Newton Golf Company, Inc. Annual Report: A Simple Breakdown

I’ve put together this guide to help you understand how Newton Golf performed this year. My goal is to explain their business strategy clearly so you can decide if this company fits your portfolio without wading through complex filings.

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1. What does this company do?

Newton Golf designs and sells premium golf equipment, focusing on high-performance shafts and putters. They have shifted their strategy to focus almost entirely on their "Newton Motion" shaft line. These shafts use proprietary technology to improve ball speed and launch. By manufacturing in St. Joseph, Missouri, they control quality and maintain a 45% profit margin on shafts. This local production also helps them avoid the supply chain delays common with overseas factories.

2. Financial performance: The "Good" and the "Bad"

The company is currently balancing rapid growth against the need to survive.

• The Good: Revenue is growing quickly. They brought in $8.1 million in 2025, up 136% from $3.4 million in 2024. Their shafts are popular, with over 60 professionals using them on tour. Because 91% of their sales are direct-to-consumer, they keep the full retail profit instead of sharing it with stores.
• The Bad: Even with higher sales, the company is losing money. They spent $12.1 million on operations, including $4.2 million on marketing. This led to an operating loss of $7.5 million. While their $6 million net loss was better than the previous year’s $11.7 million loss, this was mostly because they didn't repeat the large, one-time debt costs from 2024.

3. Major wins and challenges

• Product Growth: The "Newton Motion" line drives 99% of their revenue. To keep growing, they plan to launch fairway woods and hybrids in 2026. This should increase the average order value beyond the current $350 per shaft.
• Stock Market Moves: To stay listed on the Nasdaq, they performed two reverse stock splits (1-for-10 in 2024 and 1-for-30 in 2025). These moves combine existing shares into fewer, higher-priced ones to meet the $1.00 minimum price requirement. They do not change the actual value of the business.

4. Key risks: What could hurt your investment?

• The "Going Concern" Warning: Auditors have warned that the company may not have enough money to operate for the next 12 months. They burn about $500,000 in cash monthly and recently took a high-interest loan from a director to stay afloat.
• Dilution: Because they need cash, they will likely issue more shares. This reduces your ownership percentage and can lower the stock price.
• Nasdaq Delisting: Their equity is low at $1.1 million. If they cannot meet the $2.5 million minimum requirement or keep their share price above $1.00, they risk being moved to the OTC markets, which would make it harder to trade the stock.
• High Costs: Being a public company costs $850,000 annually in fees. They need to reach $15 million in annual revenue to cover these costs and break even.

5. Future outlook

Management is in a "prove it" phase. They are banking on 2026 product launches to scale the business. They must increase manufacturing capacity while lowering the $85 it costs to acquire each new customer—all before their cash runs out.

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Investor Takeaway: Newton Golf is a high-growth, high-risk play. They have a product that golfers clearly want, but their survival depends on reaching profitability before their current cash reserves are exhausted. If you are considering this stock, keep a close eye on their quarterly cash burn and their ability to successfully launch their new product lines in 2026.