Interactive Strength Inc. (NASDAQ:TRNR) stock rose in Thursday’s premarket session after the company announced it has signed a definitive agreement to acquire Ergatta, Inc., a provider of game-based connected fitness.
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%.
The deal is expected to close by the first quarter of 2026.
This move is expected to significantly enhance Interactive Strength’s revenue potential, contributing to a more robust financial outlook.
Deal Consideration
The deal includes a performance-linked transaction valuation that ensures an attractive acquisition multiple.
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, Interactive Strength expects the multiple of EBITDA to be less than 5.0x, before any group synergies.
To ensure the valuation multiple is attractive to Interactive Strength, 50% of the maximum enterprise valuation is contingent on the amount of Ergatta’s 2026 EBITDA and 5% on 2027 EBITDA.
Transaction Structure
The base transaction value of $8.8 million includes $1.8 million cash at close, $1.8 million debt, and $5.3 million in equity that is locked up until May 2027.
An additional $9.8 million could be earned by Ergatta, achieving approximately $4.0 million in 2026 EBITDA, which would be payable in May 2027 as $3.5 million in cash and $6.3 million in equity.
Up to an additional $1.0 million in equity could be earned based on achieving approximately $4.8 million in 2027 EBITDA.
Interactive Strength expects to receive more cash flow from Ergatta in 2026 than the initial cash consideration paid.
Interactive Strength expects fourth quarter 2025 revenue to exceed $4.5 million, representing ~100% year-over-year growth.
Full-year 2025 pro forma revenue expected to exceed $20 million, representing nearly four times its 2024 revenue of approximately $5 million.
Ergatta Financials
The acquisition of Ergatta is projected to boost Interactive Strength’s 2026 pro forma revenue guidance to over $30 million, with Ergatta itself expected to generate more than $10 million in revenue.
The acquisition is structured to generate immediate cash flow for Interactive Strength, with a significant portion of the transaction value contingent on Ergatta’s EBITDA performance in 2026 and 2027.
Technical Analysis
The stock is currently trading 10.42% below its 20-day simple moving average (SMA) and 73.6% below its 100-day SMA, indicating a bearish trend in the longer term. Shares have decreased 96.70% over the past 12 months and are positioned closer to their 52-week lows than highs.
The RSI is at 31.70, which is considered neutral territory, while the MACD shows a value of -0.1805, with the signal line at -0.2134, indicating bullish momentum as the MACD is above the signal line.
The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating that while there may be some underlying strength, the stock is still facing significant challenges.
- Key Resistance: 50 cents
- Key Support: 30 cents
TRNR Price Action: Interactive Strength shares were up 19.78% at $0.49 during premarket trading on Thursday, according to Benzinga Pro data.
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