Interactive Strength 2025 Q1 Earnings Strong Performance as Net Income Improves 42%

Interactive Strength (TRNR) reported its fiscal 2025 Q1 earnings on May 19th, 2025. The company significantly improved its net income and revenue compared to the previous year. Interactive Strength's results exceeded expectations, driven by a notable 273.6% increase in total revenue. The company raised its 2025 pro forma revenue guidance to over $75 million, reflecting confidence in its growth prospects bolstered by strong first-quarter performance and anticipated contributions from pending acquisitions. This marks a positive outlook for the remainder of the fiscal year.

Revenue
Interactive Strength achieved a total revenue of $1.36 million in Q1 2025, representing a 273.6% increase from $363,000 in Q1 2024. Fitness product sales were the primary driver, generating $1.05 million. Membership revenue contributed $176,000, while training revenue added $130,000, culminating in the total revenue figure.

Earnings/Net Income
Interactive Strength narrowed its losses significantly, reporting a loss of $1.74 per share in Q1 2025, down from a staggering $2,681.82 per share in Q1 2024. The company reduced its net loss by 42% to $6.60 million, compared to a $11.39 million net loss in the same quarter last year. This improvement in EPS is a positive indicator of financial progress.

Price Action
The stock price of Interactive Strength has jumped 8.25% during the latest trading day, has surged 27.85% during the most recent full trading week, and has climbed 3.06% month-to-date.

Post-Earnings Price Action Review
The strategy of acquiring Interactive Strength (TRNR) shares following a revenue increase announcement has consistently delivered robust returns over the past five years. Investors who adopted this approach experienced a remarkable 100% return, significantly surpassing the S&P 500's 104.03% return during the same timeframe. This trend indicates that Interactive Strength's revenue announcements are a reliable predictor of short-term gains, underscoring the company's potential as a promising investment. The pattern of positive returns following revenue announcements suggests that investors have confidence in the company's ability to sustain growth, making it a viable investment strategy for those looking to capitalize on short-term market trends.

CEO Commentary
Trent Ward, CEO and Co-Founder of TRNR, highlighted that the company's recent acquisition activities and improved shareholder equity are positioned to create a transformational year. Although the acquisitions of Sportstech and Wattbike are not yet finalized, the company is already operating collectively, showcasing pro forma revenues exceeding $20 million in Q1. Ward expressed optimism regarding the future, stating that the company anticipates achieving positive adjusted EBITDA in Q4, as they were close to this milestone on a pro forma basis in Q1. He emphasized the focus on closing these transactions and integrating operations to enhance growth and synergies.

Guidance
The company has raised its 2025 pro forma revenue guidance to over $75 million, a more than 15% increase from the prior guidance of $65 million. This revision is based on the strong first-quarter performance across TRNR and the expected contributions from pending acquisitions. Ward noted the expectation of generating positive adjusted EBITDA in Q4, reflecting confidence in the operational integration and growth potential of the combined entities.

Additional News
Interactive Strength Inc. is making significant strides with its pending acquisitions of Sportstech and Wattbike, which are on track and expected to close within standard cross-border deal timelines. The company recently updated its investor FAQs, providing insights into these strategic acquisitions and reaffirming its revenue guidance over $75 million for 2025. Additionally, the acquisition activities are poised to contribute positively to the company's financial performance, with anticipated synergies and increased market reach. These developments are strengthening the company's position in the specialty fitness equipment sector, supported by innovative products under the CLMBR and FORME brands.