Fellow Shareholders –
As the year comes to a close, we wanted to recap our operating and financial progress in 2024, and offer some callouts for 2025.
First, we’d like to reiterate TRNR’s fundamental equity-value proposition:
We have a value-based operating strategy, driven by disciplined acquisitions and an increasingly improving and efficient capital structure, applied to a large category that’s rich with targets.
So, when you own TRNR stock, you get positive exposure to catalysts like:
- Our market tailwind – for people worldwide, health & wellness is increasingly an “essential” spend.
- Our portfolio strategy – TRNR is building a collection of opportunities for its investors to benefit from macro trends, the diversity of which helps lower the risk of any one opportunity.
- Our M&A expertise – TRNR’s goal is to source and purchase high-potential businesses before their multiples expand, within our highly-fragmented sector.
- Our growth – the more we grow and the more valuable our shares become, the more capital efficient our acquisitions and portfolio strategy.
- Our assortment of equipment, services and brands – as the range of what we offer both consumers and businesses expands, so do the ways we can create shareholder value.
Understanding our growth strategy and decisions will help shareholders see the clear and exciting set of opportunities the same way we do.
So, let’s look back at the calendar year. In many ways, the story of 2024 is mostly the story of our CLMBR deal. Here’s what closing on CLMBR gave us the ability to accomplish:
- A worldwide distribution agreement with Woodway, a very established, and high quality partner for selling fitness equipment globally
- Gold’s, Crunch, Chuze and Armah gym-chain pilots/installations, giving TRNR gateways into over 1,000 gyms in the US and worldwide
- Additional distribution agreements and certifications enabling sales in the EU overall, and Germany, France, the Gulf region and Indonesia, heavily populated regions with thousands more gyms
- Initial orders and installations for over 1,000 CLMBR units – achieving a level of scaled order traction within months that CLMBR had never reached on its own
- Five major tradeshow exhibition opportunities
Alongside CLMBR, of course, we also:
- Expanded our FORME brand into new verticals like Golf, physical therapy, the military and college use-cases;
- Took significant steps to stabilize our listing and balance sheet; and
- Announced a letter of intent to acquire a scaled and profitable fitness & equipment business in early 2025.
As we have noted before, CLMBR turned out to be more an acquisition of assets, vs. us buying a fully-functioning business.
But those assets, plus our operating and financial experience, let TRNR build out a true international B2B sales and distribution footprint around that brand. It also let us expand to a multiple of our previous quarterly revenues.
This is the power of the M&A portfolio approach, combined with our financial and operating expertise:
- We found a set of under-commercialized assets;
- invested some time and money in up-leveling it; and then
- took it national, as well as international, giving us a set of channels and relationships we can also leverage for other brands and equipment in the future.
With this progress in mind, and with the proof that our operating strategy – leveraging M&A and our listing to build revenues and value – works even for a collection of assets vs. a scaled business, let’s turn to the coming year.
Here’s how we look at 2025 priorities:
- First, we’re laser focused on moving ahead with the potential acquisition anchored by the LOI. The next step is a definitive agreement to acquire that business.
- We’ll continue to market, distribute, install and sell both CLMBR and FORME to businesses and consumers worldwide continuing on the path we have demonstrated in Q3 and guided in Q4
- We also expect to further strengthen our balance sheet to reinforce our ability to execute scaled M&A more opportunistically.
- We are already discussing additional, scaled acquisitions beyond the announced LOI, and will continue to identify and conduct due diligence on such opportunities.
- We’ll also continue to ramp up and improve our direct communications with all of our shareholders – everyone should sign up for direct emails from us; contact us; and visit not just our news page, but also our new Insights page – where we’ll offer commentary on both TRNR and our markets.
We want our shareholders to fully understand:
Every time we announce a pilot, install equipment, sign a distribution deal; enter a new market and of course acquire a business – WE ARE IMPROVING YOUR EXPOSURE TO THE HUGE HEALTH & WELLNESS MARKET through an attractive and diversified strategy.
We hope you all have a happy holiday season and New Year’s celebration – and look forward to sharing additional progress and catalyst events in the coming year!