Interactive Strength Expects Record Third-Quarter Revenue of $8.0 Million
Key Facts
Interactive Strength forecast record revenue of $8.0 million for the third quarter of 2026, according to its announcement published through ACCESS Newswire ahead of its upcoming results release. The company estimated an adjusted loss before interest, taxes, depreciation and amortization of about $0.5 million for the same period. Its previous revenue guidance ranged from $7 million to $8 million, according to the shareholder letter announcement. The new estimate therefore puts revenue at the top end of the company's previously stated range. These figures remain company forecasts ahead of the results release, while the adjusted loss measure is calculated outside generally accepted accounting principles and does not represent a net loss.
The forecast follows reported revenue of $6.6 million in the second quarter of 2026, according to that quarter's earnings release. That revenue marked a year-on-year increase of 445% compared with the second quarter of 2025. The second quarter also included Ergatta's results for a full quarter for the first time, according to the company's explanation on its website. Interactive Strength closed its acquisition of Ergatta on March 11, 2026, before the start of the second quarter. Gross margin rose to 48% in the second quarter from 31% in the first quarter, the shareholder letter announcement showed.
Alongside the margin improvement, the company reported that its adjusted loss before interest, taxes, depreciation and amortization narrowed to $0.6 million in the second quarter. The loss on the same basis was $1.8 million in the first quarter of 2026, according to the earnings release. Explaining the continued losses at group level, the company cited central costs associated with operating a listed entity. It said on its frequently asked questions page that profits from Ergatta and Wattbike "do not fully cover the central costs of running a listed company." The company also says it pays for its acquisitions primarily with restricted, performance-linked shares, according to its description of how it finances acquisitions.
In the STEPR transaction, Interactive Strength expected the acquisition target's revenue to exceed $15 million in 2026. It attributed this expected growth to increased demand from U.S. retailers, according to the acquisition agreement announcement. It described STEPR in the announcement as "profitable," while saying the deal valuation was linked to performance. When announcing the agreement, Interactive Strength forecast group revenue of more than $50 million in 2026 on a pro forma basis including the transaction. This estimate concerns group revenue assuming the acquisition is included, rather than reported revenue already generated during the year.
The risks disclosed by the company include substantial doubt about its ability to continue as a going concern, according to the shareholder letter announcement. The company used the term "substantial doubt" when presenting this risk among its warnings. It also warned of potential dilution of existing shareholders through the conversion or exchange of convertible securities. This warning relates to existing shareholders' ownership stake when those securities are converted or exchanged. The disclosed risks remain alongside the improvements in revenue and margins the company presented in its results and forecasts.
Conditions for completing the STEPR acquisition include preparing the required audited financial statements, according to the shareholder letter announcement. Preparing those statements is among the requirements for completing the transaction on which the company based its pro forma annual revenue estimate. On operating performance, Interactive Strength targets profitability on an adjusted earnings before interest, taxes, depreciation and amortization basis in the fourth quarter of 2026. The target relates to the adjusted non-GAAP measure, rather than net profit. The company will report third-quarter results before the market opens on November 16, 2026, according to the date specified in its announcement.