Executive Summary

Q1 2024 revenue was $0.363M, up 131% year over year from $0.157M, with net loss of $11.4M and diluted EPS of -$0.67; adjusted EBITDA loss improved to -$3.4M from -$4.4M in Q1 2023 .
Management reiterated expectations to reach run-rate adjusted EBITDA positive as early as Q4 2024, pointing to CLMBR integration and WOODWAY’s distribution leverage to drive near‑term orders and pilot expansions .
The business model pivoted toward B2B; legacy DTC KPIs (households, members, ARR, ARPH, NDR) were discontinued as no longer indicative of performance .
Near-term catalysts: anticipated flagship CLMBR orders/pilot expansions and Q2 results that should reflect full-quarter CLMBR contribution; prior quarter highlighted a WOODWAY purchase order that could exceed $7M in net revenue .

What Went Well and What Went Wrong

What Went Well

YoY revenue growth on early CLMBR contribution and broader mix (membership and training grew y/y); total revenue rose to $0.363M vs $0.157M in Q1 2023 .
Adjusted EBITDA loss narrowed to -$3.449M, an improvement versus -$4.427M in Q1 2023, with stock-based compensation at $3.366M in Q1 2024 .
Strong strategic positioning post-CLMBR integration and WOODWAY partnership: “We expect to announce a number of flagship orders and pilot expansions with major fitness center operators for CLMBR in the near-term…”; reaffirmed target to reach run-rate adjusted EBITDA positive by Q4 2024 .

What Went Wrong

Unit economics remain pressured: gross loss was -$1.200M on $0.363M revenue, driven by cost of membership $1.019M and cost of fitness product $0.379M .
Financing costs and leverage: interest expense was $2.000M in Q1, with total liabilities of $39.818M and stockholders’ deficit of -$2.942M as of March 31, 2024 .
Liquidity tightness: cash and cash equivalents were reported as $0, with net cash used in operating activities of -$2.959M in Q1 2024 .

Financial Results

Income Statement KPIs vs prior periods

Metric	Q3 2023	Q4 2023	Q1 2024
Net Loss ($USD Millions)	-$10.408	-$11.402	-$11.394
Diluted EPS ($USD)	-$0.73	-$0.80	-$0.67
Adjusted EBITDA ($USD Millions)	-$3.373	-$3.467	-$3.449
Total Operating Expenses ($USD Millions)	$8.952	n/a (not disclosed)	$8.241

Revenue YoY and sequential detail

Metric	Q1 2023	Q1 2024
Total Revenue ($USD Thousands)	$157	$363
Gross Profit ($USD Thousands)	-$1,651	-$1,200

Revenue mix (segment breakdown where disclosed)

Revenue Component ($USD Thousands)	Q1 2023	Q1 2024
Fitness Product Revenue	$72	$53
Membership Revenue	$24	$155
Training Revenue	$61	$155
Total Revenue	$157	$363

Additional quarterly reference (two quarters prior)

Revenue Component ($USD Thousands)	Q3 2023
Fitness Product Revenue	$206
Membership Revenue	$38
Training Revenue	$62
Total Revenue	$306

KPIs (legacy DTC metrics vs policy change)

KPI	Q3 2023	Q4 2023	Q1 2024
Households (end of period)	226	224	Not reported
Members (end of period)	232	305	Not reported
Annual Recurring Revenue (ARR)	$464,425	$493,690	Not reported
ARPH ($)	$1,723	$1,954	Not reported
Net Dollar Retention (%)	185%	73%	Not reported

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA (run-rate)	Q4 2024	Run-rate Adjusted EBITDA positive as early as Q4 2024	Run-rate Adjusted EBITDA positive as early as Q4 2024	Maintained
Adjusted Operating Expenses	2024	Further reduction expected in 2024 despite CLMBR acquisition	Lower adjusted operating expenses expected; contribution from CLMBR/WOODWAY	Maintained
Revenue drivers (orders)	Near-term	Large WOODWAY purchase order could exceed $7M net revenue	Expect flagship orders and pilot expansions for CLMBR in near-term	Maintained focus on B2B ramp

Earnings Call Themes & Trends

Note: A Q1 2024 earnings call transcript was not found in filings or document catalog; analysis reflects press releases and 8‑K disclosures (no transcript listed).

