TruGolf Holdings, Inc. reported sales of $5.4 million for the 2025 first quarter, a 7.5 percent increase compared to 2024 first quarter sales of $5.0 million.

“2025 got off to a solid start, and we expect the sales cadence to improve over the course of the year, driven by new product introductions,” offered company CEO Chris Jones. Management’s attention has also focused on addressing the previously reported Nasdaq listing deficiencies. The company has announced a plan that will significantly reduce debt on its balance sheet and increase shareholder equity. This plan has been presented at a Nasdaq Listing Qualifications hearing on May 15, and we expect to receive their determination in the near term.”

Gross margin for the quarter improved to 68.0 percent of net sales, up 7 full percentage points compared to 61.0 percent in the 2024 first quarter.

Operating expenses increased by 22.5 percent, or $0.9 million, year-over-year, said to be driven by higher SG&A costs arising from higher third-party installation expenses, increased marketing costs and higher professional fees.

The loss from operations expanded 30.7 percent to $1.2 million compared to a $0.9 million loss in Q1 2024.

Interest expense jumped by $1.1 million as $1.7 million in principal amount of convertible notes and the company’s $1.1 million associated accrued and make-whole interest converted to shares and its full interest costs were recognized in the conversion period.

TruGolf Holdings, Inc. entered into agreements with its existing noteholders to exchange all its outstanding convertible notes into a newly created Series A Preferred Stock. In addition, the common stock warrants previously issued with the convertible notes were exchanged for a combination of newly created Series A Preferred Stock and warrants to purchase additional Series A Preferred Stock, which, if fully exercised in the sole discretion of the investors, would result in an additional $15.1 million in gross proceeds to the company.

In addition, the three founders of TruGolf agreed to convert existing dividends owed to them into a combination of Class A common stock and Class B common stock. Upon execution of the exchange agreement, the ability for the noteholders to invest in further tranches of debt was terminated, and upon the closing of these note exchange transactions, approximately $9.3 million in outstanding debt will be eliminated. The company said these actions are part of an effort by TruGolf Holdings, Inc., to improve the capital structure and reduce the debt on its balance sheet to meet the NASDAQ’s continued listing requirements.

The exchange of the convertible notes and the conversion of the Series A Preferred Stock is subject to certain conditions, including the receipt of shareholder approval. The company intends to hold a shareholder vote in connection with such required approval in the future.

Cash flow used in operations was said to be ~approximately $0.5 million in the first quarter of 2025, versus a generation of $2.7 million in 2024’s first quarter, with the difference resulting from a growth in inventory in the 2025 period, as well as the greater net loss for the period.

The net loss at the provider of golf simulator software and hardware reportedly doubled to a loss of $2.6 million, or a loss of 9 cents per share, in Q1, compared to a net loss of $1.3 million, or 22 cents per diluted share, in the 2024 Q1 period, said to be driven largely by recognition of interest expenses associated with the conversion of convertible notes in the period.

CEO Jones continued, “We look forward to further growth in the business as we continue to innovate in creating the best virtual golf ecosystem in the market. We expect the first franchise locations to open over the next 90 days, with the associated delivery of TruGolf hardware and software solutions. We are optimistic that new products expected to launch in the coming months will be well received.”

As part of the franchisee expansion, TruGolf Links Franchising, LLC, wholly owned by TruGolf Holdings, Inc., has signed its newest franchisee, Giovanni “Gio” Dinsay, shown right, in Long Island, NY. With over 27 years of experience in physical therapy and rehab, Gio has “built a reputation as a visionary in the wellness space,” said TruGolf. His private practice, founded 17 years ago, has grown from one location to 20 outpatient clinics on Long Island and Queens. Known for his strong connections within the orthopedic and chiropractic communities, TruGolf said it expects Gio “to bring a trusted voice and proven leadership to TruGolf Links’ strategic expansion with its first presence in New York.”

“I’ve always looked for innovative ways to support physical health and performance,” said Dinsay. “Partnering with TruGolf Links allows me to bring that philosophy into an entirely new arena—one that aligns performance, recreation and rehabilitation in a powerful way.”

Images courtesy TruGolf Links Franchising, LLC