10-Q · May 20, 2026
Interactive Strength Inc.'s Q1 2026 results reflected significant challenges, with revenue of $5.1 million, up 279% year-over-year but substantially below expectations, resulting in an EPS loss of $36.17. The company…
Earnings analysis · 10-Q
TRNR earnings analysis
Filed August 14, 2026 · Our reading of the company's report
The latest report
TRNR delivered substantial top-line and gross-margin improvement in Q2 2026, driven by Wattbike and Ergatta: revenue rose 445% year over year to $6.647 million and gross margin reached 48%. However, the company remained…
Read full summary
TRNR delivered substantial top-line and gross-margin improvement in Q2 2026, driven by Wattbike and Ergatta: revenue rose 445% year over year to $6.647 million and gross margin reached 48%. However, the company remained deeply unprofitable, with a $7.104 million net loss, a $17.37 diluted EPS loss and $5.636 million of operating cash burn for the first six months. The $38.9 million working-capital deficit, approximately $23.1 million of debt maturities over the next twelve months, limited $1.7 million liquidity and continuing material control weaknesses dominate the investment risk despite improving operating trends.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-17.37
- Segment
- One reportable operating segment: specialty fitness equipment, game-based fitness content and virtual training; revenue was $6.647 million in Q2 2026 versus $1.219 million in Q2 2025. By product, fitness products generated $4.379 million, membership $2.076 million, and training and other $0.192 million.
What stood out
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Revenue accelerated sharply
Q2 revenue increased to $6.647 million from $1.219 million a year earlier, a $5.428 million or 445% increase, and rose from approximately $5 million in Q1 2026. Management attributed the year-over-year growth primarily to the Wattbike and Ergatta acquisitions.
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Gross margin turned positive
Gross profit improved to $3.215 million from a $194,000 gross loss in Q2 2025, lifting gross margin to 48% from negative 16%. Management expects further margin improvement from acquisition synergies.
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Acquisitions expanded revenue mix
Fitness product revenue rose to $4.379 million from approximately $0.9 million in Q2 2025, including $3.7 million from Wattbike and $0.6 million from Ergatta. Membership revenue increased to $2.076 million from $0.2 million, substantially all associated with Ergatta.
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Operating loss narrowed
Loss from operations narrowed to $3.372 million from $5.824 million in Q2 2025, while operating expenses increased only to $6.587 million from $5.630 million despite the acquired businesses. General and administrative expense declined to $3.988 million from $4.640 million.
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Operating cash burn stabilized
Operating cash use was $5.636 million in the six months ended June 30, 2026, modestly better than $5.743 million a year earlier. Investing cash flow was positive $3.409 million, helped by $6.350 million of Sportstech loan repayment proceeds, partly offset by $1.711 million of acquisition cash paid and $334,000 of property purchases.
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Ergatta adds meaningful scale
The company completed the Ergatta acquisition for approximately $13.410 million, including $2.075 million of cash, and Ergatta contributed $2.643 million of Q2 revenue and a $391,000 operating loss. This adds scale but remains dilutive to current profitability.
What to watch
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Severe liquidity and maturity risk
Management disclosed substantial doubt about going concern: available liquidity was approximately $1.7 million, which was insufficient for the next twelve months absent additional outside capital. Approximately $23.1 million of debt was scheduled to mature during that period, and management stated it lacked sufficient liquidity for cash repayment.
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Large working-capital deficit
The company had a $38.9 million working-capital deficit at June 30, 2026, including $21.4 million of current convertible notes and loans payable and $9.5 million of mandatorily redeemable preferred stock, against approximately $1.0 million of cash. Accumulated deficit was $245.4 million.
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Material control weaknesses persist
Management concluded disclosure controls and internal control over financial reporting were not effective as of June 30, 2026 because of material weaknesses across the control environment, risk assessment, control activities, information and communication, and monitoring. The company stated its accounting-software weakness was not fully remediated and expected new software later in 2026.
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Convertible debt creates dilution
The company added a new risk concerning convertible-debt dilution and financing constraints. During the first six months of 2026, $4.4 million of Class A Incremental Notes converted into 376,897 common shares, while total potentially dilutive shares excluded from EPS were 348,414.
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Acquisition integration remains unproven
The company added acquisition-integration risks following Ergatta, including possible loss of employees, customers and contractual relationships and assumption of unforeseen liabilities. Ergatta generated a $391,000 operating loss in Q2 2026, and the fair value of its contingent earnout increased to $2.104 million from $1.587 million at acquisition.
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Potential Nasdaq delisting
A new Nasdaq risk states that securities could face immediate suspension and delisting if market value of listed securities remains below $5 million for 30 consecutive business days once the rule becomes effective. Delisting would also constitute an event of default under some debt agreements.
Management's outlook
No explicit numeric revenue or EPS guidance was provided. Management expects further margin improvements in the second half of 2026 and beyond, expects membership revenue to increase during the remainder of 2026, and expects the STEPR acquisition to close in Q3 2026, subject to conditions.
Earlier filings 4
10-K · March 31, 2026
Interactive Strength positions itself as an operationally‑focused acquirer in connected fitness, owning Wattbike, CLMBR and FORME as of December 31, 2025 and pursuing growth via acquisitions and product/channel…
10-Q · November 14, 2025
Interactive Strength reported Q3 revenue of $4.815M (three months ended Sept 30, 2025), up from $2.014M in Q3 2024 (+$2.801M, +139.1%), producing a gross profit of $825k versus a gross loss of $288k in Q3 2024. The…
10-K · March 31, 2025
Interactive Strength (CLMBR and FORME) positions itself as a specialty connected-fitness hardware + content platform, selling CLMBR vertical climbers (MSRP $3,995 or less) and FORME smart gyms while operating one…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.