Peloton Interactive Inc. reported a deeper loss than analysts predicted, cut its revenue guidance, and signed a deal with JPMorgan Chase & Co and Goldman Sachs Group to borrow $750 million in five-year term debt, marking the latest setbacks for the onetime pandemic darling. The shares tumbled about 17% as the market opened.
The results suggest Peloton’s comeback effort is still a long way from taking hold, despite a shake-up earlier this year. In February, co-founder John Foley was ousted as CEO after sales slowed and Peloton struggled to manage its production. He was replaced by former Spotify Technology SA and Netflix Inc. Chief Financial Officer Barry McCarthy, who vowed to cut costs and generate more of Peloton’s revenue from subscriptions.
Peloton on Monday debuted its first tagline—“Motivation That Moves You"—as the company looks to rebound from months of losses.
The fitness technology company reported revenue of $964.3 million in the fiscal third quarter on Tuesday, missing a Wall Street estimate of $971.6 million. The net loss was $757.1 million, excluding some items, compared with an average estimate of $132.1 million.