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Interactive Strength Inc. (Nasdaq: TRNR) Reports First Quarter 2025 Results, Increases 2025 Pro Forma Revenue Guidance to more than $75M

1. TRNR reported $1.4 million in quarterly revenue, a 4x increase year-over-year. 2. Net loss decreased to $6.6 million from $11.4 million last year. 3. Stockholders' equity rose to $13.8 million, ensuring compliance with Nasdaq requirements. 4. TRNR raises 2025 pro forma revenue guidance to over $75 million due to acquisitions. 5. CEO anticipates positive adjusted EBITDA by Q4 2025 from integrated operations.

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$0.9305/20 02:39 PM EDTLatest Updated
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FAQ

Why Bullish?

The significant increase in revenue guidance and improving financial metrics suggest a positive outlook. Historically, similar earnings guidance increases have resulted in positive stock price movements.

How important is it?

The financial results and guidance are critical for short-term investor perception and market reaction. The raised guidance indicates growth potential which can attract further investment.

Why Short Term?

Investors may react quickly to the raised revenue guidance, expecting immediate positive impacts. Past earnings announcements often show price adjustments shortly after news releases.

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Company reports quarterly revenue of $1.4 million; net loss and earnings per diluted Share of $6.6 million and $1.74Quarterly adjusted EBITDA loss of $2.5 million reflects 29% YOY improvementStockholders' equity was $13.8 million at quarter endIncreases 2025 pro forma revenue guidance to more than $75 million based on strong first quarter across TRNR, Sportstech and Wattbike Interactive Strength Inc. (Nasdaq:TRNR) ("TRNR" or the "Company"), maker of innovative specialty fitness equipment under the CLMBR and FORME brands and pending acquirer of Sportstech and Wattbike, today announced its financial results for the first quarter of 2025.The Company reported revenue of $1.4 million, a nearly 4x increase from the prior-year period. Net loss for the quarter was $6.6 million, or $1.74 per diluted share, compared with a net loss of $11.4 million and $2,681.82 per share in the same period last year. These figures do not include the pending acquisitions of Sportstech and Wattbike.Adjusted EBITDA, a non-GAAP financial measure, was a loss of $2.5 million, reflecting improved operational efficiency. Stockholders' equity increased to $13.8 million, up from $7.1 million at year-end 2024, strengthening compliance with a key Nasdaq continued-listing requirement.As a result of strong Q1 performance across TRNR and the pending acquisitions of Sportstech, and Wattbike - which all together generated more than $20 million in pro forma revenue during the first quarter - the Company is raising its full-year 2025 pro forma revenue guidance to more than $75 million, a greater than 15% increase from the April guidance of $65 million.Trent Ward, CEO and Co-Founder of TRNR, said: "Our acquisition activity in the past few months and our improved shareholder's equity are expected to result in a transformational year. While our Sportstech and Wattbike deals are not yet closed, and therefore not reflected in our reported financials yet, we are operating as one group and our pro forma Q1 shows more than $20M in revenues when including those acquisitions. As a result, we are increasing our 2025 pro forma revenue guidance to more than $75M and we expect that we will generate positive adjusted EBITDA in Q4 given that we would have been close to this milestone on a pro forma basis in Q1. We're focused on closing the transactions in the near-term and integrating operations to drive increased growth and synergy."For more commentary, information and details of TRNR's strategy, as well as to sign up for direct updates, see the Company's investor website, latest FAQs and required filings with the US Securities & Exchange Commission (SEC).TRNR Investor Contact[email protected]About Interactive Strength Inc.:Interactive Strength Inc. produces innovative specialty fitness equipment and digital fitness services under two main brands: 1) CLMBR and 2) FORME. Interactive Strength Inc. is listed on NASDAQ (symbol: TRNR).CLMBR is a vertical climbing machine that offers an efficient and effective full-body strength and cardio workout. CLMBR's design is compact and easy to move - making it perfect for commercial or in-home use. With its low impact and ergonomic movement, CLMBR is safe for most ages and levels of ability and can be found at gyms and fitness studios, hotels, and physical therapy facilities, as well as available for consumers at home. www.clmbr.com.FORME is a digital fitness platform that combines premium smart gyms with live virtual personal training and coaching to deliver an immersive experience and better outcomes for both consumers and trainers. FORME delivers an immersive and dynamic fitness experience through two connected hardware products: 1) The FORME Studio Lift (fitness mirror and cable-based digital resistance) and 2) The FORME Studio (fitness mirror). In addition to the company's connected fitness hardware products, FORME