Interactive Strength Inc. (Nasdaq:TRNR) Provides Shareholder Update on Sportstech's Strong April 2025 and LTM Performance

Rhea-AI Summary

Interactive Strength Inc. (TRNR) provided a shareholder update on its pending acquisition target, Sportstech Brands Holding GmbH. Sportstech reported impressive 36% year-over-year revenue growth for April 2025, with Last Twelve Months (LTM) performance through April 2025 reaching approximately $54M in revenue and $5M in positive EBITDA at current FX rates.

Despite Q1 2025 revenue growth being constrained by low inventory availability, Sportstech expects full-year 2025 growth to align with April's 36% growth rate. The acquisition is anticipated to close as early as Q2 2025, pending regulatory and tax approvals. Sportstech's CEO Ali Ahmad and TRNR's CEO Trent Ward plan to attend the China Sport Show together to expand supplier partnerships.

Positive

• Strong 36% YOY revenue growth in April 2025
• Significant LTM performance with $54M revenue and $5M positive EBITDA
• Expected continued strong growth throughout 2025
• Strategic expansion of supplier partnerships in China

Negative

• Q1 2025 revenue growth was constrained by low inventory availability
• Acquisition completion still pending regulatory and tax approvals

Insights

Financial Analyst specializing in M&A

Sportstech's 36% revenue growth and positive EBITDA validates TRNR's acquisition strategy, promising significant financial contribution post-closing.

This update from Interactive Strength Inc. reveals impressive performance metrics from acquisition target Sportstech, showcasing 36% year-over-year revenue growth for April 2025. The last twelve months figures through April 2025 translate to approximately $54M in revenue and $5M in positive EBITDA at current exchange rates, representing a 9.3% EBITDA margin.

Particularly noteworthy is management's explanation that Q1 growth was actually constrained by inventory limitations, suggesting demand exceeded supply capabilities. This constraint appears temporary, with full-year 2025 growth projected to match April's strong performance.

The planned joint China trip by both companies' CEOs demonstrates proactive supply chain management ahead of the acquisition closing. This integration groundwork aims to address the inventory constraints mentioned as limiting Q1 growth and support the "shared growth goals" referenced in the release.

For TRNR shareholders, this announcement substantiates the acquisition rationale. Once completed, Sportstech will bring both substantial revenue and positive EBITDA to the combined entity, potentially enhancing TRNR's financial profile. The transaction appears on track to close as early as Q2 2025, with regulatory and tax approvals identified as the remaining hurdles.

While the release provides a compelling update on Sportstech's performance, it notably offers no metrics for Wattbike, the other acquisition target mentioned. Investors should reference TRNR's SEC filings for comprehensive details on the acquisition structure and strategic rationale.

Sportstech Announced Strong Results, with April 2025 revenue growth at 36% YOY

Current FX rates indicate that the LTM figures would be approximately $54M in Revenue and $5M in EBITDA through April 2025

Strong Business Momentum, Revenue and Positive EBITDA Underscore Target's Operational Strength and Logic of Acquisition in advance of Closing

AUSTIN, TX / ACCESS Newswire / May 7, 2025 / 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 provided an update to its shareholders about Sportstech Brands Holding GmbH, its pending acquisition target.

Earlier today, Sportstech announced 36% YOY revenue growth for April 2025, as well as last twelve month ("LTM") performance through April 2025, equaling approximately $54M in revenue and $5M in positive EBITDA at current FX rates (reported in local currency as €47M in LTM Revenue and €5M in LTM EBITDA). Sportstech noted that its revenue growth in the first quarter of 2025 was restrained by low inventory availability, but that it expects that revenue growth for the full year of 2025, relative to full-year 2024, to be closer to the 36% growth seen in April.

Ali Ahmad, Founder and CEO of Sportstech, said in the press release that "it was important to share the continued strength of our financial performance in anticipation of our upcoming joint trip to China with TRNR's Founder and CEO, Trent Ward, to attend the China Sport Show and to further integrate and expand supplier partnerships in support of our shared growth goals. We expect to continue to grow strongly throughout 2025 and to contribute significant revenue and profitability to TRNR's group's financials after the acquisition is completed."

The Company believes these results highlight Sportstech's strong brand position, operational discipline, and growth trajectory in Europe. The pending acquisition is expected to close as early as the second quarter of 2025, as soon as regulatory and tax approvals are received.

For more commentary, information and details on the rationale for and structure of the expected acquisition, please see TRNR's investor presentation on the Company's investor website as well as its required filings with the US Securities and Exchange Commission (SEC).

TRNR Investor Contact
ir@interactivestrength.com

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.

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 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.

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SOURCE: Interactive Strength Inc.

View the original press release on ACCESS Newswire

FAQ

What is TRNR's expected revenue from the Sportstech acquisition?

Sportstech reported LTM revenue of approximately $54M through April 2025, with 36% YOY growth in April, indicating significant revenue contribution potential post-acquisition.

When will TRNR complete the Sportstech acquisition?

The acquisition is expected to close as early as the second quarter of 2025, pending regulatory and tax approvals.

What is Sportstech's current EBITDA performance?

Sportstech reported approximately $5M in positive EBITDA for the Last Twelve Months (LTM) through April 2025.

How fast is Sportstech growing under TRNR's pending acquisition?

Sportstech reported 36% year-over-year revenue growth in April 2025, and expects similar growth rates for the full year 2025 compared to 2024.

What are the main challenges facing the TRNR-Sportstech deal?

The main challenges include pending regulatory and tax approvals, and previous inventory availability issues that affected Q1 2025 revenue growth.