Peloton Interactive on Thursday forecast holiday-quarter revenue below estimates and the fitness equipment maker warned that a challenging macro-economic environment could affect its goal of stopping cash burn this fiscal year.

The company’s shares fell 18% to $7.10 before the bell but pared those losses, recently trading at $8.42.

Peloton’s goal of achieving breakeven cash flow in the second half of fiscal 2023 was a key point for investors as the company struggles with a slump in demand for its fitness equipment.

“There are risks we will underachieve our forecast, particularly in this economic climate and given the outsized importance and uncertainty of the holiday selling season on overall performance,” the company said in a letter to shareholders.

The exercise bike maker expects second-quarter revenue between $700 million and $725 million, compared with analysts’ estimates of $874 million, according to Refinitiv data.

Peloton was all the rage among fitness enthusiasts during COVID-19 lockdowns, with the company hitting a peak market valuation of nearly $50 billion in early 2021. But with people returning to gyms the company saw demand for its fitness equipment dwindle.

Chief Executive Barry McCarthy has embarked on a wide range of cost-cutting measures since taking the job in February in an effort to pivot the company toward growth.

The company has introduced various measures such as tweaking bike prices, introducing Peloton Row, offering its products through third-party retailers and focusing on digital subscription plans to stimulate demand for its equipment and services.

“Given macro-economic uncertainties we believe near-term demand for Connected Fitness hardware is likely to remain challenged,” according to the company.

Peloton posted cash burn of $246.3 million in the first quarter, compared with $651.9 million a year earlier.

The company reported revenue of $616.5 million that missed estimates of $650.1 million, according to Refinitiv.

Peloton posted a loss of $1.20 per share, compared with estimates of a loss of 64 cents per share.