Newton Golf Company (NWTG) investor relations material

Executive summary

• Q1 2026 revenue declined 18% year-over-year to $991,000–$1 million due to temporary manufacturing disruptions and transition activities, impacting shipment timing and near-term financial performance.

• Customer demand remained strong, with $1.2 million in deposits and open sales orders at quarter end, reflecting delayed shipments and robust market interest.

• Launched Fast Motion fairway wood and hybrid shafts at the 2026 PGA Show, with commercial launch expected in Q3 2026, extending the Newton Motion platform.

• Expanded professional club fitter network by 99% year-over-year to 235 accounts, strengthening premium market presence.

• Over 60 professional golfers now use Newton shafts across major tours, supporting brand awareness and adoption.

Financial highlights

• Net sales for Q1 2026 were $991,000–$1 million, down from $1.2 million in Q1 2025, mainly due to reduced manufacturing capacity.

• Gross profit was $628,000 (63% margin), down from $852,000 (70%) year-over-year, impacted by lower production volumes.

• Operating expenses increased 15% to $3.2 million, driven by bonus accruals, higher labor, manufacturing, and R&D costs.

• Net loss widened to $2.7 million (or $0.58 per share), from $0.5 million (or $0.55 per share) in Q1 2025.

• Cash and cash equivalents totaled $593,000 at March 31, 2026, with a stockholders' deficit of $1,521,000.

Outlook and guidance

• Management expects operational scaling and manufacturing transition activities to be largely completed in Q2 2026, improving efficiency and fulfillment.

• Anticipates converting $1.2 million in customer deposits and open sales orders into revenue as fulfillment improves.

• Expects 2026 to be another record year, building on 136% net sales growth in 2025, though no formal guidance provided.

• Additional capital will be required to fund operations and growth; management is evaluating financing alternatives and plans to submit a plan to Nasdaq for compliance.