FAQ
Latest Questions (Updated May 21, 2025)
What’s the latest on a potential reverse split?
As we noted on the morning of May 19, we have not made any public filings or announcements about a reverse split. We have no plans to pursue a reverse stock split in the foreseeable future. Our focus is on driving long-term shareholder value through continued revenue growth, operational execution, and integration of recent acquisitions. We understand that reverse splits can raise questions among investors, and so we want to be clear that this is not under consideration at this time - nor is it an option that we desire.What is TRNR doing about the continued short selling pressure on its stock?
We remain aware of what appears to be persistent short selling pressure and the concerns it raises among our shareholders. While short interest is a feature of public markets, we take any indications of potential market manipulation seriously. We are actively monitoring trading activity, staying in close communication with regulators, and evaluating all available options to protect our investors and ensure a fair and orderly market. We are also encouraged by recent signs that ongoing positive business updates — including strong performance from our acquired businesses — are being reflected in improved support for the stock.When is TRNR’s Annual Meeting, and what should shareholders expect?
Our Annual Meeting is expected to be at the end of June, and we expect to file our proxy statement in the near future. The proxy is expected to include some approvals for the pending acquisitions of Sportstech and Wattbike, among other matters. We encourage all shareholders to review the materials once they are available and to participate in the meeting.--
(Updated May 19, 2025)
In April, you raised 2025 pro forma revenue guidance from more than $50M to more than $65M; now you have increased it to more than $75M a month later. Does that mean you underpromised before?
No, the increase in 2025 pro forma revenue guidance in April from $50M to $65M was primarily due to announcing the pending acquisition of Wattbike, and knowing what their revenues are expected to be. However, since we originally guided to more than $50M in February when announcing the Sportstech acquisition, Sportstech in particular has performed above expectations in the subsequent months. So, it’s both transparent and prudent for us to increase guidance to reflect the stronger-than-anticipated performance. The new guidance is a sign of positive momentum, and a key indicator about the growth of the business.What does 'pro forma' mean?
“Pro forma” means a financial metric that includes future changes — in this case, revenue from companies TRNR is in the process of acquiring (Sportstech and Wattbike). These numbers help show what the full picture will look like once the deals are officially completed. Specifically, when we use pro forma, it means that the number we are discussing is recalculated to include the performance of Sportstech and Wattbike as if they had been consolidated into our financials on January 1, as opposed to from the date when we close the transactions.Why is Sportstech such a big deal for TRNR and why all the recent Sportstech focus if the deal hasn’t even closed yet?
We expect that the Sportstech transaction will close in the near-term and it will become TRNR’s largest business, so we are rightfully sharing as much about it as we are able to. As a reminder, they are a profitable, fast-growing fitness equipment company based in Germany. Unlike many startups, they didn’t raise outside capital — they’ve grown through disciplined execution.They also bring cutting-edge technology like AI-guided workouts and blockchain-based fitness rewards. TRNR sees Sportstech as a game-changer, especially as the two companies integrate and expand into the US together. Recently, the company disclosed how it performed in Q1 - and we thought that was very useful and relevant information for our investors, given that we expect Sporstech will soon become part of TRNR. So we wanted to make sure everyone could see for themselves just how good a business it is and how well it is performing.
When will the Sportstech acquisition close?
We are working as quickly as we can to finalize the transaction and we have very high confidence that it will close successfully. While we control many aspects of the deal process, this is a cross-border acquisition and is still subject to regulatory and tax approvals in multiple jurisdictions. As such, the timeline is not entirely within our control, but investors should not assume a longer timeline implies a risk that it will not close successfully. We have been consistently communicating that we expect to close the acquisition as early as Q2 2025, which could mean in June, or it could also mean later in the summer as we move into Q3.Why does TRNR mention blockchain and AI so much in the recent CEO QA? Isn’t this just a fitness company and those are buzzwords?
Blockchain isn’t just about crypto. Sportstech has been actively investigating the use of it to motivate users — think 'move to earn' or 'play to earn' rewards that are tracked and delivered securely. For example, if you complete a workout streak, you might earn a digital token. It's a way to keep people engaged and consistent in their fitness goals. Blockchain is also essentially software - and is a very good bridge also for allowing us to use AI for fitness and training as well. While it is early, there appears to be some interesting applications for the technology that could accelerate our growth.What’s going on with the company’s crypto strategy that was mentioned in December 2024?
TRNR is exploring two main use cases for crypto: 1) As a treasury asset (for example, holding Bitcoin as part of reserves); and 2) as a utility in AI applications or by using it to distribute incentives like tokens for workouts potentially. This second part is directly tied to our products and motivating customers and building an ecosystem around training.What does it mean to hold crypto as a treasury reserve asset — I've seen other companies announce they are buying crypto and their stocks go up; is that what you are talking about?
