Newton Golf (NASDAQ:NWTG) Posts Quarterly 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 business had revenue of $0.99 million during the quarter. Newton Golf had a negative net margin of 74.01% and a negative return on equity of 165.40%.

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

Shares of NASDAQ:NWTG remained flat at $1.11 on Thursday. The stock had a trading volume of 36,144 shares, compared to its average volume of 53,010. The firm has a market capitalization of $5.09 million, a P/E ratio of -0.63 and a beta of 2.72. The business has a 50-day moving average of $1.39 and a 200 day moving average of $1.48. Newton Golf has a twelve month low of $0.82 and a twelve month high of $2.57.

Hedge Funds Weigh In On Newton Golf

Several institutional investors and hedge funds have recently bought and sold shares of the stock. DRW Securities LLC purchased a new position in shares of Newton Golf in the 4th quarter worth $27,000. Geode Capital Management LLC raised its holdings in shares of Newton Golf by 45.6% during the 4th quarter. Geode Capital Management LLC now owns 41,530 shares of the company’s stock valued at $62,000 after buying an additional 13,001 shares during the period. Finally, Virtu Financial LLC acquired a new position in shares of Newton Golf during the third quarter worth $28,000. Institutional investors and hedge funds own 0.49% of the company’s stock.

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.