(Reuters) -Fitness company Peloton Interactive ( PTON ) raised its 2025 revenue forecast on Thursday, banking on an increase in subscriptions for its instructional videos to offset slowing demand for its exercise equipment.

Peloton, which makes equipment such as spin bikes and treadmills, has been pivoting away from hardware to transition into a software-first company.

Its turnaround strategy involves pushing subscriber growth for live and on-demand workout content to accompany its products. It has also focused on boosting its B2B portfolio by attracting more corporate wellness clients to offer the fitness company's products and services at workplaces.

This quarter marks the first earnings result with new CEO Peter Stern at the helm. Stern, who was previously responsible for Ford's subscription-led digital services business as well as Apple's ( AAPL ) Sports and Fitness+ segments, has been tasked with making the shift at Peloton.

The company now expects 2025 revenue to be between $2.46 billion and $2.47 billion, reflecting an increase of $7.5 million at the midpoint of its previous forecast range.

It also increased the lower end of its full-year forecast for connected fitness subscriptions to 2.77 to 2.79 million, from 2.75 million previously. However, this still reflects a year-over-year fall of 7%.

It expects 2025 adjusted core profit in a $330 million to $350 million range, compared to an earlier forecast of $300 million to $350 million.

For the third quarter ended March 31, the company reported a loss per share of 12 cents, smaller than a loss of 45 cents last year.

It reported revenue of $624 million, down 13% but higher than Street estimates of $621.3 million, according to data compiled by LSEG.