Earnings call transcript: Newton Golf Q2 2025 sees revenue surge, stock dips

Newton Golf Co (NWTG) reported its Q2 2025 earnings, revealing a significant revenue increase but a notable net loss, causing a decline in its stock price. The company reported a revenue of $2.1 million, marking a 154% year-over-year increase, but posted a net loss of $1.5 million, translating to a $0.34 loss per share. The stock reacted negatively, falling 8.63% in regular trading and a further 0.93% in aftermarket trading. According to InvestingPro data, the company’s impressive 606.9% revenue growth over the last twelve months showcases its strong momentum, though analysts don’t expect profitability this year.

Key Takeaways

• Revenue increased by 154% YoY to $2.1 million.
• Net loss of $1.5 million, or $0.34 per share.
• Stock fell 8.63% in regular trading and 0.93% in aftermarket.
• Manufacturing capacity stands at 25 million units, with potential expansion.
• Full-year revenue guidance increased to $7-7.5 million.

Company Performance

Newton Golf demonstrated robust revenue growth in Q2 2025, driven by strong demand across its direct-to-consumer and professional channels. Despite this, the company reported a significant net loss, primarily due to high operating expenses. The firm is expanding its product line and manufacturing capacity to meet increasing demand, positioning itself as a competitive player in the golf equipment market. InvestingPro has identified 15 additional key investment insights for NWTG, including detailed analysis of its financial health score of 2.12 (FAIR) and comprehensive valuation metrics. Get access to the full Pro Research Report for deeper insights into Newton Golf’s market position and growth potential.

Financial Highlights

• Revenue: $2.1 million (↑154% YoY)
• First 6 Months Revenue: $3.3 million (↑182% YoY)
• Gross Profit: $1.4 million (↑186% YoY)
• Gross Margin: 67.6% (Q2), 69% (YTD)
• Operating Expenses: $2.9 million
• Net Loss: $1.5 million

Market Reaction

Newton Golf’s stock dropped 8.63% to close at $1.97, with a further 0.93% decline in aftermarket trading. This decline reflects investor concerns over the company’s continued losses despite strong revenue growth. The stock remains near its 52-week low, highlighting market skepticism. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting a $12 price target. The company maintains strong liquidity with a current ratio of 3.65 and more cash than debt on its balance sheet.

Outlook & Guidance

The company raised its full-year revenue guidance to $7-7.5 million, up by $500,000, signaling confidence in its growth trajectory. Newton Golf aims to achieve cash flow positivity by Q2 2026, with plans for international expansion and potential mergers and acquisitions.

Executive Commentary

CEO Greg emphasized the company’s undervaluation and technological differentiation, stating, "I think we’re extremely undervalued. I think there’s a huge amount of upside." CFO Jeff added, "We want to let the world know what we’re doing, then do it," highlighting their strategic focus on brand marketing and professional relationships.

Risks and Challenges

• High operating expenses leading to continued net losses.
• Market saturation and competition from established players like Fujikura.
• Potential supply chain disruptions impacting manufacturing.
• Economic uncertainties affecting consumer spending in the golf industry.

Newton Golf’s Q2 2025 performance showcases its potential for growth, yet challenges remain in achieving profitability and convincing the market of its long-term value.

Full transcript - Newton Golf Co (NWTG) Q2 2025:

Greg, CEO, Newton Golf: Thank you, Colin, and good afternoon, everyone. Q two was another breakout quarter for Newton Golf. Demand is strong across our channels with demand increasing for our motion and newly introduced fast motion shafts, increasing adoption among tour professionals, and deepening our relationships with global distributors. In q two, revenue increased a 154% year over year to 2,100,000.0 compared to $813,000 in Q2 twenty twenty four. For the first six months of 2025, revenue grew 182% to $3,300,000 up from $1,200,000 in the same period last year.