Yes, there seems to be a lot of activity in the space. Holding crypto as a treasury reserve asset means the company allocates some of its cash into cryptocurrency, like Bitcoin, as a long-term store of value. Some investors see this as a hedge against inflation or traditional financial market instability. TRNR has expressed interest in this, and is also actively learning more about cryptocurrencies particularly as part of its broader innovation strategy — but it’s one part of a much bigger picture that includes fitness, tech, and growth.--
Forward Looking Statements:
These FAQs include certain statements that are “forward-looking statements” for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements do not relate strictly to historical or current facts and reflect management’s assumptions, views, plans, objectives and projections about the future. Forward-looking statements generally are accompanied by words such as “believe”, “project”, “expect”, “anticipate”, “estimate”, “intend”, “strategy”, “future”, “opportunity”, “plan”, “may”, “should”, “will”, “would”, “will be”, “will continue”, “will likely result” or similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the possibility of acquiring future businesses or completing the referenced pending transactions in a timely manner or at all, the financial performance of those acquisitions and the resulting guidance of having more than $75m of pro forma revenue in 2025, achieving profitability by Q4, and the financial performance of the acquisition targets which have not been audited or reviewed by a PCAOB auditor and could vary materially (a) once that audit or review work is completed and such financials are included in the Company’s reported financials and (b) due to the effect of the exchange rates of foreign currencies which can be volatile. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of the Company. Risks and uncertainties include but are not limited to: demand for our products; competition, including technological advances made by and new products released by our competitors; our ability to accurately forecast consumer demand for our products and adequately maintain our inventory; and our reliance on a limited number of suppliers and distributors for our products. A further list and descriptions of these risks, uncertainties and other factors can be found in filings with the Securities and Exchange Commission. To the extent permitted under applicable law, the Company assumes no obligation to update any forward-looking statements.
Sportstech Acquisition (Updated May 8, 2025)
Sportstech released some financial metrics on May 7; were they better or worse than expected?
Sportstech reported approximately $54M in revenue for the last twelve months (“LTM”) through April 2025 and approximately $5m of EBITDA. They actually reported that their LTM revenue “surpasses €47M with approximately €5M in EBITDA” and we converted this to USD at the current FX rate of 1.13 USD/EUR.These figures are better than we expected and we have been impressed by the performance of Sportstech since we signed our Binding Transaction Agreement in early February. As you can see in our investor presentation, Sportstech has an EBITDA earn-out for the period from April 2025 to March 2026 that ranges from €5.5M to €10.5M ($6.2M to $11.9M), and they are already performing at about the low-end of the range a year in advance, so we have high expectations that they could reach the upper end of that earn-out based on expected growth. Achieving the upper end also would imply that we would be profitable on the group level assuming TRNR’s 2024 adjusted EBITDA was maintained, but we believe we will do better than that.
Sportstech said that April revenues alone were up 36% year-over-year, and YTD (January to April) revenues grew 8% compared to the same period last year. They highlighted that the 8% was lower than they think it should have been because of being out of stock of many items and that the 36% in April is more what they expect for the remainder of the year. That would be incredible and we expect it would make the deal a huge success. These results reinforce our confidence in Sportstech’s operational excellence and momentum heading into the closing of the deal.
Why did Sportstech’s revenue growth accelerate in April versus YTD?
Sportstech’s Q1 revenue was somewhat constrained by low inventory levels, meaning they had a lot of sold out items, i.e. demand that could not be fulfilled. Those challenges have been addressed, and April showed a major rebound with 36% year-over-year revenue growth. The company expects full-year 2025 revenue growth to track closer to the April growth rate than the more modest Q1 pace.Does the recent shareholder update change TRNR’s guidance or strategy?
No change to our broader strategy, but the strong April and LTM performance of Sportstech gives us even greater confidence in our combined trajectory. It also underscores our belief that the $65M+ pro forma revenue projection for 2025 is realistic and may prove conservative if current momentum continues given Sportstech is at $54M over the past twelve months and is expected to continue to grow and there is Wattbike, CLMBR and FORME to add to that figure.When will the Sportstech acquisition close?
We are working as quickly as we can to finalize the transaction and we have very high confidence that it will close successfully. While we control many aspects of the deal process, this is a cross-border acquisition and is still subject to regulatory and tax approvals in multiple jurisdictions. As such, the timeline is not entirely within our control, but investors should not assume a longer timeline implies a risk that it will not close successfully. We have been consistently communicating that we expect to close the acquisition as early as Q2 2025, which could mean in June, or it could also mean later in the summer as we move into Q3.Will Sportstech's financials be consolidated into TRNR's reported results?
