Peloton Interactive forecast a revenue decline for fiscal 2027 as subscriber losses deepen, overshadowing fourth-quarter profit gains and virtually flat revenue. The exercise equipment and media company lost about 247,000 paid fitness subscribers in the quarter.

On Thursday, Peloton Interactive projected revenue between $2.3 billion and $2.4 billion, a 3.9% decline at the midpoint over the prior year. The target range falls below analyst forecasts of $2.44 billion for the year, according to FactSet.

Despite the revenue pressure, gross margins are expected to rise 140 basis points to 54%, while adjusted earnings before interest, taxes, depreciation and amortization are projected between $475 million and $525 million, representing a 6.8% increase at the midpoint.