May 8 (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.