Once the transaction is closed, we expect to fully consolidate Sportstech’s financials into our own reporting. This is expected to significantly expand our revenue base, add profitable operations, and enhance our international footprint. Their revenue and earnings will be reported in our 10-Q’s and 10-K’s.TRNR is a US business, so why are FX rates being mentioned with the Sportstech financial reporting?
Sportstech’s revenues are in Euros and so is their financial reporting, but TRNR has translated the Sportstech results (“€47M revenue, with approximately €5M in EBITDA”) using current FX rates, which indicates that approximately $54M in LTM revenue and $5M in EBITDA through April 2025 would be reported in TRNR’s financials. While FX rates can fluctuate, we believe the strong underlying performance provides a consistent foundation for growth and should be exciting for TRNR regardless of currency movements.How does Sportstech fit into TRNR’s broader business strategy?
The acquisition expands TRNR’s geographic and product diversification. Sportstech’s hardware strength complements TRNR’s digital and connected fitness ecosystem. Together with Wattbike, another pending acquisition, we expect to operate at greater scale and with broader reach across commercial, consumer, and digital fitness channels.Why is TRNR leadership traveling to China with Sportstech’s CEO?
As part of our integration planning, TRNR leadership is accompanying Sportstech’s CEO on a supplier-planning trip to China during May. This is intended to enhance procurement leverage, secure favorable terms, and prepare for future joint manufacturing and logistics coordination across the enlarged platform. They are also attending the China Sport Show together to investigate other suppliers and products.What should shareholders expect in terms of next updates?
We expect to provide further financial updates around our Q1 earnings in late May, and we will consistently update investors about the expected closings of the Sportstech and Wattbike transactions when we are able to. You can always find the latest investor materials, including updates and filings, on our Investor Relations website and should sign up for email alerts so you are notified right away when we post items.Why does the stock keep trading down on what seems like good news? What is TRNR doing about this?
We continue to think that the market undervalues TRNR’s operational performance, pending deals and growth potential. We understand many shareholders believe - and are highly focused on trading patterns that suggest - that short-selling campaigns target the company. As we’ve stated before, we’re in close touch with both the exchange and our regulators. However, we ourselves are laser focused on operating the company to lock in scale, revenues and growth - and in the short term that means we are committed to closing our pending transactions, expanding our supplier and distribution relationships, and selling equipment and connected fitness content to businesses and consumers. These are the strongest, most productive and most cost-efficient levers we have to support a higher valuation. We have high conviction that our efforts on all of these fronts will succeed, and a significant amount of progress even just YTD in support of our belief. We’re confident that the market will, eventually, catch up to the facts of our transformation, and price the stock more appropriately.However, we are developing strategies around how to counteract any potential manipulation or illegal activity, which we believe will be more impactful than solely writing letters to regulators who may or may not act. We have heard from many shareholders about the need to fight and we are, even if it is not in a public venue. We know how important this is to our future success.
What is Sportstech/what does it do?
Sportstech - the largest connected fitness and equipment company in Germany - is a profitable, $40M+ revenue business based in Berlin that serves customers in the DACH region (Germany, Austria and Switzerland), France and Spain.It offers customers unique fitness equipment and app-based fitness content that’s designed to fit in with busy lifestyles and motivate anyone to achieve a healthier, more active lifestyle. Founded by CEO Ali Ahmad in 2012, as an outgrowth of his own personal journey to a happier, fitter and healthier life, Sportstech offers a uniquely successful combination of technology, branded equipment and training-oriented community in the health and wellness space.
What are the terms of the deal?
You can read in detail about the deal terms in the filings or our press release here. We’re buying Sportstech with stock, not cash or debt. The initial payment for the company is $15M worth of shares, which are locked-up until at least June 2026. TRNR could pay up to $40M more in stock over the next two years - but ONLY if Sportstech meets specific EBITDA targets in 2026 and 2027, and the price we are paying as a multiple of earnings decreases as more earnings are generated.So this is a very capital efficient deal, in keeping with our strategy for acquiring profitable revenues from subscale businesses. Also worth noting: Sportstech’s founder and owner, Ali Ahmad, is converting his entire stake in his company to TRNR equity, joining our Board and becoming a long-term shareholder, with significant lock-ups on his equity. The earliest that a share could be sold is June 2026, but there are restrictions on how much an affiliate can sell at once so we do not expect much equity to be sold in the future.
Why is this a good deal for TRNR shareholders?
It’s a big milestone for a lot of reasons - but one of the most obvious is that it will dramatically grow TRNR revenues and profit. By the end of 2025, we expect to have over $50M in revenue, on a pro forma basis. That’s a huge step change, YOY. It’s literally transformative, because Sportstech has achieved a different level of scale, operations and profitability in large markets TRNR was just starting to enter.Last year it produced more than $40M in profitable revenue, and it’s grown by double digits annually since 2016. So while we and Ali believe we can expand further, together, the deal is accretive to TRNR immediately. Longer term, and bigger picture, this is good for our investors because it diversifies our business, both in terms of geography and in terms of products and customers. It adds experienced talent to our team. It pushes us deeper into the German fitness market, the second largest in the world.
