Fitness platform operator Peloton Interactive, Inc. (PTON) offers connected fitness products. Demand for its services experienced a major spike during the pandemic, with people spending most time indoors. However, with a return to public gyms following the reopening of the economic activities, demand for its products has since slowed.
To compound this setback, the company is recalling over 2 million exercise bikes in the United States due to injury risks associated with the bikes’ seats. Additionally, PTON announced in its third-quarter shareholder letter that its $75 million settlement with DISH Technologies would likely impact fourth-quarter free cash flow.
