Newton Golf (NASDAQ:NWTG) Announces Earnings Results

Newton Golf (NASDAQ:NWTG) announced its quarterly earnings results on Thursday. The company reported ($0.58) earnings per share (EPS) for the quarter, Zacks reports. The company had revenue of $0.99 million during the quarter. Newton Golf had a negative net margin of 103.02% and a negative return on equity of 292.57%.

Here are the key takeaways from Newton Golf’s conference call:

• Q1 revenue fell 18% to $1.0 million as temporary manufacturing capacity constraints and delayed order fulfillment weighed on results. The company said the disruption was tied to investments made to support future growth.
• Profitability weakened sharply, with gross margin declining to 63% from 70% a year ago and net loss widening to $2.7 million, or $0.58 per share. Management attributed the pressure to lower production volumes, higher labor/manufacturing costs, and bonus accruals.
• Underlying demand remained strong, with about $1.2 million of customer deposits and open sales orders at quarter-end that management expects to convert into revenue as operations normalize. The company said only about $300,000 of roughly $1.5 million in initial orders were canceled.
• The company is expanding distribution and product breadth, including an exclusive Voice Caddie agreement in South Korea, growth in the professional fitter network to about 235 accounts, and upcoming Fast Motion fairway wood and hybrid shaft launches expected in Q3 2026. Management believes this supports a multi-club platform strategy and higher revenue per golfer.
• Newton Golf is investing in factory scaling and financing flexibility, including hiring an experienced manufacturing executive, improving production planning, and raising capital through convertible notes plus its ATM facility. Management also said it is actively searching for a new CEO and plans to submit a Nasdaq compliance plan.

Newton Golf Stock Performance

NASDAQ NWTG traded down $0.02 on Friday, reaching $1.09. The company had a trading volume of 97,223 shares, compared to its average volume of 53,370. The firm’s 50 day moving average price is $1.38 and its 200 day moving average price is $1.47. Newton Golf has a 12 month low of $0.82 and a 12 month high of $2.23.

Institutional Trading of Newton Golf

A number of institutional investors and hedge funds have recently bought and sold shares of NWTG. DRW Securities LLC bought a new stake in Newton Golf in the 4th quarter valued at $27,000. Virtu Financial LLC bought a new stake in shares of Newton Golf in the 3rd quarter worth about $28,000. Finally, Geode Capital Management LLC increased its holdings in shares of Newton Golf by 45.6% in the 4th quarter. Geode Capital Management LLC now owns 41,530 shares of the company’s stock worth $62,000 after buying an additional 13,001 shares during the last quarter. 0.49% of the stock is currently owned by institutional investors.

Newton Golf Company Profile

Sacks Parente Golf, Inc (“SPG”) is a technology-forward golf company, with a growing portfolio of golf products, including putting instruments, golf shafts, golf grips, and other golf-related products. In April 2022, in consideration of our growth opportunities in shaft technologies, we expanded our manufacturing business to include advanced premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. We intend to manufacture and assemble substantially all products in the United States.