02:57 PM EST, 02/06/2025 (MT Newswires) -- Shares of Peloton Interactive ( PTON ) climbed intraday Thursday after the fitness company raised the midpoint of its fiscal 2025 revenue guidance and reported better-than-expected sales for the December quarter.

The company upped the midpoint of its full-year top-line outlook by $5 million to reflect a new range of $2.43 billion to $2.48 billion. Analysts polled by FactSet are modeling for revenue of $2.47 billion in the ongoing year. The company reported sales of $2.7 billion for fiscal 2024.

Shares of Peloton gained 8.3% in afternoon trade.

The upgraded view reflects favorable subscription and treadmill revenue that is expected to be partially offset by lower bike sales, Peloton said in a shareholder letter. Management now expects paid connected fitness subscriptions between 2.75 million and 2.79 million, upping its midpoint by 55,000 but still down roughly 7% year over year at the midpoint.

"The Peloton team has made impressive progress over the last few quarters in putting the company on sound financial footing," Chief Executive Peter Stern told analysts on a conference call, according to a FactSet transcript. "Nonetheless, we have a tall hill to climb before we can demonstrate the impact of that virtuous cycle on member and revenue growth."

Truist Securities said in a note that Peloton continues to make progress on its turnaround efforts, though business growth is not expected until fiscal 2026 as the demand environment remains tough.

For the fiscal second quarter, Peloton's revenue declined 9% annually to $673.9 million, but surpassed the FactSet consensus of $652.7 million. Connected fitness products revenue fell 21%, while subscription revenue edged down 1%.

The fitness equipment maker narrowed its quarterly loss to $0.24 for the three months ended Dec. 31 from $0.54 the year earlier, compared with the Street's expectation for a $0.20 loss.

For the third quarter, Peloton expects revenue to fall 14% year over year at the midpoint of its $605 million to $625 million guidance range. Analysts are projecting revenue of $647.7 million. The company forecast connected fitness subscriptions to be down 6%.

Price: 8.27, Change: +0.69, Percent Change: +9.04