Newton Golf Company, Inc. reported net sales totaled $1.3 million for the second quarter of 2026, representing a 36 percent decline from $2.1 million in the prior-year quarter.

The decrease was said to be driven primarily by reduced manufacturing capacity at the company’s shaft production facility as it “implemented updates to certain existing shaft recipes and related production processes in conjunction with the introduction of updated versions of its Fast Motion driver shaft and Motion driver and fairway shafts.” Temporary carbon fiber supply constraints reportedly further limited production capacity during the quarter, and collectively, these factors reduced production throughput, delayed the shipment of certain customer orders, and resulted in lower sales.

“Subsequent to quarter end, we secured additional carbon fiber supply from Toray Japan while availability from Toray U.S. improved,” said Akinobu Yorihiro, interim CEO and chief technology officer, Newton Golf. “As manufacturing capacity and raw material availability improved, we began selectively resuming marketing initiatives in late July 2026 and increasing production of our updated 2.0 shaft products. Initial results from the resumed marketing activity have been encouraging; however, marketing activity remains below historical levels as we transition to a new marketing agency and have not yet fully ramped paid media expenditures.”

Yorihiro added, “By the beginning of August, product shipment times had improved to within seven business days, and we had substantially fulfilled the delayed orders represented by the approximately $1.2 million of customer deposits and open wholesale sales orders reported as of March 31, 2026.”

The company said it hired a new head of manufacturing in April with more than 20 years of production and operational leadership experience to support manufacturing scalability and future operational growth initiatives.

Newton also said it moderated marketing expenditures during the quarter to align customer demand with available manufacturing capacity, reduce its order backlog, and avoid generating demand beyond its ability to fulfill customer orders on a timely basis.

Yorihiro said the company intends to “increase marketing activity in a measured manner as production capacity and material availability support higher demand and timely order fulfillment.”

Profitability & Expenses Summary
Gross profit totaled $911,000, or 69.2 percent of net sales, in the second quarter of 2026, compared with $1.4 million, or 67.6 percent of net sales, in the prior-year quarter. The decrease in gross profit reportedly reflected lower sales volumes resulting from reduced production throughput during the company’s manufacturing transition and temporary carbon fiber supply constraints. Gross margin improved primarily due to a more favorable product and sales channel mix, including a higher proportion of direct-to-consumer sales, partially offset by manufacturing inefficiencies associated with the company’s ongoing manufacturing transition.

Direct-to-consumer customer deposits and open wholesale sales orders totaled approximately $0.5 million at June 30, 2026, compared with $1.2 million at March 31, 2026. The sequential decrease primarily reflected the fulfillment of previously delayed orders associated with the manufacturing transition period, while customer deposits during the quarter reflected continued advance payments and demand for Newton Golf products.

Total operating expenses decreased to $2.5 million for the second quarter of 2026, compared with $2.9 million in the prior-year quarter.

  • Selling, general and administrative expenses decreased approximately $0.7 million to $2.1 million, primarily due to lower sales and marketing costs, partially offset by higher manufacturing costs classified as operating expenses due to reduced production throughput and resulting idle capacity associated with the manufacturing transition, and higher stock-based compensation expense.
  • Research and development expenses increased to $0.3 million from $0.1 million, primarily due to overtime and travel costs associated with the manufacturing transition and manufacturing labor reclassified to research and development to reflect work performed on product and manufacturing process improvements.

The net loss for the second quarter of 2026 totaled $2.3 million, or a net loss of 49 cents per share, compared with a net loss of $1.5 million, or a net loss of 34 cents per share, in the prior-year quarter. The increase was said to be primarily attributable to a higher operating loss and an increase in the non-cash loss from the change in fair value of warrant liabilities.

Balance Sheet Summary
Cash and cash equivalents totaled $0.4 million at June 30, 2026, compared with $1.3 million at December 31, 2025. During the six months ended June 30, 2026, the company issued an aggregate principal amount of $2.25 million of convertible promissory notes pursuant to its securities purchase agreement, with net proceeds used for working capital and general corporate purposes.

Subsequent to quarter end, the company entered into a $5.0 million senior secured revolving credit facility and completed the exchange of approximately $2.3 million of outstanding convertible promissory notes, including accrued interest, for Series A Convertible Preferred Stock, and completed a private placement financing for aggregate gross proceeds of approximately $1.0 million, resulting in net proceeds of approximately $0.9 million. The revolving credit facility increased available liquidity and financial flexibility, while the note exchange reduced outstanding indebtedness and increased stockholders’ equity.

Pro Player Expansion
Professional adoption continued to expand, with more than 77 professional golfers putting Newton Motion and Fast Motion shafts in play across PGA Tour, PGA Tour Champions, LPGA, and Korn Ferry Tours as of the end of the second quarter of 2026, up from more than 60 as of the end the first quarter of 2026.

“The updated products have experienced strong initial professional adoption, including significant conversion from prior-generation shafts and recent adoption of the updated Motion fairway wood shaft by multiple players on the PGA Tour Champions,” added Yorihiro.

Outlook
Yorihiro said the company’s priorities for the balance of 2026 and beyond are clear.

“We are focused on translating the operational improvements made during the manufacturing transition into higher production volumes, improved order fulfillment, stronger product consistency, tighter manufacturing tolerances, and a more scalable operating platform. We are also focused on scaling our direct-to-consumer and professional fitting channels, expanding international distribution, and preparing for the commercial launch of additional shaft products.

“We believe Newton Golf is now better positioned to convert customer demand into revenue as manufacturing throughput continues to improve, carbon fiber availability has improved, fulfillment activity has improved, and marketing initiatives have begun to resume in a measured manner. Our expanded professional adoption, broader fitter network, improved supply position and upcoming product launches provide several opportunities to support broader adoption of our physics-driven shaft platform.

“While we expect to require additional capital to support ongoing operations and growth initiatives, we believe the actions taken during and after the quarter have improved our liquidity and capital structure and better position Newton Golf to support its ongoing operations and growth initiatives.”

Image courtesy Newton Golf