offers expert personal training and health coaching in different formats and price points through Video On-Demand, Custom Training, and Live 1:1 virtual personal training. www.formelife.com.Channels for Disclosure of InformationIn compliance with disclosure obligations under Regulation FD, we announce material information to the public through a variety of means, including filings with the Securities and Exchange Commission ("SEC"), press releases, company blog posts, public conference calls, and webcasts, as well as via our investor relations website. Any updates to the list of disclosure channels through which we may announce information will be posted on the investor relations page on our website. The inclusion of our website address or the address of any third-party sites in this press release are intended as inactive textual references only.Non-GAAP Financial MeasuresIn addition to our results determined in accordance with accounting principles generally accepted in the United States, or GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance.The Company's non-GAAP financial measure in this press release consist of Adjusted EBITDA, which we define as net (loss) income, adjusted to exclude: other expense (income), net; income tax expense (benefit); depreciation and amortization expense; stock-based compensation expense; (gain) loss on debt extinguishment; vendor settlements; and transaction related expenses.The Company believes the above adjusted financial measures help facilitate analysis of operating performance and the operating leverage in our business. We believe that these non-GAAP financial measures are useful to investors for period-to-period comparisons of our business and in understanding and evaluating our operating results for the following reasons:Adjusted EBITDA is widely used by investors and securities analysts to measure a company's operating performance without regard to items such as stock-based compensation expense, depreciation and amortization expense, other expense (income), net, and provision for income taxes that can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired;Our management uses Adjusted EBITDA in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance; andAdjusted EBITDA provides consistency and comparability with our past financial performance, facilitate period-to-period comparisons of our core operating results, and may also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.Our use of Adjusted EBITDA, or any other non-GAAP financial measures we may use in the future, is presented for supplemental informational purposes only and should not be considered as a substitute for, or in isolation from, our financial results presented in accordance with GAAP. Further, these non-GAAP financial measures have limitations as analytical tools. Some of these limitations are, or may in the future be, as follows:Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;Adjusted EBITDA excludes stock-based compensation expense, which has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy;Adjusted EBITDA does not reflect: (1) changes in, or cash requirements for, our working capital needs; (2) interest expense, or the cash requirements necessary to service interest or principal payments on our debt, which reduces cash available to us; or (3) tax payments that may represent a reduction in cash available to us;Adjusted EBITDA does not reflect impairment charges for fixed assets and capitalized content, and gains (losses) on disposals for fixed assets;Adjusted EBITDA does not reflect (gains) losses associated with debt extinguishments.Adjusted EBITDA does not reflect losses associated with vendor settlements.Adjusted EBITDA does not reflect transaction related expenses for CLMBR acquisition and pending acquisitions of Wattbike and Sportstech.Adjusted EBITDA does not reflect non cash fair value gains (losses) on convertible notes, derivatives, warrants and unrealized currency gains (losses).Further, the non-GAAP financial measures presented may not be comparable to similarly titled measures reported by other companies due to differences in the way that these measures are calculated. For example, the expenses and other items that we exclude in our calculation of Adjusted EBITDA may differ from the expenses and other items, if any, that other companies may exclude from Adjusted EBITDA when they report their operating results. Because companies in our industry may calculate such measures differently than we do, their usefulness as comparative measures is limited. Because of these limitations, Adjusted EBITDA should be considered along with other operating and financial performance measures presented in accordance with GAAP.Forward Looking Statements:This press release 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 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 and the products of the acquisition targets if the acquisitions are completed (collectively, the "Products"); competition, including technological advances made by and new products released by our competitors and the competitors of the acquisition targets; 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.# # #SOURCE: Interactive Strength Inc.

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