Yahoo Finance anchors discuss the setbacks Mark Wahlberg-backed gym chain F45 is facing.
BRIAN SOZZI: Mark Wahlberg-backed gym chain F45 is under pressure after reporting a quarterly loss of $35 million and announcing the implementation of a cost reduction plan. Never want to hear that from a startup. This comes up after the company fired most of its workforce last month and also let go of its CEO.
You see Mark Wahlberg on the screen right there, I think holding an iron. But anyway, Mark Wahlberg has sold $13 million in stock here. Still one of the company's largest shareholders. Company came public at a $1.4 billion valuation.
Its market cap right now, according to Yahoo Finance data, about $200 million. Their losses have racked up, adjusted operating profits are down here for the past six months, and this comes alongside we have talked to the folks at Planet Fitness. We have talked to Xponential Fitness. Those companies are hitting home runs. And essentially, this company is not doing well, as people are leaving their Peloton bikes and going back to the gym and this company just can't get it done.
JULIE HYMAN: I thought this was a SPAC, to my recollection, but it wasn't. It was an IPO and it came public at $16, class of 2021.
BRIAN SOZZI: Another one
JULIE HYMAN: Came public last July and we have just seen company after company that came public last year just not doing well because they came into capital markets at the time when there was a lot of enthusiasm and that enthusiasm has gone away.