Why buy a German company? TRNR is listed and based in the US.
Sportstech and its German base actually fit our strategy very well. TRNR has operated internationally for over a year, and the fitness, health & wellness market globally has even more growth potential than the US on its own.The mutual opportunity was huge - because TRNR’s NASDAQ listing and global footprint in the US and outside the EU offer Sportstech a much faster, more capital-efficient path to grow than it could achieve on its own. Remember, we’ve been selling into Germany since early 2024, so when we saw what Ali and Sportstech had achieved there, in the larger DACH region, and in France and Spain, their value was crystal clear. Really, the industrial logic of the deal couldn’t be better - it’s a win-win, especially for TRNR shareholders.
When are TRNR shareholders going to start seeing Sportstech results in earnings reports?
We expect the deal to close as early as April 2025, which would be the first time that the Sportstech revenue and earnings will be consolidated into our reporting. So we expect a partial, positive impact on TRNR results in Q2 ‘25, which are expected to be reported in August 2025. The first full quarter with Sportstech should be Q3 ‘25.The important callout right now is that we’re projecting over $50M in revenue for full-year 2025 on a pro forma basis, driven by Sportstech’s current performance.
Why did Sportstech sell, if it’s doing so well and never had to raise money?
TRNR’s NASDAQ listing and global footprint in the US and outside the EU offer Sportstech a much faster, more capital-efficient path to grow than it could achieve on its own. It’s important to realize that Sportstech's sole shareholder is rolling all of his equity into TRNR stock, so he is very aligned with growth in TRNR’s share price.As with many successful, growing businesses there’s a big difference between continuing to grow independently, and then being given the resources, expertise and network that make it easier and more cost-effective to accelerate expansion plans, while still maintaining customer and product quality.
Isn’t an all-stock deal just going to dilute TRNR common shareholders further?
If the acquisition had been structured with cash, it is likely that there would have been a fundraise required that would have been more dilutive. The use of our stock as the currency means that there will be no additional shares in the market for more than 12 months and it aligns the Sportstech shareholder with TRNR shareholders. We believe the value received from Sportstech’s revenue and earnings more than offsets the reduction in ownership percentage of existing TRNR shareholders. So, very much a situation of owning a smaller piece of a much bigger pie.While the all-stock deal structure may shrink the percentage ownership basis of a given TRNR shareholder, the value of the huge uptick in revenue, profit, and scaled operations we are buying more than makes up for it. The charts in this deck on slide 8 illustrates the value creation.
Why isn’t the stock going up if this is such a great deal?
Like any public company, we can’t speculate about our stock price. With that said, we can appreciate that the market may not understand or give the Company credit for the transaction that was announced. We believe that that view will change when we are able to share more about the performance of Sportstech and investors are able to see the Sportstech results in TRNR’s reported financials.We can also appreciate the onus is on management to show the value of Sportstech given the previous acquisition (CLMBR) underperformed expectations.
You set big expectations for CLMBR that didn’t pan out; why is Sportstech different?
There are large differences between Sporstech and CLMBR. CLMBR was a purchase of assets as opposed to a fully-functional business. Sportstech is a different beast entirely - it has operated for over a decade, is self-funding, profitable and did over $40M in revenue in 2024, having served more than 3 million customers to date.Also, it’s good to remember that due to our earnout-transaction formula, we ended up not paying anything material above liabilities when buying CLMBR and those assets ultimately allowed us to expand customers and distribution internationally. We’re applying the same performance-oriented formula to Sportstech, with the key difference being the proven scale and performance of Sportstech’s existing business. The bottom line is that we do not believe we overpaid for CLMBR despite its underperformance, and over 70% of the maximum price of the Sportstech deal depends on it continuing to surpass clear and specific earnings targets.
Is Sportstech going to open facilities and offices in the US? Where/when?
We expect to open a small sales office in the US in the next year to focus on developing the market for Sportstech, and we will also consolidate some of our other operations there.They’ve got an app and fitness/training content production that can easily adapt to the North American market - ditto their equipment, especially combined with TRNR’s distribution expertise. We expect the deal to close in April 2025 - and after that we can go to market together formally. We can be more specific about plans and timing after that point.
Will TRNR management start running Sportstech?
