-contact sport.”
But the company’s comeback – if there is one to get – is slower than Wall Street wants. The peloton added only 195,000 new subscribers last quarter, less than half of what it was a year ago. And the company said it would sell around $ 700 million this quarter, far below what investors had expected.
Peloton shares fell as much as 19% in pre-market trading. The stock is down around 90% from when it reached its record high at the end of 2020.
To stay afloat, McCarthy said Peloton borrows $ 750 million in five-year debt from JPMorgan and Goldman Sachs, two banks that helped guarantee the listing.
“I want to thank everyone involved for their hard work in completing this important funding and look forward to reporting on our progress in transforming Peloton’s business in the coming quarters,” McCarthy said.