May 7, 2025 | Fellow Shareholders:

 

As we move closer to completing our acquisition of Sportstech Brands Holding GmbH, we want to share a quick update on Sportstech’s recent financial performance – which we believe reinforces why we are so excited about this business.

As reported in their recent announcement, Sportstech delivered strong business momentum through April 2025 – including LTM and YTD performance,  with: 

• April 2025 revenues up 36% YOY; 
• Approximately $54M (€47M) of LTM revenue and $5M (€5M) of LTM EBITDA at current FX rates; and 
• YTD revenue growth of 8% YOY through April 2025

As a reminder, Sportstech is a leading direct-to-consumer fitness brand with a strong position in Germany and across Europe, and has been built profitably without outside investor capital.

 

What This Means for Our Shareholders

Starting off 2025 with this strong performance reaffirms our conviction that Sportstech is not only a growth leader in the home fitness space but also a very well-run business. 

In an environment where it seems that TRNR’s share price is pressured without regard to underlying business value or operating progress, we hope these new tangible financial results highlight Sportstech’s:

• Operational Excellence:
  The disciplined approach to cost control and targeted investments in product innovation are yielding tangible results.
• Market Traction:
  Strong revenues validate that Sportstech holds a competitive edge in a rapidly evolving industry with the right kind of consumer buyer.
• Synergy Potential with TRNR and Wattbike:
  As we plan around integrating Sportstech’s operations with TRNR’s broader digital fitness ecosystem, the enhanced scale and geographic diversification will position us for accelerated growth over the coming quarters.

Looking Ahead

We are confident that we are only just beginning and that our 2025 performance will be strong. 

This is, in part, why we – as Sportstech’s announcement highlights – are making a supplier-planning trip to China in a couple weeks with Ali Ahmad, that company’s Founder and CEO. We expect to be able to cut better deals with suppliers, knowing that our European revenue has not been affected by tariffs, which gives us more leverage as they see US companies cancel orders. 

We’re also finalizing regulatory steps and integration planning to ensure that, once closed, we can maximize the combined company’s potential. There is already a meeting this week in the UK between the TRNR, Wattbike and Sportstech teams to sketch this out.

We maintain our high conviction about this acquisition, as well as about Wattbike, our other target. 

We believe shareholders should take confidence in the operational momentum we’re already seeing in our new partner and we look forward to sharing more soon. 

Thank you for your continued support.

Forward Looking Statements:

This post includes 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 completing the acquisition of Sportstech in a timely manner or at all, the financial performance of the acquisition target, including the reported financials of Sportstech that have not been audited or reviewed by a PCAOB auditor and could vary materially once that audit or review work is completed and such financials are included in the Company’s reported financials, as well as 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 and for Sportstech’s products if the acquisition is completed (collectively, the “Products”); competition, including technological advances made by and new products released by our and Sportstech’s competitors; our ability to accurately forecast consumer demand for our Products and adequately maintain inventory of our Products; 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.