Interactive Strength (TRNR) Q4 2025 earnings summary

Executive summary

• Revenue grew 114% year-over-year to $11.5 million, driven by the Wattbike acquisition, which contributed 71% of 2025 revenue.

• Net loss narrowed to $24.0 million from $34.9 million in 2024, with gross profit turning positive at $0.9 million versus a $2.8 million loss prior year.

• The company completed the acquisitions of Wattbike (July 2025) and Ergatta (March 2026), expanding its connected fitness portfolio.

• Significant legal settlements and ongoing litigation resulted in $4.3 million in accrued liabilities at year-end.

Financial highlights

• Fitness product revenue increased 160% to $10.3 million; membership revenue declined 7% to $0.7 million; training revenue fell 26% to $0.5 million.

• Gross margin improved to 8% from -52% year-over-year, primarily due to the Wattbike acquisition.

• Operating expenses decreased 21% to $20.8 million, with R&D down 58% and G&A down 15%, offset by a 110% increase in sales and marketing.

• Interest expense rose 52% to $11.8 million due to increased debt issuance.

• Working capital deficit was $16.6 million at year-end; cash and equivalents stood at $0.5 million.

Outlook and guidance

• Management expects further improvements in gross profit and margin in 2026, with a full year of Wattbike and the Ergatta acquisition expected to be accretive.

• The company remains dependent on external capital to fund operations and faces substantial doubt about its ability to continue as a going concern without additional financing.