Questions are now being asked as to how long Peloton the technology exercise bike Company will last in Australia with analysts claiming its “path to growth doesn’t seem to exist.”

The US Company that loves splashy shop locations and expensive exercise gear saw their shares crash last night over 8% the biggest fall in weeks, after a resurgence in growth concerns and an exercise-bike recall.

Peloton shares are down 95% since January 2021.

Analyst Zach Morrissey expects demand for at-home fitness products to remain muted after the pandemic pulled forward interest, and he has limited confidence in the company’s new growth initiatives, including its fitness-as-a-service rental program and third-party distribution.

In addition, the path to sustainable profitability and free cash flow is unclear, Morrissey said.

ChannelNews understands that the Australian business is still unprofitable.

Bloomberg reported “The company has made material progress improving its cost structure and liquidity runway recently,” he wrote in a research note assuming coverage of Peloton from a previous analyst.

“However, we are cautious on the ability of recent initiatives to reaccelerate growth in a profitable way.”