Revenue totaled $559 million, exceeding the $553 million expected by analysts polled by FactSet. Subscription revenue reached $410.7 million, just below the $412 million forecast. The gains came as the company’s paid fitness subscriber base fell 9% from a year earlier to 2.475 million. Total members declined to 5.3 million.

Chief Executive Peter Stern said Peloton remains focused on finding new areas of growth and pursuing its multiyear transformation. He cited technology improvements and more personalized digital training through Peloton IQ. The company also credited tighter spending and a streamlined supply chain with helping its quarterly results. Free cash flow as of Sept. 30 was $143.4 million.

For the second quarter, Peloton expects revenue of $625 million to $650 million and paid connected fitness subscriptions of 2.425 million to 2.445 million. Its full-year revenue outlook is $2.3 billion to $2.4 billion.