Business
TRNR Signs Definitive Agreement to Acquire Ergatta, Increasing 2026 Pro Forma Revenue Guidance by 50% to More than $30m
Ergatta's 2026 Revenue is expected to exceed $10 million with approximately 30% EBITDA margin Performance-linked transaction valuation ensures attractive acquisition multiple and structure generates immediate cashflow for TRNR Deal expected to close ...
About this update from Interactive Strength Inc.
[{"type":"text","content":"Ergatta's 2026 Revenue is expected to exceed $10 million with approximately 30% EBITDA margin","length":97,"tagName":"p"},{"type":"text","content":"Performance-linked transaction valuation ensures attractive acquisition multiple and structure generates immediate cashflow for TRNR","length":132,"tagName":"p"},{"type":"text","content":"Deal expected to close in Q1; TRNR expected to generate more than $30 million in 2026 Pro Forma Revenue","length":103,"tagName":"p"},{"type":"text","content":"AUSTIN, TX and BROOKLYN, NY / ACCESS Newswire / February 18, 2026 / Interactive Strength Inc. (Nasdaq:TRNR) ("TRNR" or the "Company"), owner of the Wattbike, FORME, and CLMBR connected fitness brands, today announced it has signed a definitive agreement to acquire Ergatta, Inc., the pioneer in game-based connected fitness. The parties signed a letter of intent on January 9, 2026, and have been working on the binding definitive agreement since that time.","length":477,"tagName":"p"},{"type":"text","content":"Ergatta is a Brooklyn-based connected fitness company that pioneered game-based fitness content, building a stable and cash-generating subscription business with industry leading monthly net retention of more than 98%. Ergatta is expected to generate revenue of more than $10 million in 2026, with approximately 70% from recurring subscriptions providing high visibility, and approximately a 30% EBITDA margin. Additionally, Ergatta operates an asset-light business model that generates strong operational cashflow without requiring investment in inventory.","length":557,"tagName":"p"},{"type":"text","content":"Assuming full achievement of the earn-outs, the maximum enterprise value would be $19.5 million and, given the upper 2026 EBITDA threshold of approximately $4.0 million, TRNR expects the multiple of EBITDA to be less than 5.0x, before any group synergies. To ensure the valuation multiple is attractive to TRNR, 50% of the maximum enterprise valuation is contingent on the amount of Ergatta's 2026 EBITDA and 5% on 2027 EBITDA. Less than 10% of the transaction value is being funded at closing and TRNR expects to receive more cashflow from Ergatta than the initial cash consideration paid in 2026.","length":602,"tagName":"p"},{"type":"text","content":""The Founders of Ergatta have created a unique fitness experie...