Peloton stated Thursday it expects its fiscal fourth-quarter sales to take a $165 million hit attributable to a treadmill recall.

It has halted sales of the machines globally and will be delaying an upcoming launch of its less-expensive treadmill in the United States until further notice.

Peloton additionally stated it expects to incur prices as a result of it’s providing clients full refunds and will additionally waive membership charges for all of its present treadmill clients for 3 months.

“Our aim is to have one of the best security options for treadmill merchandise in the marketplace,” Chief Executive John Foley stated throughout an earnings name. “There will be a short-term monetary influence as a result of steps we’re taking.”

The firm expects the mixed prices to cut back fourth-quarter adjusted EBITDA by about $16 million.

It has up to date its fiscal fourth-quarter sales outlook to be about $915 million. Analysts had been calling for $1.12 billion, in keeping with Refinitiv estimates.

Peloton shares have been up greater than 4% in after-hours buying and selling, as traders gathered extra readability on the health tools maker’s forecast.

Peloton now anticipates full-year income to be $Four billion, inclusive of the contributions from its recent Precor acquisition and taking into consideration the treadmill refunds and returns. Analysts had been searching for $4.1 billion.

A day earlier, Peloton issued a voluntary recall of all treadmills, after one little one died and dozens others have been injured in accidents involving its machines. The recall impacts about 125,000 Tread+ machines and roughly 1,050 Tread merchandise within the U.S.

“I feel the Tread will be coming again to market a lot earlier than the Tread+,” Foley stated Thursday.