Newton Golf (NASDAQ:NWTG) Posts Earnings Results

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

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 Down 1.8%

Shares of NASDAQ NWTG traded down $0.02 during midday trading on Friday, reaching $1.09. The company’s stock had a trading volume of 97,223 shares, compared to its average volume of 53,370. Newton Golf has a fifty-two week low of $0.82 and a fifty-two week high of $2.23. The business’s 50 day moving average price is $1.38 and its two-hundred day moving average price is $1.47.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Geode Capital Management LLC increased its stake in Newton Golf by 45.6% in the fourth quarter. Geode Capital Management LLC now owns 41,530 shares of the company’s stock valued at $62,000 after acquiring an additional 13,001 shares during the last quarter. Virtu Financial LLC bought a new position in Newton Golf in the third quarter valued at approximately $28,000. Finally, DRW Securities LLC bought a new position in Newton Golf in the fourth quarter valued at approximately $27,000. 0.49% of the stock is owned by institutional investors.

About Newton Golf

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.