Business
Interactive Strength Inc. d/b/a FORME Reports Second Quarter 2023 Results
Net Loss and Earnings per Diluted Share of $13.6 million and $1.02 Adjusted EBITDA was a $5.7 million loss, a $4.1 million improvement versus second quarter
About this update from Interactive Strength Inc.
[{"type":"text","content":"Net Loss and Earnings per Diluted Share of $13.6 million and $1.02 Adjusted EBITDA was a $5.7 million loss, a $4.1 million improvement versus second quarter of 2022 Average Annualized Recurring Revenue per Household at $1,570, more than three times greater versus second quarter of 2022 Entered into Non-Binding Letter of Intent and Exclusivity Agreement to acquire a Connected Fitness Equipment Business AUSTIN, TX, Aug. 15, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire -- Interactive Strength Inc. d/b/a FORME (the \"Company\", or “FORME”) (NASDAQ: TRNR), today announced its financial results for the second quarter of 2023. The Company incurred a net loss of $13.6 million for the second quarter of 2023, or a loss of $1.02 per diluted share, as compared with a net loss of $11.9 million, or a loss of $24.46 per diluted share for the same period in 2022, due primarily to expenses incurred in connection with the Company’s initial public offering (the “IPO”). Adjusted EBITDA, a non-GAAP financial measure, was a $5.7 million loss for the quarter. Adjusted EBITDA for the second quarter reflects $4.3 million of non-cash stock-based compensation. For more information regarding the non-GAAP financial measures discussed in this press release, please see \"Non-GAAP Financial Measures\" and \"Reconciliation of GAAP to Non-GAAP Financial Measures\" below. Additionally, the Company entered into a non-binding letter of intent and exclusivity agreement to acquire a connected fitness equipment business. The potential transaction, if consummated, is expected to accelerate FORME’s commercialization path, result in immediate scale across all functions and create a high-growth and profitable platform that sells connected fitness equipment and digital fitness services across B2B and B2C channels. Based on internal projections from the target’s management, 2023 combined gross revenues are projected to exceed $10 million and 2024 combined gross revenues are projected to exceed $25 million. By the fourth quarter of 2024, the combined business is expected to be cash flow positive and to achieve positive adjusted EBITDA based on identified cost synergies. It is currently anticipated that all of the equity of the target company will be exchanged for TRNR equity and be subject to a “lock-up” until at least the end of October 2024, similar to pre-IPO shareholders. T...