What happened

Shares of Peloton Interactive (PTON 2.85%) are rising 3.9% at 10:35 a.m. ET on Wednesday despite the connected-fitness equipment manufacturer announcing on Monday that it was delaying filing its annual report with the Securities & Exchange Commission.

Peloton said it needs more time to evaluate charges it will be taking associated with getting rid of its warehouses as part of its restructuring. It also needs to determine whether its internal controls over financial reporting are effective enough in light of these strategic developments.

Man running on connected treadmill.

Image source: Getty Images.

So what

Peloton looks like it's on its last lap as sales of its equipment are plummeting, few new customers are signing up for its connected-fitness classes, and a massive $1.2 billion crater of red ink has opened up on its financial statements.

The fitness guru is backpedaling as fast as possible. It's getting out of the business of delivering its own products, instead deepening ties with third-party shippers and also allowing customers to put together their own exercise bikes instead of having its employees set them up.

Peloton has also opened a storefront on Amazon to try and reach a broader market.

Now what

The partial rebound in its stock comes after an 8.5% drop in Peloton's shares the day before following the delayed-filing announcement. The market might believe the previous stock action was too severe since it's not uncommon for companies to delay filings around major business upheavals.

Peloton might not have had enough time to determine the fair value of its warehouses as required by regulations before the filing deadline. It's been trying to figure out how to adjust to a reopened economy that includes gym stocks seeing a rise as people return to in-person fitness facilities.