Gross profit for the quarter rose 186% to $1,400,000 with gross margin holding strong at 67.6%. Year to date gross profit increased 224% to $2,300,000 with gross margin expanding to 69%. This quarter, we reached a significant milestone. Newton shafts are now in play with more than 50 professionals across the PGA Tour Champions, LPGA and Korn Ferry Tours. Notably, Miguel Angel Jimenez secured his second PGA Tour Champions victory using our fast motion shaft, and we welcomed major champions, Bob Estes and Steve Fleish to our roster.

Internationally, we launched newtongolf.jp to better serve the growing Japanese market and expanded testing and distribution partnerships with fitters in Japan and Europe. Direct to consumer sales through newtongolfco.com remained strong, and our innovation is drawing industry buzz. Golf Magazine’s Chris McCormick named Newton one of the most exciting new shaft technologies in golf. As we move into the 2025, our priorities are clear. We need to scale up our operations to meet the new increasing demand, introduce new products, and further expand our retail and fitter partnerships.

We remain confident in our ability to deliver strong results for both players and shareholders. With that, I’ll turn it over to Jeff to walk through our financials. Jeff?

Jeff, CFO, Newton Golf: Thanks, Greg. It’s an exciting time to join Newton Golf as we build both financial momentum and market presence. For the three months ended 06/30/2025, revenue grew 154% year over year to 2,100,000 Gross profit grew 186% year over year to $1,400,000 This represents a gross margin of 68% versus the 60% we achieved in q two last year. For the 2025, revenue grew a 182% year over year to $3,300,000 Gross profit grew 224% year over year to $2,300,000 This represents gross margin of 69% versus the 60% we achieved in Q2 of last year. Operating expenses for Q2 were $2,900,000 compared to $1,700,000 at Q2 twenty twenty four.

For the six months ended 06/30/2025, operating expenses were $5,700,000 compared to $3,200,000 versus the same period in 2024. The change reflects increased investments in sales, marketing, and employee related costs to support growth, plus an increase in professional services. Net loss for the quarter was $1,500,000 or negative $0.34 per share compared to a net loss of $1,200,000 or negative $0.79 per share in Q2 twenty twenty four. Year to date, the net loss was $2,100,000 or negative $0.74 per share compared to a net loss of $2,400,000 or negative $1.61 per share in the first half of last year. We ended the quarter with $4,000,000 in cash and equivalents.

Based on the strength of our current pipeline and the momentum we built in the first half of the year, we are increasing our full year 2025 revenue guidance by $500,000 We are now projecting revenue be to be between $7,000,000 and $7,500,000 With that, I’ll turn it back to Colin to begin the q and a portion of today’s call.

Colin, Moderator/IR, Newton Golf: That concludes the presentation portion of today’s webcast. We’ll now open the call for questions. We’ll begin them with questions submitted in advance via email, and then we’ll open the floor to live questions from attendees. To submit a question, please click the q and a button at the bottom of your Zoom window and type your question into the box. You may choose to submit anonymously if you prefer.

I’ll turn it back over to you, Greg.

Greg, CEO, Newton Golf: Thanks, Colin.

Jeff, CFO, Newton Golf: So we got a few questions here. The first one is traditional iron shafts are typically epoxied in place, making custom upgrades difficult and costly. This seems like a major blind spot in the golf market. Are there plans for Newton to leverage its shaft technology for iron shafts, perhaps through a new line of irons with adaptive pull plug and play shaft options?

Greg, CEO, Newton Golf: That’s a great question. Our goal is to be on every club in the bag. So we wanna have a shaft on the driver, which we already have with both the motion and the newly introduced lighter, faster, fast motion shaft. The fairway woods, which we already have with the motion shaft for three, five, and seven woods, and we plan on introducing soon here the fast motion version of those fairway wood shafts. Then after that, we’re gonna do hybrid shafts.

