Peloton’s profits plummet $ 757 million, a sign that the pandemic bubble has burst.

Peloton, the connected fitness bike maker who was one of the hottest companies in the early days of the pandemic, announced this morning that it had lost $ 757 million in the first three months of the year, far more than analysts expected. It also burned roughly the same amount of money.

It is the first earnings report below Peloton’s new chief executive, Barry McCarthy. Since he took over, Mr. McCarthy has focused on addressing supply chain problems, lowering costs and experimenting with the company’s pricing model. “Turnarounds are hard work,” McCarthy wrote in a letter to shareholders today.

The quarter included more than $ 200 million in write-downs, of which about $ 30 million covered inventory that the company no longer believes it can sell. Membership only increased 5% from last quarter, to seven million. And revenue was down 24%, to $ 964 million. 60% came from products and 40% from subscriptions.

The company has $ 879 million in cash, which according to Mr. McCarthy is leaving Peloton “small cap for a business of our scale.” Earlier this week, Peloton signed a binding commitment letter with JP Morgan and Goldman Sachs to a Loan of $ 750 million.

Peloton’s decline in earnings is yet another sign of the pandemic bubble bursting. Peloton’s stock was expected to drop another 10 percent this morning. The company now has a market value of approximately $ 4 billion, down more than 90% from its high of $ 47 billion in early 2021. Shares in Zoom, another treasure of the pandemic, are also decreased 83% from October 2020. The virtual conferencing company now has a market value of $ 27 billion, or about its pre-pandemic value.