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Shares of Peloton cratered nearly 10% on Tuesday after dismal quarterly earnings that showed the at-home fitness company is continuing to lose money at a torrid pace, with recently appointed CEO Barry McCarthy warning that turning the business around will take some time.


Peloton’s stock was sitting near record lows late Tuesday morning at less than $12 per share.

Struggling with lower customer demand as people return to gyms following the end of pandemic safety precautions, the at-home fitness equipment maker recorded a loss of $757 million in the quarter ending March 31, compared to a quarterly loss of just $8.6 million a year ago .

Revenue also came in short of expectations, dropping 15% to $964 million, which is Peloton’s first year-over-year sales decline since it went public in 2019.

Peloton finished the quarter “thinly capitalized” with $879 million in cash, according to McCarthy, down from over $1.1 billion a year ago.

With sales slowing, the company is carrying a large inventory of unsold bikes and treadmills even after slashing prices last month, which has “consumed an enormous amount of cash, more than we expected,” McCarthy said.

Peloton added 195,000 new subscribers—less than half the amount added in the same period a year ago, while management also forecast just $700 million in sales this quarter, which is well below the more than $800 million expected by analysts.