{"url_path":"/sec/trnr/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 Quantitative and Qualitative Disclosure About Market Risk","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-20","source_url":"https://www.sec.gov/Archives/edgar/data/1785056/0001193125-26-232775-index.html","accession_number":"0001193125-26-232775","cik":"0001785056","ticker":"TRNR","issuer_name":"Interactive Strength, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1785056/0001193125-26-232775-index.html","primary_entity_key":"0001785056","primary_entity_name":"Interactive Strength, Inc."},"word_count":382,"has_tables":true,"body_markdown":"##  \n\nItem 3. Quantitative and Qualitative Disclosure About Market Risk\n\nForeign Currency Risk\n\nTo date, most of our inventory purchases have been denominated in U.S. dollars. A portion of our operating expenses are incurred outside the United States and are denominated in foreign currencies, which are also subject to fluctuations due to changes in foreign currency exchange rates. In addition, our suppliers incur many costs, including labor and supply costs, in other currencies. While we are not currently contractually obligated to pay increased costs due to changes in exchange rates, to the extent that exchange rates move unfavorably for our suppliers, they may seek to pass these additional costs on to us, which could have a material impact on our gross margins. Our operating results and cash flows are, therefore, subject to fluctuations due to changes in foreign currency exchange rates. However, we believe that the exposure to foreign currency fluctuation from operating expenses is relatively small at this time as the related costs do not constitute a significant portion of our total expenses. To date, we have not entered into derivatives or hedging transactions, as our exposure to foreign currency exchange rates has historically been partially hedged as our foreign currency denominated inflows have covered our foreign currency denominated expenses. However, we may enter into derivative or hedging transactions in the future if our exposure to foreign currency should become more significant.\n\nInterest rate risk\n\nSubstantially all of our outstanding debt instruments have fixed interest rates. As a result, a hypothetical 100 basis point increase in interest rates would not result in a material impact on our cash flows, liquidity or results of operations for the three months ended March 31, 2026 and 2025.\n\nInflation Risk\n\nWhile inflation has contributed to increased manufacturing and supplier costs, higher component prices and elevated employee compensation expenses for the three months ended March 31, 2026 and 2025, we do not believe that these inflationary pressures have had a material effect on our business, financial condition or results of operations. However, if our costs become subject to more significant or sustained inflationary pressures, we may not be able to fully offset such higher costs through price increases or other measures. Our inability or failure to do so could harm our business, financial condition, and operating results."}