Revenue Recognition

6 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue Recognition

4. Revenue Recognition

The Company’s primary source of revenue is substantially derived from the United States from sales of its Connected Fitness Products and related accessories and associated recurring Membership revenue, as well as from sales of personal training services recorded within Training revenue.

The Company determines revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer;

•Identification of the performance obligations in the contract;

•Determination of the transaction price;

•Allocation of the transaction price to the performance obligations in the contract; and

•Recognition of revenue when, or as, the Company satisfies a performance obligation.

Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company’s revenue is reported net of sales returns, discounts and incentives as a reduction of the transaction price.

The Company applies the practical expedient as per ASC 606-10-50-14 and does not disclose information related to remaining performance obligations due to their original expected terms being one year or less.

Connected Fitness Products

Connected Fitness Products include the Company’s portfolio of Connected Fitness Products and related accessories, delivery and installation services, and extended warranty agreements. The Company recognizes Connected Fitness Product revenue net of sales returns and discounts on the date the product has been delivered to the customer or at shipping point if the customer is responsible for shipping, except for extended warranty revenue which is recognized over the warranty period. The Company allows customers to return products within thirty days of purchase, as stated in its return policy.

Amounts paid for payment processing fees for credit card sales for Connected Fitness Products are included as a reduction to fitness product revenue in the Company’s condensed consolidated statements of operations and comprehensive loss.

Membership

The Company’s memberships provide unlimited access to content in its library of on-demand fitness classes. The Company’s memberships are offered on a month-to-month basis.

Amounts paid for membership fees are included within deferred revenue on the Company’s condensed consolidated balance sheets and recognized ratably over the membership term. The Company records payment processing fees for its monthly membership charges within cost of membership in the Company’s condensed consolidated statements of operations and comprehensive loss.

Training

The Company’s training services are personal training services delivered through the Connected Fitness Products, third-party mobile devices and in-studio classes. Training revenue is recognized at the time the services are delivered.

Standard Product Warranty

The Company offers a standard product warranty that its Connected Fitness Products and related accessories will operate under normal, non-commercial use for a period of one year which covers the touchscreen, frame and all incorporated elements, and related accessories from the date of original delivery. The Company has the obligation, at its option, to either repair or replace the defective product. At the time revenue is recognized, an estimate of future warranty costs are recorded as a component of cost of revenue. Factors that affect the warranty obligation include historical as well as current product failure rates, service delivery costs incurred in correcting product failures, and warranty policies and business practices.

The Company also offers the option for customers in some markets to purchase a third-party extended warranty and service contract that extends or enhances the technical support, parts, and labor coverage offered as part of the base warranty included with the Connected Fitness Product for an additional period of 24 to 48 months.

For third-party extended warranty service sold along with the Company’s Connected Fitness Products, the Company does not obtain control of the warranty before transferring it to the customers. Therefore, the Company accounts for revenue related to the fees paid to the third-party extended warranty provider on a net basis, by recognizing only the net commission it retains. The Company considers multiple factors when determining whether it obtains control of third-party products including, but not limited to, evaluating if it can establish the price of the product, retains inventory risk for tangible products or has the responsibility for ensuring acceptability of the product.

The Company sells connected fitness equipment and digital fitness services across Business to Business ("B2B") and Business to Customer ("B2C") channels in the United States. The Company also sells fitness equipment across B2B channel in Europe and Asia.

The following table presents a summary of total revenues by geographic location:

	Three Months Ended June 30, 2025						Six Months Ended June 30, 2025
(in thousands)	CLMBR		FORME		Total		CLMBR		FORME		Total
Revenue
United States
Fitness Product Revenue	$	790	$	147	$	937	$	1,778	$	210	$	1,988
Membership Revenue		127		37		164		265		75		340
Training Revenue		80		38		118		171		77		248
Total Revenue	$	997	$	222	$	1,219	$	2,214	$	362	$	2,576

	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
(in thousands)	CLMBR		FORME		Total		CLMBR		FORME		Total
Revenue
United States
Fitness Product Revenue	$	175	$	83	$	258	$	175	$	136	$	311
Membership Revenue		160		47		207		269		93		362
Training Revenue		92		64		156		165		146		311
Total Revenue	$	427	$	194	$	621	$	609	$	375	$	984

The following table presents a summary of total revenues by product:

	Three Months Ended June 30, 2025				Six Months Ended June 30, 2025
	2025		2024		2025		2024
	(in thousands)				(in thousands)
CLMBR	$	790	$	175	$	1,778	$	175
FORME		147		83		210		136
Total Fitness Product Revenue		937		258		1,988		311
CLMBR		127		160		265		269
FORME		37		47		75		93
Total Membership Revenue		164		207		340		362
CLMBR		80		92		171		165
FORME		38		64		77		146
Total Training Revenue		118		156		248		311
Total Revenue	$	1,219	$	621	$	2,576	$	984