Peloton Interactive Inc. shares dropped 4% in premarket trading after reporting that revenue sank 13% last quarter, marking the third straight year-on-year decline in sales.

Revenue totaled $624 million in the fiscal third quarter, which ended March 31. That beat Wall Street estimates of about $619 million, but it wasn’t enough to convince investors that Peloton’s new chief executive officer’s bid to turn around the company has fully taken root.

CEO Peter Stern has been trying to whip the company into shape since taking over in January. But revenue has continued to decline, with sales from hardware such as its bikes and treadmills sliding 27% last quarter and revenue from app subscriptions dropping 4%. Peloton thrived during pandemic lockdowns but became mired in a deep sales slump post-lockdowns.

That’s despite Peloton projecting annual revenue of about $2.46 billion to $2.47 billion, the midpoint of which exceeds its prior range. Adjusted earnings before interest, taxes, depreciation and amortization will be $330 million to $350 million, also representing an increase at the midpoint. Peloton credited cost cutting with helping boost profitability.

“During this period of economic uncertainty, we believe Peloton is well-positioned to maintain its leadership within the global fitness and wellness industry,” Stern said in the statement.

During the fiscal third quarter, which ended March 31, the company cut operating expenses by 23% — with a sizable chunk of the savings coming from reduced marketing and sales expenses.

The New York-based company said there is currently a 25% tariff on the aluminum content inside of its hardware, though there’s a larger levy on its apparel, which is imported from China. In total, Peloton is expecting a $5 million free cash flow headwind from tariffs during the fourth quarter, which runs through June.

Stern has been making other changes. The company recently hired a new chief operating officer to replace its head of supply chain and said it plans to replace its head of marketing. Stern, a former Apple Inc. and Ford Motor Co. executive, is known in the industry as a subscriptions expert. He said the company will soon outline its forward-looking plans for fiscal 2026.