Topic	Previous Mentions (Q3 2023, Q4 2023)	Current Period (Q1 2024)	Trend
CLMBR acquisition and integration	Executed definitive agreement to acquire CLMBR assets; transformational to profitability timeline	CLMBR integrated; partial quarter contribution; expect near-term flagship orders/pilot expansions	Strengthening integration and commercialization
Distribution partnerships (WOODWAY)	Growing B2B footprint; WOODWAY to drive business forward	WOODWAY fully engaged post worldwide distribution agreement; leverage for orders	Execution ramp via partner
B2B pivot vs DTC metrics	DTC KPIs emphasized historically	DTC KPIs discontinued; emphasis on commercial/B2B performance	Strategic shift completed
Expense discipline	Continued improvement; Q4 adjusted OpEx (ex SBC/D&A) $2.8M, down $0.5M vs Q3	Expect lower adjusted operating expenses in 2024 despite acquisition	Cost control continues
Inventory and product availability	Sold most Lift inventory; targeting holiday/new year availability	CLMBR contribution partial; expect stronger Q2 as inventory and integration normalize	Improving supply readiness
Capital structure/liabilities	Conversion of nearly $10M liabilities into equity in Q1 2024 (disclosed in Q4 release)	Balance sheet reflects preferred issuance and convertible notes; stockholders’ deficit remains	Deleveraging efforts ongoing

Management Commentary

“Now that CLMBR has been integrated into the Company’s operations, and WOODWAY is fully engaged after signing the worldwide distribution agreement, we expect the potential of the acquisition to begin to show in the results of second quarter of 2024.” — Trent Ward, Co‑Founder and CEO .
“We expect to announce a number of flagship orders and pilot expansions with major fitness center operators for CLMBR in the near-term…we expect to reach run-rate Adjusted EBITDA positive as early as in the 4th quarter of 2024.” — Trent Ward .
“The fourth quarter of 2023 showed continued improvement in expense control…We expect to see a further reduction in adjusted operating expenses in 2024 despite the acquisition of CLMBR…we expect to reach run-rate Adjusted EBITDA positive as early as in the 4th quarter of 2024.” — Trent Ward .
“We continue to grow our distribution footprint in different B2B verticals and are excited about gaining a partner such as WOODWAY to really drive the business forward.” — Trent Ward (Q3 2023) .

Q&A Highlights

No Q1 2024 earnings call transcript was found; therefore Q&A themes and clarifications are unavailable from primary sources .

Estimates Context

Wall Street consensus (S&P Global) for Q1 2024 EPS and revenue was unavailable due to data access limits; therefore, no estimate comparison is provided. Values to anchor consensus could not be retrieved from S&P Global at this time. Please note: estimates unavailable from S&P Global.

Key Takeaways for Investors

Revenue inflected higher YoY with broader mix (membership and training) and early CLMBR contribution; expect stronger sequential momentum in Q2 as CLMBR is included for the full period .
Management reaffirmed a path to run-rate adjusted EBITDA positive by Q4 2024; execution hinges on B2B order flow (CLMBR) and continued cost discipline .
Gross margin remains deeply negative, reflecting membership and product cost structure; operating model normalization and scale are required to translate B2B ramp into margin improvement .
Financing costs and leverage are material headwinds (Q1 interest expense $2.0M; total liabilities $39.8M); balance sheet initiatives (e.g., prior liabilities-to-equity conversions) are supportive but liquidity remains tight .
Strategic narrative shifted firmly to commercial channels; legacy DTC KPIs are no longer reported, aligning disclosure with new revenue drivers .
Near-term trading catalyst: confirmation of flagship CLMBR orders and pilot expansions, plus Q2 print with full-quarter CLMBR inclusion; WOODWAY distribution alignment is a key accelerant for B2B sales .
Monitor disclosures for quantitative guidance updates (revenue/margins) and any additional balance sheet actions that could reduce interest burden and strengthen liquidity .

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