Peloton shares plunge as fitness firm faces hard race

Delivery costs also are squeezing margins, and there are fears that some subscribers may balk at proposed price increases.

Peloton have signed a deal with JP Morgan Chase and Goldman Sachs to borrow $750m in five-year term debt.

Shares in Peloton Interactive plunged as much as 20% to a record low after the fitness company reported a deeper loss than predicted and cut its revenue guidance, dashing hopes that the onetime pandemic darling will soon pull out of a slump.

After posting disappointing quarterly results, Peloton offered an outlook with little to relish — demand for its once-hot stationary bikes continues to soften, and some subscribers may balk at proposed price increases.