Newton Golf Company, Inc. reported revenue in the first quarter totaled $1.0 million, down 18 percent from $1.2 million in the prior-year quarter due to temporarily reduced manufacturing capacity and delayed order fulfillment associated with operational initiatives implemented during the quarter to support future growth opportunities.

Direct-to-consumer (DTC) customer deposits totaled $0.9 million and open wholesale sales orders totaled $0.3 million at quarter end, which collectively represent $1.2 million of expected future revenue upon shipment of the related orders. The increase in customer deposits reflects continued customer demand, including advance payments associated with orders delayed during the manufacturing transition period.

Gross profit totaled $628,000, or 63 percent of net sales, in the first quarter as compared to $852,000, or 70 percent of net sales, in the prior-year quarter. The decrease is primarily attributed to temporary production inefficiencies during the quarter, which adversely affected gross profit as fixed production costs were absorbed over lower production volumes.

Total operating expenses increased 15 percent to $3.2 million compared to $2.8 million in the prior-year quarter. The increase primarily reflected approximately $0.2 million of bonus accruals and higher labor and manufacturing-related costs associated with temporary production inefficiencies during the quarter, as well as research and development activities supporting operational scaling initiatives.

Sales and marketing expenses were reduced during the quarter as the company aligned demand generation activities with temporarily reduced manufacturing capacity rather than underlying demand conditions.

The increase in total operating expenses was partially offset by a reduction of approximately $0.2 million in sales and marketing expenses and approximately $0.1 million in professional services expenses.

Net loss for the first quarter of 2026 totaled $2.7 million, or 58 cents a share, compared to a net loss of $0.5 million, or 5 cents,  in the prior-year quarter.

Management Commentary

“During the quarter, we executed operational and manufacturing initiatives intended to support long-term production scalability, product consistency, and future growth opportunities as the company continues expanding the Newton Motion platform across additional product categories and distribution channels,” said Newton Golf interim CEO and CTO, Akinobu Yorihiro.

“While these initiatives temporarily impacted shipment timing and near-term financial performance during the quarter, we believe these investments strengthened the company’s manufacturing foundation and better positioned us to support future growth more efficiently as manufacturing utilization improves.

“As of quarter end, the company had approximately $1.2 million of expected future revenue represented by customer deposits and open wholesale sales orders associated with delayed shipments during the manufacturing transition period. We have already begun shipping these orders and expect fulfillment activities to continue improving during the current quarter.

“We also enhanced manufacturing management and operational planning processes to support the continued scaling of production operations. During the quarter, we expanded operational oversight within management and added additional manufacturing leadership experience to support production scaling initiatives, future product launches, and enhanced manufacturing execution.

“In April, we hired a new head of manufacturing with more than 20 years of production and operational leadership experience to support manufacturing scalability and future operational growth initiatives. Management believes the operational improvements implemented during the quarter further position the company to support higher-volume production requirements associated with larger distribution opportunities, including potential OEM and international channel relationships.

“At the 2026 PGA Show in January, we introduced the Fast Motion fairway wood shaft and hybrid shafts, which are expected to launch commercially in the third quarter of 2026. These product introductions expand the Newton Motion platform into additional club categories and further extend the company’s DOT fitting system across the golf bag. The DOT system is designed to provide golfers with consistent shaft fitting characteristics across driver, fairway wood, and hybrid configurations, which management believes may improve fitting consistency and increase multi-shaft adoption.

“Management believes expanding the Newton Motion platform into additional club categories may increase average revenue opportunities per customer and improve marketing efficiency by leveraging existing customer acquisition investments across a broader product lineup.

“More than 60 professional golfers currently play Newton Motion and Fast Motion shafts across PGA Tour, PGA Tour Champions, LPGA, and Korn Ferry Tours, supporting continued brand awareness and fitting adoption among golfers and professional club fitters.

“In addition to expanding our product lineup, we strengthened our international presence through an exclusive distribution agreement with VC Inc. (VOICE CADDIE) for wholesale and retail distribution in South Korea. VOICE CADDIE brings established distribution capabilities and market knowledge in one of the world’s leading premium golf equipment markets. We have received a $136,000 order from the distributor during the quarter, which was more than the minimum order requirement under the distribution partnership, and we expect revenue from this order to be realized in the second quarter of 2026.

“Looking ahead, we anticipate the operational scaling initiatives implemented during the quarter to be substantially completed during the current quarter. As fulfillment activities and production volumes normalize, we expect to benefit from improved manufacturing efficiencies, increased utilization, and more stable production planning. Management expects manufacturing utilization and production efficiency to improve as these initiatives are completed, which may support improved operating leverage in future periods.

“Management believes the operational initiatives completed during the quarter may support improved manufacturing leverage and scalability as production volumes increase and the company expands distribution across direct-to-consumer, professional fitting, retail, international, and potential OEM channels.

“We believe Newton Golf remains in the early stages of scaling its shaft platform across direct-to-consumer, professional fitting, retail, international, and potential OEM distribution channels.

“Following record net sales growth in 2025, we believe the company remains positioned to continue expanding brand awareness, product adoption, and distribution opportunities as fulfillment activities improve and new product introductions expand across additional club categories.

“While the operational initiatives implemented during the first quarter temporarily impacted near-term financial performance, management believes these investments strengthened the company’s operational foundation, enhanced production scalability, expanded the Newton Motion platform, and better positioned the company to support future growth opportunities across both existing and emerging distribution channels.

“Management also expects the expanded product lineup and broader distribution footprint to support higher revenue opportunities per customer as adoption of the Newton Motion platform continues to expand.”

Image courtesy Newton Golf