Following that, long iron shafts, then iron shafts, then wedge shafts, and we already have putter shaft. Now the the the questioner raised a good point about irons are epoxied in, and that is true. So we would ship essentially a raw shaft. The customer would then go to a fitter to have the iron head and grip put on that shaft. That’s not uncommon because most people adjust their lie angle on their irons anyway.

So good question. But, again, our goal is to be the shaft on every club in the bag.

Jeff, CFO, Newton Golf: Great. Next question. How did the launch of FastMotion shaft perform compared to your initial expectations, especially in terms of demand, adoption, pace, and tour momentum?

Greg, CEO, Newton Golf: Yeah. Good question. So we’re very excited about the, fast motion shaft. We noted in our press release, it was introduced on, April 29. So in the second quarter, we only had two months of sales of that shaft, but it far exceeded our expectations.

The performance of the FAST Shaft is pretty spectacular. It’s a lighter shaft by about 10 grams at every flex, but it also seems to be more accurate. We’re seeing this on the tour. So Miguel, who’s a money leader on the PGA champions tour, he’s swinging the fast shaft. We got a lot of pros playing the fast, and we’re just getting really, really good data off the fast shafts.

As we moved into third quarter, we’re a little less than halfway through, and now the fast shaft sales are exploding even more. We sold over 2,200 units approaching $800,000 worth of fast motion shaft sales in the third quarter. So it’s it’s doing really, really well.

Jeff, CFO, Newton Golf: Greg, there’s a follow-up question. It says, when can we expect a fast motion fairway wood up?

Greg, CEO, Newton Golf: Yeah. I alluded to that in the previous answer. I think timing is probably PGA show in January.

Jeff, CFO, Newton Golf: Great. Kinda cutting the chase with this one. Do you still plan on being cash flow positive by 02/1926?

Greg, CEO, Newton Golf: Yes. I think that’s very doable. There are three knobs. One is revenue growth, which we’re experiencing. The second one is the gross margin dollars, which obviously go with revenue and gross margin percentage.

As we increase the volume, the cost per unit is gonna come down because the factory overhead is fixed. If I double volume, I don’t need to double labor. And so my cost per unit is gonna come down, which increases my gross margin percentage. And because of the higher revenue, that’s more gross profit dollars. And then the third thing is we’ve been investing very heavily in brand marketing to build the Newton brand.

And so as a percentage of revenue, that’s a little high right now, but I think we’ll be able to ease off on that investment as revenue grows. And so those three factors are gonna get us to profitability, and I think we’ll be able to achieve that in 2026.

Jeff, CFO, Newton Golf: Great. What caused the large increase in s g and a cost this year?

Greg, CEO, Newton Golf: Well, I alluded to the marketing dollars. We’ve been spending very heavily on brand marketing, like golf channel advertising. We spent a lot of money on producing good quality advertising for our digital marketing campaigns as well as the TV commercials. We did some TV spots on CBS and local markets. We’ve we’ve invested pretty heavily in advertising and brand marketing.

We also implemented a NetSuite ERP system, which we’ve invested in pretty heavily. And then we had some onetime costs, g and a costs associated with our, public offering that we did at the December, but it spilled into the warrant conversion in our first quarter. So we had some extra costs there as well. So there’s quite a few onetime costs in the first half of the year that we don’t expect to see in the second half.

Jeff, CFO, Newton Golf: Yeah. And I think that what I would add to the investors is, you know, we’ve got sales commissions. That’s a variable expense. The Shopify fees, you know, 92% of our sales currently are coming through d to c. The variable marketing costs we spend, as you mentioned, Greg, quite a bit of money on Google ad buys, Facebook buys.

So those will continue to climb as our revenue goes up. We have shipping costs in s g and a as well. However, as a percentage of revenue, you’ll start to see those things come down. And Greg and I are spending a lot of time going through to figure out how we can maximize our return on investment and get a better use of our cash, getting to profitability. And one of the key factors of that is keeping our s g and a in check.

Another question here is, are there any plans on utilizing the share buyback? I could answer that, Greg, if you want.

