The Camarillo-based golf shaft innovator is scaling fast through direct-to-consumer and professional fitting channels – but margin compression, a cash constraint and a leadership change cloud the picture.
Newton Golf Company (NASDAQ: NWTG) posted full-year 2025 net sales of $8.1 million, a 136 percent increase from $3.4 million in 2024, driven by its direct-to-consumer (DTC) channel and a rapidly expanding professional club fitter network. The results, published March 31, confirm the company’s fastest-growing year since rebranding from Sacks Parente — while also exposing the cost of that pace.
Total operating expenses rose to $12.1 million from $7.3 million in 2024, a 66 percent increase, reflecting higher marketing spend, personnel costs and investments in enterprise systems. Gross profit margin contracted to 56 percent of net sales from 66 percent the previous year, with the company attributing the compression to labor costs incurred as production scaled.
| $ | 2025 | 2024 | Fav / (unfav) |
|---|---|---|---|
| Net sales | $8,135,000 | $3,445,000 | $4,690,000 |
| Cost of goods sold | 3,581,000 | 1,171,000 | (2,410,000) |
| Gross profit | $4,554,000 | $2,274,000 | $2,280,000 |
| Operating expenses | |||
| Selling, general and administrative | 11,323,000 | 6,509,000 | (4,814,000) |
| Research and development | 779,000 | 743,000 | (36,000) |
| Total operating expenses | 12,102,000 | 7,252,000 | (4,850,000) |
| Loss from operations | $(7,548,000) | $(4,978,000) | $(2,570,000) |
| Other income (expense), net | |||
| Interest income, net | 99,000 | 161,000 | (62,000) |
| Financing costs | — | (6,913,000) | 6,913,000 |
| Change in fair value of warrant liabilities | 1,429,000 | (22,000) | 1,451,000 |
| Net loss | $(6,020,000) | $(11,752,000) | $5,732,000 |
A compressed fourth quarter
The fourth quarter sharpened the profitability picture. Q4 net sales reached $2.3 million, up 112 percent year-over-year, but gross profit fell to just 25 percent of revenue — compared to 72 percent in Q4 2024. Management attributed the contraction to a combination of factors: higher labor costs, including overtime and temporary staffing taken on to meet demand, and an inventory adjustment resulting from bill-of-materials errors that have since been corrected. For the full year, the net loss narrowed to $6.0 million from $11.8 million in 2024, though the prior-year figure was heavily inflated by one-off financing costs that inflated the loss per share during a period when the share count was also substantially lower.
DTC dominance, professional channel gains
The DTC channel accounted for 91.4 percent of total revenue in 2025, with DTC sales up 157 percent to $7.4 million. Repeat customers represented 26.7 percent of gross DTC orders, up 36 percent from 2024. Newton Golf also expanded its professional club fitter network to approximately 230 locations — an increase of 130 percent year-over-year — and ranked as the top-selling shaft brand for both drivers and fairway woods at Club Champion, a premium multi-location fitting retailer in the US. More than 60 professional golfers across the PGA Tour Champions, LPGA and Korn Ferry Tour used Newton shafts in 2025, more than double the prior-year count.
Platform expansion and OEM pipeline
The company continued developing its Newton Motion shaft platform, introducing the Fast Motion driver shaft — its best-selling product of 2025 — and presenting fairway wood and hybrid configurations at the 2026 PGA Show in January. A proprietary “dot system” replaces traditional flex designations with a numerical framework designed to simplify fitting across club types and increase shaft placements per golfer.
Management disclosed early-stage testing engagement with major original equipment manufacturers (OEMs), including tour-level validation programs, though no commercial supply agreements have been finalized. An exclusive distribution agreement with Voice Caddie (VC Inc.) for South Korea was also announced, alongside a dedicated Japanese e-commerce platform.
Leadership change and near-term financing
The results were accompanied by a governance disclosure. Co-Founder and Chief Technology Officer Akinobu Yorihiro was appointed Interim Chief Executive Officer effective March 27, following the termination of Greg Campbell, who will remain on the board. Director Brett Hoge was appointed Chairman. The company said a permanent CEO search is underway.
To bridge its cash position, Newton Golf completed the first closing of a securities purchase agreement on March 16, issuing a $500,000 convertible note at 10 percent per annum maturing in 18 months, plus warrants. The agreement provides for up to $2.0 million in convertible notes in total.
Negative market reaction
The market response to the March 31 report was negative. The stock fell approximately 6 percent in after-hours trading on the earnings miss, and remained under pressure at around $1.40 by the close of April 1. The reaction reflects a broader investor concern: the cash burn relative to cash on hand. With just $1.3 million in reserves at year-end, Newton Golf has limited runway — a tension that the headline revenue growth rate does not fully resolve.
The stock has shed roughly 94 percent of its value over the trailing 12 months, suggesting the market has yet to be persuaded that the company’s aggressive scaling strategy offers a clear path to profitability. Analyst consensus for FY2026 projects revenues of approximately $13 million and an EPS improvement to -$0.06, embedding a “scale-into-profitability” expectation that management will need to validate with Q1 results in May.
