U.S. fitness equipment company Interactive Strength Inc. (NASDAQ: TRNR) announced a positive update regarding its pending acquisition target, Sportstech Brands Holding GmbH, reporting significant revenue growth for the German fitness equipment provider. This news was met with a notable advance in TRNR's stock price, signaling strong investor confidence in the strategic acquisition.

Interactive Strength Inc. Investment Underpins Sportstech's Accelerated Revenue Growth

U.S. fitness equipment company Interactive Strength Inc. (NASDAQ: TRNR) announced a positive update regarding its pending acquisition target, Sportstech Brands Holding GmbH, reporting significant revenue growth for the German fitness equipment provider. This news was met with a notable advance in TRNR's stock price, signaling strong investor confidence in the strategic acquisition.

The Event in Detail

On September 4, 2025, Interactive Strength Inc. highlighted Sportstech Brands Holding GmbH's robust financial performance, including a 45% year-over-year revenue growth for August 2025. This acceleration in sales is directly attributed to increased inventory availability, a result of financial investments made by TRNR as part of their partnership.

Further demonstrating its momentum, Sportstech recorded a 20% year-over-year revenue increase for the four-month period spanning May through August 2025. The company's year-to-date revenue growth through August reached 13%, an uptick from the 8% reported through April. For the Last Twelve Months (LTM) through August 2025, Sportstech generated approximately $58 million in revenue and $6 million in positive EBITDA. Looking ahead, Sportstech anticipates its full-year 2025 revenue growth to exceed 30%.

Analysis of Market Reaction

The strong financial update from Sportstech resonated positively with investors, driving Interactive Strength Inc.'s stock higher. TRNR's shares advanced by 12.70% following the announcement. This market reaction underscores investor optimism that the integration of Sportstech, with its accelerating growth trajectory, will be accretive to TRNR's future revenues and profitability. The significant stock price movement reflects a positive re-evaluation of TRNR's acquisition strategy and the operational strength of its prospective subsidiary.

Broader Context and Implications

The planned acquisition of Sportstech, a Berlin-based company serving over three million customers across Europe, represents a strategic expansion for Interactive Strength Inc. into key international markets. TRNR's investment in Sportstech has already yielded tangible results in accelerated sales, reinforcing the rationale behind the merger. Interactive Strength Inc. has indicated a revised pro forma revenue guidance of over $80 million for 2025, incorporating the full-year impact of its recent Wattbike acquisition and the pending Sportstech purchase. This move aligns with TRNR's broader strategy to consolidate a diverse portfolio of premium fitness brands, currently including Wattbike, CLMBR, and FORME, to enhance its market position in the fragmented health and wellness sector. The all-stock transaction for the acquisition of Sportstech is structured with potential performance-based earnouts, designed to align shareholder interests and ensure a favorable valuation.

Expert Commentary

Ali Ahmad, founder and CEO of Sportstech, emphasized the significance of their recent performance:

The accelerating growth and achievement of our financial targets is gratifying for our team and is tangible proof of our strategy. This success reinforces our commitment to join the TRNR group because we have already accomplished so much in a short period of time and our shared ambitions are much larger.

Trent Ward, CEO of Interactive Strength, also shared his perspective on the ongoing acquisition process:

We are all working hard to accomplish all the steps required to close this transformational acquisition and look forward to sharing more about the deal and the exciting initiatives that are ahead for Sportstech.

Looking Ahead

As Interactive Strength Inc. and Sportstech Brands Holding GmbH move towards the formal closing of their acquisition, which is contingent upon regulatory approvals, market participants will closely monitor the integration process and its impact on the combined entity's financial performance. The continued acceleration of Sportstech's growth, particularly with expectations for further acceleration in the fourth quarter of 2025, is a key factor for TRNR's future profitability and market valuation within the competitive fitness equipment industry. Successful integration and sustained operational synergies will be crucial in realizing the full potential of this strategic union.