Greg, CEO, Newton Golf: Yep. Go ahead.

Jeff, CFO, Newton Golf: Outside of the 200,000 shares that we purchased in q two, there is no plans to purchase more of our shares. The board allowed us, Greg, to purchase up to an up to a million. We do not plan on buying back additional shares. How long do you expect your current cash to last?

Greg, CEO, Newton Golf: You wanna take that one,

Jeff, CFO, Newton Golf: Jeff? Sure. You know, I if you do the back of the napkin, we had $4,000,000 of cash and equivalents at the end of the quarter. Anyone can look at the OpEx. We’re burning just over $400,000 a month.

That would you divide that by the 4,000,000, that gives you our runway. One of the things that we’re gonna do, and I’m sure it will come up, you know, we did it happened. The financing we did in December was toxic. We will never do another toxic, financing like that again. You know, the former CFO, the legal team that were behind that are gone.

And we are we’ll be looking for more I can yell, less dilutive and less costly mechanisms to raise capital. We don’t need to raise a tremendous amount of capital to continue our growth because we will be bringing our costs down. Our revenue is accelerating. We are technology company, with new shops coming. So we’re really excited about the top line.

The additional top line provides more margin, which will get us to profitability, which you you no longer need to raise cash. One of the things that we will most likely do is utilize an ATM. ATMs are great as everyone on the call knows. It’s the cheapest source of capital. And then you can sell into the market on high volume days, eliminating you know, without putting downward pressure on the stock and at a cost of right around two and a half percent.

Very economical and less dilutive way of raising capital, and that’s kind of the short answer to that. But we really look to raise a little bit of money, and, hopefully, that’s the last operating capital we raise. We may raise money in the future for acquisitions, opportunities that come our way. But as of now, we feel good about our cash position and how we will raise cash, to make up the for that shortfall. Can you get putters to grow and be a bigger part of the revenues again?

Did you return to higher putter ad spend?

Greg, CEO, Newton Golf: Yeah. Very good question. We wrestle with this all the time. We we did advertise putters direct to consumer early on. We were successful at driving traffic to the Shopify store, but people just weren’t buying.

It seemed to be more of a educational journey. I think unlike the driver shaft or the fairway wood shaft, it’s good for people to have the putter in their hands. So we just recently rolled out a bunch of putters to Club Champion stores. We’re gonna do a try and buy type program where you can basically select the putter, get it shipped to you. You can try it.

If you like it, you can buy it. If you don’t like it, you send it back, money back guarantee type thing. But we haven’t really spent the ad dollars because we’re getting such good results on our ad spend for the shafts. I mean, we’re doing blended greater than four to one ROAS return on ad spend for shafts. And so the limited ad dollars we have, we’re we’re moving them that way.

But we are gonna start making a concerted effort to try to drive putter sales here in the second half.

Jeff, CFO, Newton Golf: Are there any plans to keep stock of certain shafts?

Greg, CEO, Newton Golf: Not sure I understand that question.

Jeff, CFO, Newton Golf: Maintaining inventory, would suspect.

Greg, CEO, Newton Golf: Oh, yeah. Yeah. Yeah. Yeah. Yeah.

For sure. So we we just recently increased production pretty significantly with the goal of basically building up some inventory so that we can fulfill orders very, very quickly. We’ve been struggling, frankly, to keep up with the demand. We had very, very big Memorial Day sale, pretty good Father’s Day sale, big July 4 sale, and we had to kinda dig our way out of that backlog a little bit. So we do have a build plan now in place, and our goal is to have quite a bit of inventory.

Not a lot, but but enough inventory to be able to fill orders quickly.

Jeff, CFO, Newton Golf: Okay. Do you have an update on Asian markets, particular Korea and Japan?

Greg, CEO, Newton Golf: Yeah. Japan, we’re very excited about. We were just over there in June. We’re introducing the fast motion shafts there, which is a really good fit for that market. We’ve got a number of fitters lined up over there.

