TRNR Signs Definitive Agreement to Acquire Ergatta, Increasing 2026 Pro Forma Revenue Guidance by 50% to More than $30m
Rhea-AI Summary
Interactive Strength (Nasdaq:TRNR) signed a definitive agreement to acquire Ergatta, lifting 2026 pro forma revenue guidance by 50% to more than $30 million.
Ergatta is expected to generate >$10 million revenue in 2026 with ~70% recurring subscriptions and ~30% EBITDA margin. Transaction EV maxes at $19.5 million, closing expected in Q1 2026.
Base value is $8.8 million (including $1.8M cash at close); significant consideration is contingent on 2026–2027 EBITDA.
Positive
- 2026 pro forma revenue increases >50% to over $30 million
- Ergatta expected >$10 million 2026 revenue with ~70% recurring
- Ergatta target ~30% EBITDA margin in 2026
- Maximum enterprise value capped at $19.5 million
- Deal structure preserves cash: less than 10% funded at closing
Negative
- $5.3 million of equity locked until May 2027
- $9.8 million of earn-outs contingent on 2026 EBITDA
- Initial cash at close is only $1.8 million
Market Reaction
Following this news, TRNR has gained 22.25%, reflecting a significant positive market reaction. Argus tracked a peak move of +45.1% during the session. Our momentum scanner has triggered 19 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $0.50. This price movement has added approximately $391K to the company's valuation. Trading volume is exceptionally heavy at 19.9x the average, suggesting very strong buying interest.
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Key Figures
Market Reality Check
Peers on Argus
Sector momentum data show 2 peers (e.g., WW, MRM) in scanner moving down (median move about -3.8%) without news, suggesting broader pressure across related names.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 31 | Sportstech FAQ update | Neutral | +2.7% | Updated FAQs on CFO hire and pending Sportstech acquisition closing. |
| Jul 01 | Wattbike acquisition close | Positive | -4.6% | Completed Wattbike deal with guidance for >$75M 2025 pro forma revenue. |
| Jun 18 | Wattbike approval/update | Positive | +3.5% | Regulatory approval and imminent closing of Wattbike acquisition. |
| Apr 10 | Wattbike FAQ update | Neutral | -2.8% | Investor FAQ update on anticipated $15M+ Wattbike acquisition. |
| Apr 08 | Wattbike deal signed | Positive | +1.4% | Signed binding agreement to acquire Wattbike with performance-based structure. |
Acquisition-related headlines have usually led to modest single-digit moves, with a mix of aligned and divergent reactions, especially around larger platform deals.
Over the past year, TRNR has used acquisitions to build a diversified connected fitness platform, notably the Wattbike transaction and a pending Sportstech deal. Acquisition updates on Apr 8, 2025 and regulatory/FAQ follow-ups through Oct 31, 2025 produced mostly low single-digit price moves, with one negative reaction to the Wattbike completion despite bullish guidance. Today’s Ergatta acquisition and 2026 pro forma revenue update to more than $30M continues this M&A-driven growth narrative.
Historical Comparison
In the past year, TRNR issued 5 acquisition-tagged updates with an average move of 0.03, indicating that M&A news has typically driven only modest price reactions.
Acquisition news has progressed from signing and closing the Wattbike deal to ongoing Sportstech updates, and now to adding Ergatta, reinforcing a roll-up strategy across connected fitness assets.
Regulatory & Risk Context
TRNR has an effective Form S-3/A shelf dated 2026-01-16, with at least one usage via a 424B5 prospectus supplement on 2026-01-23, providing flexibility to raise capital as needed.
Market Pulse Summary
The stock is surging +22.3% following this news. A strong positive reaction aligns with TRNR’s strategy of using acquisitions to lift revenue guidance, as seen with prior Wattbike transactions. The Ergatta deal adds expected 2026 revenue of more than $10M with about 30% EBITDA margin and lifts pro forma 2026 revenue to over $30M. However, the company already draws on an effective shelf registration and has used equity-linked financing, so investors have monitored potential dilution and integration execution risk.
Key Terms
ebitda financial
enterprise value financial
earn-outs financial
contingent consideration financial
AI-generated analysis. Not financial advice.
Ergatta's 2026 Revenue is expected to exceed
Performance-linked transaction valuation ensures attractive acquisition multiple and structure generates immediate cashflow for TRNR
Deal expected to close in Q1; TRNR expected to generate more than
AUSTIN, TX and BROOKLYN, NY / ACCESS Newswire / February 18, 2026 / Interactive Strength Inc. (Nasdaq:TRNR) ("TRNR" or the "Company"), owner of the Wattbike, FORME, and CLMBR connected fitness brands, today announced it has signed a definitive agreement to acquire Ergatta, Inc., the pioneer in game-based connected fitness. The parties signed a letter of intent on January 9, 2026, and have been working on the binding definitive agreement since that time.