The Board and management of TRNR will be responsible for budgeting and major decisions, but the execution on a daily basis will be done by the existing Sportstech management team. So, Sportstech will draw on our resources, connections and expertise. But our plan is that day-to-day, their team and company will operate and go to market independently and under their own brand.This is consistent with how, over time, we will manage FORME and CLMBR - and how we intend to operate future acquisitions.
Will Sportstech start selling FORME and CLMBR equipment? Why/why not? When?
We expect the Sportstech deal to close as early as April 2025 - and after that we can go to market together formally. We can be more specific about plans and timing after that point.What we can say right now is that one of the big reasons this deal makes sense is that the companies’ businesses are complementary. So, yes, in theory, we can cross sell equipment and fitness content.
Wattbike Acquisition
What is Wattbike/what does it do?
Wattbike is a $15M-plus revenue, pioneering indoor training bike business founded in 2008 to support Team GB, the UK’s Olympic team. Since launch, its performance bikes and training programs have earned a worldwide reputation among elite athletes, gyms and sports franchises due to their precision, reliability, measurement and quality.Wattbike’s indoor cycling training platform is arguably the best in the world of its kind for performance training, testing and benchmarking, rehab, injury prevention and low-impact conditioning. Leading gyms, healthcare facilities, universities, and even special forces military operations recognize this - along with every NHL team and many in the NFL, NBA, MLB and the Premier League.
Having sold more than 100,000 bikes since its founding, Wattbike over the past two years has expanded its portfolio and offerings, and now provides customers worldwide a range of equipment and training for both commercial and consumer uses.
What are the terms of the deal?
You can read in detail about the deal terms in the filings or our press release. TRNR is buying Wattbike with stock, not cash or debt, in a transaction that’s performance-driven with up to 60% of the total consideration being contingent on Wattbike future results.This is consistent with TRNR’s long-stated M&A strategy; incentivizes TRNR and Wattbike to succeed, aligns with shareholder interests and should ensure an attractive acquisition multiple of earnings. Also worth noting: Wattbike’s shareholders will be locked up until at least June 2026 - and there is no cash consideration being paid to those investors.
Why is this a good deal?
The binding agreement is a significant milestone for both growth businesses. First, of course, the transaction is expected to help TRNR generate more than $65M in pro forma 2025 revenue. This is a step-change for each company, and will give the combined business a critical new level of scale across many different lines of equipment, geographies, platforms and apps.In sum, the deal forms a unique, omni-channel, fitness-equipment portfolio with key operations in each of the world’s three largest fitness markets - the US, Germany and the UK - which also has a stellar global reputation among elite athletes and professional sports teams, health and medical professionals and top gyms. The deal is expected to close as early as the second quarter and is expected to be immediately accretive to TRNR’s results - much like TRNR’s previously announced acquisition of Germany’s largest connected fitness business, Sportstech.
Why buy a UK company? TRNR is listed and based in the US.
Wattbike and its UK base actually complement TRNR’s operations well - including those of its recently-announced, Germany-based Sportstech acquisition. The reality is that both Wattbike and TRNR operate internationally already, and the transaction will accelerate each company’s ability to continue to push into key markets, especially the US, Germany, the UK, Asia and the Middle East.More specifically, the tie-up of Interactive Strength and Wattbike will create significant operating synergies, leveraging shared international distributors such as WOODWAY in the US and Germany and MeFit Pro in the Middle East. Both companies have strong commercial partnerships with leading gym operators and direct-to-consumer (DTC) sales—Wattbike predominantly in the UK and TRNR in the US. TRNR’s planned acquisition of Sportstech also strengthens its presence in Germany, supporting Wattbike’s projected growth in the priority US and German export markets. Additionally, Interactive Strength’s Quality and Supply team in Taiwan works closely with Wattbike’s long-standing manufacturing partner, Giant/AIPS, ensuring a seamless integration and continued commitment to product excellence.
Overall, the industrial logic behind the deal is very strong, and takes place against a backdrop of continued growth in the global health and wellness market overall.
When are shareholders going to start seeing Wattbike results in earnings reports?
The deal is expected to close as early as the second quarter and to be immediately accretive to TRNR’s results. So we expect a partial, positive impact on TRNR’s Q2 results - expected to be reported in August 2025. The first full quarter with Wattbike, however, is expected to be Q3 2025, which would be reported later in November 2025.The important callout right now is that TRNR’s projecting over $65M in pro forma 2025 revenue, when Wattbike’s current performance as well as Sportstech’s results are fully included with TRNR’s own.
Why did Wattbike sell?
This deal is driven by the advantages that scale and synergies will give the two.Isn’t an all-stock deal just going to dilute TRNR common shareholders further?
The important point here is TRNR’s capital-efficient acquisition formula, which focuses on deals whose price is driven by performance, vs. cash consideration.If the acquisition had been structured with cash, it is likely that there would have been a fundraise required that would have been more dilutive. The use of our stock as the currency means that there will not be additional shares in the market for more than a year - and it means that Wattbike and TRNR shareholders are aligned.
