Interactive Strength Inc. Reports 459% Revenue Increase to $5.38 Million for 2024

Interactive Strength Inc., the parent company of fitness brands CLMBR and FORME, reported total revenue of $5.38 million for the year ended December 31, 2024, a 459% increase compared to the $0.96 million in revenue generated during the prior year. This significant increase is primarily attributed to the acquisition of CLMBR in February 2024. The company's revenue streams include sales of connected fitness hardware (74% of total revenue in 2024), membership revenue (15%), and personal training revenue (11%). However, the company also reported a net loss of $34.93 million for 2024, compared to a net loss of $51.37 million in 2023.

Significant changes in the company's financial performance compared to the previous fiscal year include a substantial increase in revenue across all three categories, driven by the CLMBR acquisition. Cost of revenue increased by 26%, primarily due to higher sales. Operating expenses decreased by 46%, mainly due to reductions in research and development, sales and marketing, and general and administrative expenses, partially offset by increased amortization of intangibles from the CLMBR acquisition. The company's net loss improved, although it remained substantial. Stock-based compensation expense decreased significantly from $29.9 million in 2023 to $10.3 million in 2024.

During the year, Interactive Strength engaged in several significant developments. The company acquired CLMBR, Inc. in February 2024, significantly expanding its product offerings and revenue streams. Several convertible notes were issued and subsequently converted into shares of common stock. The company also entered into a binding transaction agreement to acquire Sportstech Brands Holding GmbH, subject to the fulfillment of certain performance metrics. Other notable transactions included a settlement agreement resulting in the issuance of preferred stock and subsequent conversions, and a loan agreement with Sportstech.

Key operational developments included the continued expansion of the FORME platform, with the addition of CLMBR's vertical climbing machine and digital platform. The company focused on expanding its commercial and corporate wellness customer base, leveraging established distributors to scale sales efficiently. The company also highlighted its strategy to increase uptake of add-on services and reduce the cost of personal training while maintaining quality. As of December 31, 2024, the company employed 19 full-time equivalent employees in the United States and 7 in Taiwan.

The company's outlook remains focused on growth through acquisitions, geographic expansion, and increased adoption of its add-on services. However, the 10-K filing also highlights substantial risks, including operating losses, dependence on outside capital, and substantial doubt about the company's ability to continue as a going concern. The company acknowledges the competitive nature of the fitness industry and the challenges associated with managing rapid growth and maintaining compliance with various regulations. The company's future success depends on its ability to execute its growth strategy while mitigating these significant risks.