Peloton (PTON) shares tumbled over 20% in early trading on Wednesday after reporting a wider-than-expected loss as falling suܫbscriber numbers and recall costs impacted its results.

Peloton reported a net loss of $241.8 million or 68 cents per share for the quarter ended June 30, down from $1.26 billion or $3.72 a share in the same period a year ago.

The fitness equipment company said it lost 29,000 subscribers in the quarter, and costs from a recall "substantially exceeded our initial expectations" at an additional $40 million for actual costs incurred over the quarter and future recall-related expenses.

Peloton said it received approximately 750,000 replacement requests related to its 澳洲幸运5官方开奖结果体彩网:seat recall in May. To date, the company has fulfilled 340,000 and is on track to complete replacements by September, ahead of its own projection✤s, but slower than previously expected. Roughly 15,000 to 20,000 users affected by the spring recall paused their subscriptions.

Peloton warned it could be cash flow negative for the next two quarters, and said it is leaning into commercial and corporate wellness, and making moves to expand its appeal with a broader base of consumers. The company said introducing new subscription tiers of the Peloton app has brought a "significantly higher mix of higher priced App tier (App+) Members" than expected, and growth in adoption of its free offering.

With Wednesday's losses, shares of Peloton have lost close to one-third of their value this year.