We believe the value received from Wattbike’s revenue more than offsets the reduction in ownership percentage of existing TRNR shareholders. While the all-stock deal structure may shrink the percentage ownership basis of a given TRNR shareholder, the value of the uptick in revenue and scaled operations is expected to more than make up for it.
So, as with the Sportstech deal, this transaction should be viewed as providing TRNR shareholders with a more valuable piece of a much bigger pie.
What’s next for TRNR? More deals, or building out what you have?
Both. TRNR’s vision is building a portfolio of businesses that can capture value across different segments and geographies in health & wellness and drive significant multiple expansion for shareholders. Wattbike is large enough that our combined organic opportunity set is attractive, but also provides enough scale that we can acquire future businesses with larger synergies.Going forward, we’ll continue to execute by both operating what we buy, well - and by strategically acquiring additional growth businesses on a low-cost, low-risk basis.
How will all the tariffs impact this deal and the combined business - especially with all TRNR’s and Wattbike’s stated plans to expand across borders, e.g., sell more in the US?
TRNR and Wattbike management teams - like most businesses worldwide - are monitoring and adapting to all the shifts in international trade. There’s plenty of change and uncertainty. That said, what’s also true is that more than 75% of the combined company’s 2024 revenues are outside the US - insulating the business from US-specific protectionism to a degree and for a fair amount of time. And we also have US-based inventory for FORME/CLMBR that will fulfill 2025 revenue projections. Finally, the other reality is that a lot of business across both TRNR and Wattbike is B2B sales, which are more resilient in terms of tariff-driven price sensitivity than individual consumer purchases. Taken together, all these factors at minimum mean that we don’t expect our operations to be severely impacted by trade considerations in the near future.businesses in terms of accelerating what they already each were doing.For TRNR, Wattbike adds a truly marquee brand and set of products to its performance-focused portfolio. Wattbike’s indoor cycling training platform is arguably the best in the world - leading gyms, healthcare facilities, universities, and even special forces military operations - along with every NHL team and many teams in the NFL, NBA, MLB and the Premier League - all use Wattbikes.
For Wattbike, the deal gives its latest product launches and renewed growth a larger platform for marketing and distribution that will dramatically and cost-effectively speed up expansion across key international markets, while staying true to Wattbike’s commitment to deliver world-class training solutions for athletes and fitness enthusiasts alike.
Interactive Strength Inc.
How can you possibly project $50M in pro forma revenues for 2025, when your 2024 revenues are only expected to be $5M? Seems like “pro forma” = “junk projections.”
While $50M for 2025 pro forma revenues can seem improbable when compared to $5M for 2024 revenue (9M YTD ‘24 of $3M reported revenue plus guidance for Q4 ‘24 of $2M), the increase in revenue to $50M is largely as a result of Sportstech, the company we agreed to acquire, which had over $40M in revenue in 2024 and we expect it to surpass that level in 2025.As page 8 of our investor presentation shows, the step-up is big - but it is high likelihood given the scale of the Sportstech revenue that will begin to be included in TRNR’s financials after the transaction legally completes, which we expect to be as early as April 2025. “Pro forma” describes what the revenue would be for the full year 2025 if Sportstech had been a part of TRNR from January 1 to provide context for shareholders of the impact of the Sportstech acquisition.
What are you doing to counter market manipulation like naked short selling? The trading volumes in TRNR stock can’t be real as it’s many multiples of the free-trading float.
Today is the third day during February when more than 50 million shares have traded in a day. This just highlights the many other times in the recent past when every share outstanding appears to have been traded more than 10 times in a single day. We have heard from many of our shareholders that they believe that this trading dynamic reflects an illegal “naked short.” If correct, this would harm all of us and our interests, as defending the share price is critical to our long-term plans. We have not been able to explain this volume and we are investigating the possible reasons for it, which include speaking with the Nasdaq Market Intelligence desk and possibly the Securities and Exchange Commission (SEC).That being said, we are aware that TRNR has a low number of shares outstanding. A rush of buying, such as in response to the very positive Sportstech news, could move the share price up dramatically and attract traders with short time horizons. Beyond our investigating naked shorts, we are growing revenue through acquisitions and we are also spending a lot of time communicating the long-term value we expect to create so that we can attract more owners of TRNR to combat any short-sellers.
If you have enough cash to buy a German company, why don’t you buy back the stock instead of posting FAQs?
