Risk Factors Update Summary

• We derive a substantial portion of our revenue from sales of our Connected Fitness Products. A decline in sales would negatively affect future revenue and operating results.
• In May 2024, we announced a new restructuring plan to expand upon the 2022 restructuring plan. This could impact our operational efficiency and brand reputation.
• Operating results and metrics may fluctuate quarter to quarter, making predictions difficult. This change might result in increased uncertainty for investors.
• We are subject to increased scrutiny regarding ESG practices, which could lead to higher compliance costs and reputational risks.
• We may also open additional production studios as we expand, which would require significant additional investment. This could affect our operating results and financial stability.
• The 2024 Restructuring Plan announced in February 2022 continues to impact operations and financial results. This may lead to significant cost savings.
• Our effective tax rate may be adversely impacted by global minimum tax legislation, creating uncertainty in financial projections.
• Our indebtedness increased to approximately $1.5 billion, which may limit our financial flexibility and operational capabilities.
• We have seen increased congestion and delays in global shipping, which may continue to impact our supply chain. This could lead to higher costs and inventory challenges.
• We may face challenges integrating Precor, which serves customers in 50 countries, exposing us to operational risks.
• The accounting method for the Notes could adversely affect financial reporting and investor perception.
• Additional measures have targeted forced labor concerns, potentially affecting our supply chain and compliance costs. This could result in reputational damage and operational disruptions.
• We may require additional capital to support business opportunities, potentially impacting future acquisitions and growth.