Newton Golf Company (NWTG) Q3 2026 earnings summary

Executive summary

• Q3 sales and 9M sales fell amid manufacturing transition, temporary carbon-fiber constraints and reduced marketing; production and marketing began recovering as supply improved.

• Updated 2.0 shafts saw initial professional-player adoption; Fast Motion fairway and hybrid shafts are expected to launch commercially in Q1 2027.

Financial highlights

• Q3 net sales were $1.368M vs. $2.582M YoY; gross profit was $820K vs. $1.734M, and operating loss was $1.332M vs. $1.504M.

• Q3 net loss was $1.239M vs. $1.580M; a noncash $302K warrant fair-value gain and lower operating expenses partly offset lower gross profit and higher financing costs.

• 9M net sales were $3.675M vs. $5.860M; gross profit was $2.359M vs. $3.985M, operating loss was $5.487M vs. $4.982M, and net loss was $6.176M vs. $3.625M.

• 9M operating cash use was $4.730M vs. $4.101M; investing cash use was $180K and financing cash provided was $4.125M.

Outlook and guidance

• A dedicated marketing campaign for 2.0 shafts was expected to begin in November 2026; marketing was resuming selectively with a focus on return on ad spend and customer-acquisition efficiency.

• Production plans include building inventory to improve availability, with a goal of shipping within two days of orders; additional performance metrics were expected in Q4 2026.

• Fast Motion fairway and hybrid shafts are expected to launch commercially in Q1 2027; potential project production and cash flows are excluded from current operating forecasts.

• Additional financing is expected to be required to support operations; management is evaluating equity financing and ATM sales while managing discretionary spending based on liquidity and performance.