Executive Summary

Q2 2024 narrowed losses and improved operating efficiency: Net loss was $10.6M and diluted EPS was $(17.48), with Adjusted EBITDA loss improving to $(2.9)M from $(5.7)M YoY and from $(3.4)M QoQ .
Revenue ramp slowed by CLMBR component upgrades and shipping delays; management pushed “run‑rate Adjusted EBITDA” positivity to 2025, versus prior guidance of “as early as Q4 2024” .
Commercial traction building: pilots converted to orders at Crunch Fitness (13 CLMBRs) and Gold’s Gym SoCal (2 CLMBRs per 23 locations, installs expected in Q3), plus initial international orders pending EU certifications .
Outlook: Q3 2024 revenue guided to $2.0–$2.5M; range depends on timing of EU certification and deliveries. Nasdaq compliance regained; $4.0M offering closed in July, with further debt-to-equity conversions expected to improve stockholders’ equity .

What Went Well and What Went Wrong

Successful conversion of pilots to initial orders: Crunch Fitness completed a group fitness pilot and purchased 13 CLMBRs; Gold’s Gym SoCal ordered 2 CLMBRs per 23 locations with installs expected in Q3 .
Operating improvement: Adjusted EBITDA loss improved to $(2.9)M (YoY +$2.8M; QoQ +$0.6M), with total operating expenses reduced to $7.0M from $10.8M YoY .
Nasdaq listing milestones and capital position: Company regained compliance with the Minimum Bid Price and closed a ~$4.0M public offering; expects further debt-to-equity conversions to support equity compliance .

Quotes:

“We have made progress towards our highest priority of achieving run-rate adjusted EBITDA profitability…” but “do not expect…until 2025 due to a slower ramp in revenue for CLMBR.”
“Crunch Fitness…purchased 13 CLMBRs…Gold’s Gym SoCal…placed an order to install two CLMBRs in each of the group’s 23 locations.”

Revenue delays from component upgrades: Reliability testing identified CLMBR components needing upgrades, delaying shipments and revenue generation in Q2 .
Guidance push-out: Run-rate Adjusted EBITDA positivity now expected in 2025, versus prior “as early as Q4 2024,” reflecting slower CLMBR ramp post‑acquisition .
Continued losses: Net loss of $10.6M and gross loss of $0.88M; membership and training costs exceeded related revenues, sustaining negative gross margin .

Metric	Q2 2023	Q1 2024	Q2 2024
Total Revenue ($USD Thousands)	316	363	621
Net Loss ($USD Thousands)	(13,602)	(11,394)	(10,637)
Diluted EPS ($USD)	$(40.78)	$(0.67)	$(17.48)
Gross Loss ($USD Thousands)	(1,138)	(1,200)	(880)
Total Operating Expenses ($USD Thousands)	10,800	8,241	7,002
Adjusted EBITDA ($USD Thousands)	(5,731)	(3,449)	(2,894)
Weighted Avg Shares (Basic & Diluted)	333,519	16,994,445	608,655

Metric	Q2 2023	Q1 2024	Q2 2024
Cost of Fitness Product Revenue ($USD Thousands)	(427)	(379)	(347)
Cost of Membership ($USD Thousands)	(939)	(1,019)	(982)
Cost of Training ($USD Thousands)	(88)	(165)	(172)
Total Cost of Revenue ($USD Thousands)	(1,454)	(1,563)	(1,501)
Gross Loss ($USD Thousands)	(1,138)	(1,200)	(880)

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3 2024	N/A	$2.0M–$2.5M; range driven by EU certifications timing	Initiated
Run-rate Adjusted EBITDA Positivity	Companywide	“As early as Q4 2024” (May release)	“Near-term,” but not until 2025 (Aug release)	Pushed out
Revenue/Profitability Guidance Timing	FY 2024 vs 2025	2024 expectations tied to CLMBR ramp	“Does not expect to achieve previous revenue and profitability guidance until 2025”	Lowered/deferred

Note: No Q2 2024 earnings call transcript was available in our document catalog.

Topic	Q4 2023 (Prev Mentions)	Q1 2024 (Prev Mentions)	Q2 2024 (Current Period)	Trend
CLMBR ramp & distribution	Announced acquisition benefits and WOODWAY purchase order potential (+$7M net revenue)	Integration progress; WOODWAY worldwide distribution engaged	Reliability upgrades delayed shipments; commercial specs exceeded; WOODWAY partnership validating durability	Ramp slower, quality improved
Fitness center pilots	N/A	Expected flagship orders/pilot expansions	Crunch purchased 13 units; Gold’s Gym SoCal 2 per 23 locations, installs expected in Q3	Pilot → initial rollout
International expansion	N/A	N/A	Initial orders in Germany and Gulf region; EU certifications expected in Q3; strong demand anticipated	Building pipeline; certification gating
Profitability timeline	Cash flow/EBITDA positive expected late 2024	Run-rate Adj. EBITDA positive “as early as Q4 2024”	Now “near-term” but not until 2025	Deferred
Capital/Listing	IPO and financing activity	Debt conversions and equity improvements	Regained Nasdaq Minimum Bid Price; expects Equity Rule compliance by Q3 report; $4.0M offering closed	Improving compliance

“We have made progress towards our highest priority of achieving run-rate adjusted EBITDA profitability…though we do not expect to…until 2025 due to a slower ramp in revenue for CLMBR.”
“As a result of thorough reliability testing…we determined that the longevity of a few CLMBR components would benefit from being upgraded and we experienced delays in shipping product, and therefore generating revenue, to customers…”
“Crunch Fitness…purchased 13 CLMBRs…Gold’s Gym SoCal…install two CLMBRs in each of the group’s 23 locations…installations will occur during the third quarter.”
Prior guidance (May): “We expect to reach run-rate Adjusted EBITDA positive as early as in the 4th quarter of 2024.”
Capital/Equity: “Closed an equity offering of $4.0 million on July 2…expects to be in compliance with the Equity Rule when its third quarter earnings are reported in November, driven by expected further conversions of debt to equity.”

No Q2 2024 earnings call transcript was available in our document catalog; no Q&A highlights to report.

Wall Street consensus (S&P Global) for Q2 2024 and Q3 2024 was not available to compare in our session today. Management guided Q3 revenue to $2.0–$2.5M; estimates should adjust to slower CLMBR ramp and EU certification timing .

Commercial validation is improving: pilots at Crunch and Gold’s Gym have converted to orders, with near-term installs in Q3 likely to support revenue traction .
Q3 revenue outlook of $2.0–$2.5M hinges on EU certifications; any delay shifts deliveries and could push revenue into Q4, a key trading catalyst to monitor .
Profitability timeline deferred: management now expects run‑rate Adjusted EBITDA positive in 2025, reflecting a slower CLMBR ramp despite operational progress—estimates and positioning should reflect a longer runway .
Operating efficiency trend is favorable: total operating expenses fell to $7.0M from $10.8M YoY, while Adjusted EBITDA improved sequentially and YoY .
Listing and capital structure catalysts: regained Nasdaq Minimum Bid Price compliance and closed $4.0M offering; further debt conversions expected to enhance equity compliance—reducing listing risk .
Risk lens: continued negative gross margin and losses, plus certification and delivery timing, can introduce volatility; watch component upgrade execution and B2B sell-through pacing .
Narrative drivers: execution on EU certifications, gym chain rollouts, and WOODWAY distribution expansion are likely to be the next stock reaction catalysts for TRNR .