Newton Golf (NASDAQ:NWTG) reported a first-quarter revenue decline as manufacturing changes temporarily slowed production and delayed order fulfillment, but management said demand for its golf shaft products remained strong and that delayed shipments are expected to convert into revenue as fulfillment improves.
Interim Chief Executive Officer and Chief Technology Officer Aki Yorihiro said the company remains in the early stages of scaling its Newton Motion Shaft platform across additional product categories, fitting channels, retail relationships and international distribution. He said strategic initiatives during the quarter were intended to support long-term growth, production scalability and broader market adoption, but temporarily affected shipment timing and near-term financial performance.
Revenue Falls as Production Changes Weigh on Fulfillment
Chief Financial Officer and Chief Operating Officer Jeff Clayborne said first-quarter revenue decreased 18% to $1 million. The decline primarily reflected “temporarily reduced manufacturing capacity and delayed order fulfillment” tied to operational initiatives implemented during the quarter.
Gross profit totaled $628,000, or 63% of net sales, compared with $852,000, or 70% of net sales, in the prior-year quarter. Clayborne said gross margin was temporarily affected by lower production volumes, which reduced fixed-cost absorption and manufacturing utilization.
Total operating expenses rose 15% to $3.2 million. Clayborne said the increase primarily reflected about $0.2 million of bonus accruals, higher labor and manufacturing-related costs associated with temporary production inefficiencies, and research and development activities supporting operational scaling initiatives. Those increases were partly offset by expense reductions, including about $0.2 million in sales and marketing expenses and about $0.1 million in professional service expenses.
Net loss for the quarter totaled $2.7 million, or $0.58 per share, compared with a net loss of $0.5 million, or $0.55 per share, in the prior-year period.
Newton Golf ended the quarter with $593,000 in cash and cash equivalents. During the quarter, the company completed an initial $500,000 convertible note closing under a previously disclosed securities purchase agreement, with a fixed conversion price of $1.60 per share and warrants to purchase 50,000 shares at $1.75 per share. After quarter-end, the company issued an additional $850,000 of convertible promissory notes to unrelated third-party investors under the same financing agreement.
Clayborne said the financings, together with the company’s existing at-the-market facility, provide additional flexibility to support working capital needs, operational scaling initiatives and future growth opportunities.
Backlog, Lead Times and Production Capacity
During the question-and-answer portion of the call, Clayborne said the company’s current lead time for ordering a shaft is about six to eight weeks, factoring in the existing backlog and new orders. Customers already in the backlog are expected to receive shafts sooner than that, he said.
Clayborne also said roughly $300,000 of orders had been canceled from an initial backlog of about $1.5 million, leaving approximately $1.2 million. He characterized the roughly 20% cancellation rate as evidence of continued demand despite delays.
Asked about production capacity, Clayborne said the company’s facility has capacity for more than 200,000 shafts annually if it staggers additional shifts. Without adding resources, he said steady-state capacity is currently between 60,000 and 70,000 shafts per year. The company sold just over 40,000 shafts last year, he said.
Clayborne said the company’s goal is to eventually ship products within 48 hours of receiving an order by maintaining one to two months of inventory. He said Newton Golf hired a manufacturing executive in April with more than 25 years of experience to support production scaling and future product launches.
Yorihiro said the manufacturing issues encountered during the quarter have been resolved. He said the company chose to make broader improvements rather than temporary fixes because it wanted higher-quality production output in 2026, particularly as it pursues OEM, Japanese and South Korean opportunities.
Distribution and Product Expansion
Management highlighted expansion in both domestic and international channels. Yorihiro said Newton Golf strengthened its international presence through an exclusive Voice Caddie distribution agreement in South Korea, which he described as one of the world’s leading premium golf equipment markets. The partnership included a $136,000 opening order that exceeded the minimum order requirement. The company expects to recognize that revenue in the second quarter of 2026.
Clayborne said payment for the Voice Caddie order was “in motion” and expected in the second quarter. He added that the distributor had already exceeded its minimum and that he expects another reorder later this year.
The company also expanded its professional club fitter network to about 235 accounts, up 99% from the first quarter of 2025. Yorihiro said this growth strengthens the company’s presence in the premium fitting market and broadens access to the Newton Motion platform.
At the 2026 PGA Show, Newton Golf introduced Fast Motion fairway wood and hybrid shafts, which are expected to launch commercially in the third quarter of 2026. Yorihiro said the new products extend the Newton Motion platform and the company’s DOT fitting system across more club categories, supporting a multi-club fitting approach.
Yorihiro said more than 60 professional golfers currently play Newton Motion and Fast Motion shafts across the PGA Tour, PGA Tour Champions, LPGA and Korn Ferry Tour. In response to an analyst question, he said roughly another dozen players are using the shafts for the first time this year, though he said the company could not name many of them because it does not yet have name, image and likeness relationships in place.
OEM Discussions and Strategic Priorities
Asked about potential relationships with original equipment manufacturers, Yorihiro said Newton Golf is speaking with multiple OEMs, including one “very large” company. He said Newton Golf is “pretty far along” with that OEM, including involvement in its headquarters, national fitting program and tour program, where Newton shafts are carried by the OEM’s tour van.
Yorihiro said the first stage of OEM engagement may involve entering fitting programs at main locations, satellite locations or national fitter networks. He also said the company is in discussions with another OEM that could potentially include Newton shafts in a web offering.
Clayborne said the company made factory adjustments in the first quarter partly to support progress with OEMs during the current golf season.
Management also addressed the company’s CEO search. Clayborne said Newton Golf is actively looking for a new CEO and has “quite a few really good candidates.” Yorihiro said the company is considering its long-term strategy as it evaluates the profile of the right candidate.
On Nasdaq listing compliance, Clayborne said he planned to submit a plan to Nasdaq the following week and expected to hear back within a couple of weeks after that. He said maintaining the company’s listing is critical, but added that management is focused on financing terms it views as acceptable for existing investors.
Although Newton Golf is not providing formal guidance, Yorihiro said the company currently anticipates that 2026 will represent another record year, following record net sales growth of 136% in 2025.
About Newton Golf (NASDAQ:NWTG)
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.