We are acquiring Sportstech with equity, not cash. This means that the shareholder of Sportstech is investing 100% of his ownership in shares of TRNR that are locked up for years. In fact, the correct way to think about our deal is that we have recruited a very large investor to TRNR who didn’t just buy shares in the company with cash, one time - but, instead, has purchased his shares with a successful business that’s been operating for years and that is expected to generate revenues for TRNR every year, which is the foundation for the $50M pro forma 2025 revenue. On top of this investment and its clear value to all stockholders, he is restricted from selling his shares.We plan to reinvest [that cash - what cash? From operation into our operations and make them more valuable. As shareholders start to understand the value of our acquisition and operating strategy - see slide 10 of our investor deck - we think our multiple will improve significantly. We’re already showing progress.
What happened to Bitcoin as a treasury asset? Are you going to move forward with holding cash in some kind of crypto?
Especially as we scale and begin to generate free cash, we are very interested in this path - and that’s why the Board approved Bitcoin as a treasury asset. Our operating business is in the megatrend of health and wellness, but we are focused on creating shareholder value in many ways.What is Interactive Strength’s business and how did it get started?
Interactive Strength Inc. (NASDAQ: TRNR) is the parent company of three leading brands serving the commercial and at-home markets with specialty fitness equipment and virtual training: CLMBR, FORME and FORME GOLF.Most recently, TRNR has announced a binding agreement to acquire Sportstech, Germany’s largest connected fitness and equipment business.
CLMBR manufactures vertical climbing equipment and provides a unique digital and on-demand training platform. FORME is a hardware manufacturer and digital fitness service that combines award-winning smart home gyms with 1:1 personal training (from real humans) to deliver an immersive experience and better outcomes for both consumers and trainers. FORME GOLF combines the FORME Lift hardware with golf specific training delivered by Titleist Performance Institute certified trainers.
Who are its major customers? What about competitors?
Customers include gyms such as Crunch Fitness, Gold’s Gym, Chuze Fitness and Equinox, and hotels like the Four Seasons and Marriott and international distributors from countries like Germany, France, UAE, Indonesia and others. Our planned acquisition target, Sportstech, has sold products to more than 3 million consumers since it was founded in 2012.We compete in a large, global fitness and equipment market that’s growing but also very fragmented - and which includes many, many companies and brands ranging from Technogym and Precor to Peloton, Nautilus and Stairmaster.
How long has TRNR been public?
TRNR listed on the NASDAQ in 2023 with only the FORME business.Where are your offices located?
We are based in Austin, Texas and have an office in Taiwan.Do you make your own equipment?
We rely on joint-development or contract manufacturers to produce the equipment and we use distribution partners to sell, providing us with an asset-light approach to making and selling our equipment.Who’s on the management team? What is their experience?
We have an experienced management team anchored by Founder and CEO Trent Ward, Chief Technology Officer Deepak Mulchandani and CFO Michael J. Madigan. You can read more about their credentials and expertise on our website.Stock/financials
I’ve heard TRNR’s CEO, Trent Ward, has a $20 million salary. The company can’t pay that from operations, so are shareholders being diluted by capital raising to fund this?
There seems to be some confusion and misreading about the TRNR CEO compensation of $20M from the 10-K. We’d like to clear it up, because it is fantastically wrong. TRNR’s CEO did not - and does not - get paid $20M. The CEO salary has been flat for the past 2 years, averaging just under $300K in 2023 and 2024. So, what’s the $20M? It’s a non-cash number that frankly has very little to do with reality and is an accounting treatment tied to the issuance of stock options more than two years ago and pre-IPO. It has to be calculated, assigned a dollar value, and disclosed as a non-cash expense on the balance sheet according to GAAP. Each option was valued at $18/shr - even when the IPO valued shares at $8 - given the required Black-Scholes option-valuation methodology. Actual compensation related to those options is zero, and the options now have a strike price that’s over $2,000.00 per share, making them effectively worthless. So, again, the CEO is paid only in cash in the low six figures - and the $20M figure is a historical one off item associated with required accounting for old stock options that have no real value.Why has the share price declined even as you report better financials?
We believe that the market has not fully understood how to value a roll-up strategy, which means that we believe the share is very undervalued. Especially given our $50M 2025 pro forma revenue guidance, as well as earnout assumptions built into our binding agreement to acquire Sportstech, which produced over $40M in profitable revenue in 2024.There are a lot of factors that go into stock prices and like any company we can’t predict or unpack how our shares trade. We can say that we are extremely bullish about our market - which is growing, and ripe for consolidation - and our brands and business. We can also say that we are confident in our formula for growth and success: accelerate via acquisition; structure deals with equity and earnouts; and so align deal strategy, acquisitions and shareholder upside while risk-managing any downside.
What are you doing to improve the share price?