Ergatta is a Brooklyn-based connected fitness company that pioneered game-based fitness content, building a stable and cash-generating subscription business with industry leading monthly net retention of more than
Assuming full achievement of the earn-outs, the maximum enterprise value would be
"The Founders of Ergatta have created a unique fitness experience and have built an attractive business that we expect to be accretive to TRNR immediately," said TRNR CEO, Trent Ward. "Ergatta's best-in-class gaming experience has already been licensed by iFIT, one of the biggest fitness equipment brands in the world and we plan to add the gaming experience to Wattbike and CLMBR. The Ergatta team also has strong customer acquisition capabilities and we expect that they will be able to drive revenue growth in the US for all of our brands with their help. As with all of our acquisitions, we are focused on minimizing near-term dilution and protecting downside with transaction valuations linked to future performance, while benefiting from additional upside from group synergies."
"Our team is very proud that we've built the most engaging fitness content platform in the world, and we've done it profitably," said Tom Aulet, Co-Founder and CEO of Ergatta. "Joining TRNR provides us the opportunity to grow Ergatta and also the Ergatta gaming experience across other hardware brands. This is the right next step for our business and we are looking forward to completing the transaction quickly."
Transaction Structure
TRNR will acquire
The base transaction value of
$8.8 million is comprised of$1.8 million cash at close,$1.8 million debt and$5.3 million in equity that is locked up until May 2027.An additional
$9.8 million could be earned by Ergatta achieving approximately$4.0 million in 2026 EBITDA, which would be payable in May 2027 as$3.5 million in cash and$6.3 million in equity.Up to an additional
$1.0 million in equity could be earned based on achieving approximately$4.8 million in 2027 EBITDA.TRNR expects to receive more cashflow from Ergatta in 2026 than the initial cash consideration paid. The initial cash consideration at closing will be funded through TRNR's existing financing facilities.
Ergatta's founders and key management team members have agreed to employment arrangements and are expected to continue leading the business post-acquisition.
TRNR expects to provide additional details regarding the transaction following the closing.
For more information, see TRNR's investor website as well as its required filings with the U.S. Securities and Exchange Commission (SEC).
TRNR Investor Contact
Ergatta Media Contact
About Ergatta:
Ergatta is the leader in game-based connected fitness, offering a suite of addictive workout experiences and a line of premium rowing machines with embedded gaming content. Ergatta's content is personalized to each user, highly interactive, and designed to build lasting fitness habits through games rather than instructors. The company's
About Interactive Strength Inc.
Interactive Strength Inc. (NASDAQ:TRNR) has established a leading portfolio of premium fitness brands - Wattbike, CLMBR, and FORME - that combine advanced hardware, smart technology, and immersive content to deliver exceptional training experiences for both commercial and home use.
Wattbike offers a range of high-performance indoor bikes that set the global standard in cycling. Known for unmatched accuracy, realistic ride-feel, and advanced performance tracking, Wattbike is trusted by elite athletes, national teams, and fitness enthusiasts around the world.
CLMBR redefines the next-generation vertical climbing experience through its patented open-frame design and immersive touchscreen, delivering a high-intensity, low-impact workout that's both efficient and effective.
FORME delivers strength, mobility, and recovery training through immersive content, performance-grade hardware, and expert coaching. Its wall-mounted systems include the Studio, a smart fitness mirror for guided programming and live 1:1 personal training, and the Lift, which adds smart resistance cable training-ideal for high-performance environments and sport-specific development.
From elite performance to everyday wellness, our ecosystem of performance-focused solutions delivers data-driven outcomes for athletes, fitness enthusiasts, and commercial operators.
For more information about Interactive Strength, please visit www.interactivestrength.com.
Channels for Disclosure of Information
In 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.
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 expected closing of the Ergatta acquisition, the financial performance of Ergatta and the combined company, revenue and EBITDA projections, the expected benefits of combining the companies' products and platforms, content licensing revenue growth, and the possibility of achieving operating leverage. 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: the ability to complete the acquisition on the expected terms and timeline; the ability to successfully integrate Ergatta's operations; demand for our products and services; subscriber retention rates; 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; our reliance on a limited number of suppliers and distributors for our products; and macroeconomic conditions affecting consumer discretionary spending. 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.
View the original press release on ACCESS Newswire
FAQ
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What purchase price and valuation metrics did TRNR announce for Ergatta (TRNR)?
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