Peloton's stock dropped 22% on Wednesday after the company released its earnings for the months of April through June. In its release, the company said it has 6.5 million members, down from 6.9 million members a year earlier.
Company Chief Financial Officer Liz Coddington suggested that seasonality and the company's recent seat post recall were major factors. Peloton said it believes about 15,000-20,000 members paused their memberships due to the recall. The company said, however, that some continued to use their bikes despite the recall.
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