TRNR Stock Plunges 40% on Reverse Split Plan

Sharp Decline Follows Split Announcement

Interactive Strength Inc. stock, ticker TRNR, experienced a 40 percent drop following the company's announcement of a 1-for-10 reverse stock split. This action is set to become effective on February 24, 2026.

The primary goal is to regain compliance with the Nasdaq Capital Market's minimum bid price requirement of one dollar per share.

Overview of the Corporate Action

The reverse stock split will reduce the number of outstanding shares from approximately 14.3 million to about 1.4 million. The company's common stock will continue to trade under the symbol TRNR but will receive a new CUSIP number.

Stockholders approved the measure at the annual meeting on September 26, 2025, with the final ratio approved by the board on February 6, 2026.

Market Reaction and Shareholder Impact

The market's immediate response was significantly negative, reflected in the sharp stock price decline. For shareholders, proportionate adjustments will be made to outstanding equity awards and warrants.

Positions held electronically will adjust automatically, and cash payments will be issued for any resulting fractional shares.

Summary and Outlook

This reverse stock split is a strategic move by Interactive Strength to maintain its Nasdaq listing. The market's reaction highlights investor concern regarding the company's financial health. Future performance will depend on the company's ability to translate this technical maneuver into fundamental business improvements.

FAQ

Q: Why did Interactive Strength stock price drop?
A: The stock price fell 40 percent after the company announced a 1-for-10 reverse stock split.

Q: What is the main reason for the reverse stock split?
A: The split is intended to increase the stock's trading price to meet Nasdaq's minimum one dollar bid price requirement and avoid delisting.

Source: Investing.com