Peloton announced plans to sell $1.1 billion of its Class A common stock in an effort to come up with more cash as demand for its products slows.

The reported public offering of 23.9 million shares at $46 each contradicts the connected fitness company’s statements earlier this month that it didn’t need additional funds, despite a temporary hiring freeze and cutting its full-year revenue outlook by as much as $1 billion.

Peloton missed Wall Street revenue estimates of $810.7 million in fiscal Q1 2022, bringing in only $805.52 million — but new products and services continue to roll out.

• The company recently unveiled the Peloton Guide, a connected strength product sold in a bundle for $495 with the company’s new heart rate armband.
• Peloton also began offering five classes on Delta Air Lines flights at the beginning of the month.

As part of the sale, Peloton expects to grant the underwriters a 30-day option to purchase additional shares of up to $150 million at the public offering price.

The company said accounts advised by T. Rowe Price Associates and affiliates of Durable Capital Partners and TCV are already interested in purchasing shares.

As of Tuesday’s market open, Peloton shares have fallen almost 70% year-to-date.

UFC and WME parent company Endeavor posted $1.4 billion in third-quarter revenue on Tuesday, recording $63.6 million in net income.

The company says it delivered its “best nine-month, year-to-date period in UFC history,” for the span ending Sept. 30, despite third-quarter revenue for its owned sports properties division falling by $10.6 million year-over-year to $288.5 million.

Endeavor’s events, experiences, and rights segment jumped $62.1 million to $446.3 million, though it was “partially offset by a decrease in media rights revenues.”

During the quarter, Endeavor made a number of moves to expand its sports business.

• The company announced its intent to acquire sports betting company OpenBet from Scientific Games for $1.2 billion.
• It closed its reported $60 million acquisition of sports digital agency Mailman Group in July.
• It participated in Fanatics’ $350 million funding round in September.

The company is also reportedly teaming up with private equity firm Silver Lake to buy minor league baseball teams, and agreed to a deal with eBay last month to sell sports memorabilia.

Endeavor increased its full-year revenue guidance to between $4.89 and $4.95 billion.

On Holding is off to the races after posting its best quarter to date. 

The Roger Federer-backed running shoe brand recorded $235.2 million in net sales in the third quarter, a 68% year-over-year increase.

• Direct-to-consumer sales grew 93% year-over-year, accounting for $81.6 million of the total. Wholesale revenue grew 56.7% to $153.4 million.
• The brand showed strength in North America and Europe, which respectively comprised 51.5% and 40.5% of its total sales. 
• The company’s adjusted EBITDA was $40.8 million.

On went public in September, raising $746 million through an IPO, with an estimated market value of $7.3 billion. Its stock leapt over 20% on Tuesday, bringing it to more than 13% above its initial price.

Federer has been the face of the brand since investing an undisclosed amount in 2019. In addition to its shoe sales, On offers a shoe subscription for its Cyclon model, made from recyclable materials. 

The company acknowledged supply chain issues that are likely to affect its earnings in the near term, citing factory closures in Vietnam and higher shipping costs.