Shares of Peloton Interactive, Inc. (PTON) soared 24.64% in pre-market trading on Thursday as the connected fitness company reported fiscal Q2 revenue that exceeded expectations and raised its profitability outlook for fiscal 2025.

For the quarter ended December 31, Peloton posted revenue of $673.9 million, down 9.4% year-over-year but beating analyst estimates of $652.7 million. The company cited strong demand for its premium-priced Tread and Tread+ products as a key driver behind the revenue beat, particularly during the critical holiday season that typically accounts for over 40% of annual hardware unit sales.

On the profitability front, Peloton reported adjusted EBITDA of $58.4 million for the quarter, significantly outperforming expectations as cost cuts and a subscription push paid off. Encouraged by these results, the company raised its fiscal 2025 adjusted EBITDA guidance range to $300 million to $350 million, up from its prior outlook of $240 million to $290 million.