We’re growing a valuable fitness and equipment portfolio, rapidly, in a capital efficient way. On a TTM basis, we expect to increase annual revenues nearly 10X from 2024 to the end of 2025. More specifically, over the past year, we have locked in:A worldwide distribution agreement with Woodway, an established and high quality partner for selling fitness equipment globally
Gold’s, Crunch, Chuze and Armah gym-chain initial 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
An expansion of our FORME brand into new verticals like golf, physical therapy, the military and college use-cases;
Significant steps to strengthen our listing and balance sheet; and
Our binding agreement to acquire Sportstech, Germany’s largest connected fitness and equipment business.
We’re also not stopping here - we’ll continue to build our customer and geographic presence, and also remain focused on finding additional acquisition opportunities.
Why should I buy/hold onto my shares?
We believe the market significantly undervalues TRNR on both a top and bottom line basis. As our investor deck and shareholder letters outline, we are building a risk-managed portfolio of fitness-related brands, content and equipment that has major upside.We’re acquiring and scaling businesses in a growing market with a lot of demand from both consumers and companies like gym chains, multi-family residential and hotels. We’ve announced two acquisitions, and by the end of 2025, we expect to scale revenues nearly 10X as compared to 2024. In short, we’re pleased with our progress in just the last twelve months and bullish on our prospects going forward.
What is TRNR’s status with Nasdaq? What’s the likelihood you are delisted?
We are in full compliance with Nasdaq continuing listing standards. You can read more details about this on our website or in our filings. Given our progress building the business and our revenues, we believe we will continue to be in compliance with Stockholder’s Equity. We cannot control the share price, but we are focused on maintaining compliance, so we are asking for shareholder approval for a reverse split in the chance that it is required by Nasdaq.TRNR did two reverse splits in 2024; will this occur again in the future?
Given the revenue base after the Sportstech acquisition, the profit potential and the equity we’re building, we are hopeful that we will not require another reverse split. We have no plans for an equity offering, which it seems is what caused a sudden decrease in share price in July 2024 and therefore we fell out of compliance with the Nasdaq listing standard and had to perform a reverse split. We’d expect that as we start to report significantly higher revenues and integrate our acquisitions, shareholders will start to better appreciate the quality of the business and therefore we will not be required to perform a reverse split, but we do want to be prepared in case there is a sudden deterioration in markets, which is why we are asking for shareholder approval for one.How is the company performing - what are the major achievements in the past year?
We are on track in terms of making significant progress over the past twelve months, laying the groundwork for a much larger business that matches our large opportunity. 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. We’ve done a lot to set the company and shareholders up for success, including locking in:- A worldwide distribution agreement with Woodway, an 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
- An expansion of our FORME brand into new verticals like golf, physical therapy, the military and college use-cases;
- Took significant steps to strengthen our listing and balance sheet; and
- Our binding agreement to acquire Sportstech, Germany’s largest connected fitness and equipment business.
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.
Why does buying other companies make sense for the business?
In a nutshell, TRNR offers exposure to a huge, growing market that we define in terms of consolidating overlooked value opportunities – fitness platforms and equipment that we can acquire and scale more efficiently than smaller owner-operators by themselves, due to our listing and capital structure.This acquisition strategy in turn gives us and our shareholders more exposure to a greater set of opportunities across the fitness, health and wellness markets.
When will we see meaningful growth in revenues? Profits?
Once the Sportstech acquisition closes - likely in April - we’ll be able to start reporting their results as part of TRNR operations in subsequent quarters. As noted in our most recent guidance, the most significant impact on the top line will be clear at the end of 2025, when we expect to report over $50M in revenues on a pro forma basis.How are your brands doing in the marketplace? When will we see more customer announcements?
We’re pleased with our ability to grow both brands on a capital-efficient basis. It remains early days yet, but we expanded FORME into the golf vertical - and we were able to sign multiple distribution as well as customer agreements for CLMBR across the US, EU, EMEA and Asia within a few months of closing the deal for those assets.What’s next for TRNR? More deals, or building out what you have?
Both. TRNR’s vision is building a portfolio of businesses that can capture value across different segments and geographies in health & wellness and drive significant multiple expansion for shareholders. Sportstech is large enough that our combined organic opportunity set is attractive, but also provides enough scale that we can acquire future businesses with larger synergies.Going forward, we’ll continue to execute by both operating what we buy, well - and by strategically acquiring additional growth businesses on a low-cost, low-risk basis.
Should I buy more TRNR stock? Why?
You have to make your own decisions about what stocks are right for your portfolio. We can say that the Sportstech deal illustrates the increasingly low-risk, high-growth potential that TRNR management is working to provide to shareholders.A roll-up strategy can provide consistent growth in all markets when executed well. We are focused on a portfolio strategy in a specific, high-growth sector ripe for consolidation and this can give stockholders terrific exposure to value creation. TRNR, especially with Sportstech, offers a lot of that kind of opportunity.