Interactive Strength, Inc. (TRNR)·Q3 2024 Earnings Summary

Executive Summary

• Q3 revenue inflected to $2.01M, up 225% y/y and 225%+ q/q (from $0.62M in Q2), while net loss improved to $7.14M vs. $10.64M in Q2; adjusted EBITDA loss narrowed to $2.35M from $2.89M in Q2 .
• Management guided Q4 revenue to $2.4M and expects adjusted EBITDA loss to be below $2.0M; they also highlighted ongoing M&A work and issued a shareholder letter for further details .
• Balance sheet optics improved: stockholders’ equity reached $5.79M at quarter-end (above Nasdaq’s $2.5M minimum) with cash of $2.27M; management expects continued compliance following subsequent capital structure actions in November .
• The narrative shifted from an earlier Q1 target of run-rate adjusted EBITDA breakeven as early as Q4’24 to a Q2 reset that profitability is more likely in 2025, with Q3 focusing on narrowing losses and hitting revenue guidance .

What Went Well and What Went Wrong

What Went Well

• Achieved guidance and accelerated top-line: Q3 revenue was $2.01M, meeting management’s $2.0–$2.5M Q3 outlook and +225% q/q (company highlighted 325% growth vs. Q2 in the press release) .
• Operating improvements: Adjusted EBITDA loss improved to $(2.35)M from $(2.89)M in Q2 and $(3.45)M in Q1, reflecting expense control and better operating leverage as CLMBR shipments scaled .
• Compliance optics: Stockholders’ equity was $5.79M at 9/30 (vs. $0.41M at 6/30), and management reiterated confidence in Nasdaq compliance following capital transactions and reverse split actions in November .
  • CEO quote: “We achieved the revenue guidance of $2.0 million and reduced the adjusted EBITDA loss to $2.3 million. We expect to improve on both those figures in the fourth quarter...” .

What Went Wrong

• Still negative gross margin: Q3 gross loss of $(0.29)M on $2.01M revenue, though narrower vs. prior quarters; membership gross cost remained above membership revenue, contributing to negative gross profitability .
• Going concern risk disclosed: Management flagged substantial doubt about the company’s ability to continue as a going concern absent additional capital and/or lender relief despite recent equity raises and conversions .
• Leverage and current maturities: Total debt stood at $14.08M with $10.08M current; related party loans comprised ~$5.30M of current debt, underscoring near-term refinancing/execution risk .

Financial Results

Income statement highlights (USD Millions, except per-share)

YoY snapshot (Q3 2024 vs Q3 2023)

Revenue mix (USD Millions)

Balance sheet highlights (end of period)

Note: Company has one reportable segment; no segment P&L table is provided . The company ceased reporting prior DTC KPIs post-CLMBR integration; legacy ARR/household metrics are discontinued .

Guidance Changes

Earnings Call Themes & Trends

No Q3 earnings call transcript was found; themes below reflect press releases and 10-Q commentary.

Management Commentary

• “The third quarter was very positive for us as we achieved the revenue guidance of $2.0 million and reduced the adjusted EBITDA loss to $2.3 million. We expect to improve on both those figures in the fourth quarter, with revenue expected to be $2.4 million and adjusted EBITDA loss to be below $2.0 million.” — Trent Ward, CEO .
• “Our balance sheet improved due to the capital raise in July… we finished the quarter with $2.3 million of cash… stockholders’ equity of $5.8 million… we believe we are fully in compliance with Nasdaq listing standards…” .
• “We are actively working on additional acquisitions and will communicate more at the appropriate time.” .

Q&A Highlights

• No earnings call transcript was available; management provided details via 8-K press release and 10-Q, including Q4 revenue and adjusted EBITDA loss outlook and compliance commentary .
• Nasdaq compliance update and subsequent capital structure adjustments were disclosed in mid-November 8-Ks (note amendment/conversions; reverse split; publicly held shares update) .

Estimates Context

• Wall Street consensus estimates (S&P Global) for Q3 and Q4 2024 were unavailable at the time of retrieval due to S&P Global access limits; as such, comparisons to consensus cannot be provided. Values retrieved from S&P Global.*

Key Takeaways for Investors

• Delivery ramp is translating into revenue: $2.01M in Q3 with company-reported 325% sequential growth versus Q2; Q4 guide at $2.4M sets an achievable near-term bar if execution sustains .
• Operating leverage is improving: adjusted EBITDA losses narrowed Q/Q/Q, but watch if Q4 sub-$2.0M loss materializes alongside the $2.4M revenue target .
• Gross profitability is still negative, but trending better as product shipments scale; monitoring membership cost/revenue dynamics remains important for margin path .
• Liquidity and going concern risks persist: management disclosed substantial doubt absent additional capital or lender relief; follow-on raises/conversions remain a key swing factor .
• Compliance/lending catalysts: stockholders’ equity improved to $5.79M and subsequent November actions further support listing compliance; any delisting risk would be a major overhang .
• Strategic M&A optionality: management is pursuing acquisitions; timing and terms could change scale and capital needs .
• Watch EU/international expansion and B2B adoption (Crunch/Gold’s Gym momentum) as medium-term drivers for unit volume and margin mix .

Appendix: Actual vs Company Guidance (Q3 delivered)

Additional Context Documents

• Q3 2024 8-K and press release (financial results, guidance, non-GAAP reconciliations) .
• Q3 2024 10-Q (financial statements, going concern, capital structure, segment info) .
• Q2 2024 8-K (ramp issues, EU certification, pilots/orders, Q3 guide) .
• Q1 2024 8-K (early breakeven aspiration; now reset) .
• Post-earnings capital updates and Nasdaq compliance disclosures in November 8-Ks .