Interactive Strength Inc., trading as NASDAQ:TRNR, announced Wednesday it has entered a definitive agreement to purchase Brooklyn-based Ergatta Inc., a maker of game-based connected fitness equipment. The deal, detailed in a company press release, carries an enterprise value capped at $19.5 million. Half of that amount hinges on Ergatta hitting its 2026 EBITDA goals, with another 5% linked to 2027 results.

Ergatta expects to post more than $10 million in revenue next year, achieving roughly a 30% EBITDA margin. Subscriptions drive about 70% of its sales, and the company boasts monthly net retention above 98%. Upfront payment breaks down to $1.8 million in cash and $1.8 million to cover debt. Buyers will issue $5.3 million in equity, held until May 2027. Earnouts could add $9.8 million if 2026 targets are met, plus $1 million more in 2027.

“The founders of Ergatta have created a unique fitness experience and have built an attractive business that we expect to be accretive to TRNR immediately,” TRNR CEO Trent Ward said in the release. He highlighted plans to weave Ergatta’s gaming features into TRNR’s Wattbike and CLMBR brands. Post-deal, Ergatta’s founders and top managers will stay on, with contracts already in place.

The Austin company, which also owns the FORME brand, anticipates pro forma 2026 revenue topping $30 million after the purchase. TRNR projects Ergatta will deliver more cash flow in 2026 than the initial outlay. Closing is slated for the first quarter.

TRNR’s market cap sits at $2.04 million amid ongoing financial pressures, according to InvestingPro data. Separate announcements this week underscore momentum. Preliminary Q4 2025 revenue should clear $4.5 million, doubling the year-ago figure. Full-year 2025 pro forma sales are forecast above $20 million, up from about $5 million in 2024.

The company raised its at-the-market offering cap to $2.61 million via a January 23, 2026, prospectus supplement. It issued over 2.1 million common shares after converting part of a note. A senior secured convertible note’s due date moved from January 30, 2026, to September 26, 2027.

TRNR also refreshed its Investor FAQ to cover the Q3 2025 shareholder letter, a pending Sportstech acquisition timeline, and 2025 revenue projections exceeding $80 million. Those disclosures spotlight operating gains and product integrations.