Feb 5 (Reuters) - Peloton Interactive ( PTON ) forecast third-quarter revenue below Wall Street estimates on Thursday, pointing to weak demand for its fitness equipment, with shares plunging about 25% to ‌their lowest level in about a year and a half.

The ​New York-based maker of exercise bikes and treadmills ‍projected third-quarter revenue of between $605 million ⁠and $625 million, ⁠below analysts' average estimate of $638.4 million, according to data compiled by ‌LSEG.

Peloton has struggled with ​softer equipment sales even as it pushes ahead with cost-cutting measures.

In January, the ⁠company said it cut ‍11% ​of its workforce as part of a broader turnaround under CEO Peter Stern, who has revamped ‍the product lineup and raised prices for both equipment and subscriptions since taking the helm.

Demand for discretionary items has been under pressure as persistently high prices weigh on U.S. consumers; ​consumer ‍confidence fell to its lowest level in more than 11-1/2 years in January, data ​showed.

The at-home exercise equipment maker reported a wider-than-expected second-quarter loss of 9 cents per share, compared with analysts' expectations for a 6-cent loss.

Revenue for the quarter ended December 31 came in at $656.5 million, missing analysts' estimates ​of $674.3 million.

The company's shares, which fell 29.2% in 2025, have declined 25.8% so far in 2026 including session losses.