We’re in a bunch of tours. We’re spending some money on Japanese marketing. We just signed a tour pro here in The US who’s Japanese, and that’s really going to help with Japanese marketing. Our Japanese partner is gonna do launch an ecommerce site in Japan next month. So we’re we’re pretty encouraged about the the rapid increase of activities in Japan, which we think will translate into some good revenue in the next quarter.

Korea, we have a distributor there for putters. We’re in discussions with potential distributors for shafts, so I expect to be able to announce a Korean distributor for shafts in the near future.

Jeff, CFO, Newton Golf: Alright. Someone wants to know, where we’re at with OEM deals or US retail expansion. For example, PJ’s store, Golf Galaxy. Surely, retailers see people like John Daly, using your shafts.

Greg, CEO, Newton Golf: Yeah. We’re we are in discussions with those retail stores that were just mentioned. In addition to that, we’re in discussions with four different OEMs about being an upgrade shaft on their equipment. So we’re going through that process. In addition to that, we’ve recruited over 200 independent fitters slash small retailers that we use to sell shafts.

So we’re trying to build out all the channels.

Jeff, CFO, Newton Golf: Great. We keep getting a bunch of financing needs, you know, cash. So let me just, reiterate from that standpoint. You know, we’ve probably got a little over nine months of cash, that will get us through. As our costs go down, we feel good about our cash position.

We will most likely utilize an ATM vehicle. We will not be doing a toxic financing. If we do some sort of public raise, the goal, and I’ve never done anything different, is a straight common deal. We’re now expanding. We got a secondary question here about having more meetings with investors.

We certainly want to Greg and I had a bunch of dinners in new in Newport Beach, in LA. We’re gonna start setting up one on ones, Zoom meetings with investors, keep them in the loop. We’ll do these earnings calls. We’re going to begin attending conferences. We actually signed a deal, with another bank to help bring visibility in.

So it’s all about communication and clarity so the investors know where we’re going, and you can see us executing along the plant way. All of that, as we drive momentum and build the stock price back up, there shouldn’t be a need to do a toxic type financing because we’ll have enough volume in the stock and shares an interest in the company, because the ATM will provide whatever coverage we need so we can if we need to raise money, we do it on our on our timing and not because we’re running out of cash. That’s kinda confusing. Let me see what else we got here. Same.

Cash warrants, $8 and 40. Are they in sight? Do you want me to do that one?

Greg, CEO, Newton Golf: Yeah. Go ahead with that, Jeff. Talk about the series a warrants.

Jeff, CFO, Newton Golf: I think it’s series b. They saw the floor of 840 or maybe it’s series a. In general, guys, there’s a page in the queue. I’d recommend you take a look at it. You know, they did the financing in December.

That was roughly, after post reverse. 268,000 shares common, 268,000 shares of series a, 268,000 shares of series b. Both the warrants have cashless exercise provisions. The series a was part of a there was a reset in there when we did the reverse. So the new exercise price for the series a is a dollar 88.

They’re close to being in the money, though I don’t expect anyone to use cash flows until the stock’s north of $34. The other one that we had in there, you guys this is what why the stock has gone down so dramatically since December was because of the toxicity and the reset within the series b warrants. There are currently we had 268,000 outstanding. There are now just about 17,000 warrants outstanding, the majority of it exercised. Those could convert into just over 300,000 shares on the alternative cashless basis.

So it’s done. The the positive is that we know exactly what the fully diluted cap table looks like now. The series b are almost gone, which gives us the ability to bring momentum back into the stock, as we continue to execute the company. That one was asked. Okay.

Very kind of a macro strategic partnerships and m and a. The q two note notes mentioned potential m and a. Can you share more about the types of targets you’re considering and how they could enhance shareholder value? Are there any OEM or retail partnerships in the pipeline that could materially impact valuation? Valuation?

You kinda touched on it, but it’s more from a m and a stock price standpoint. Greg?

Greg, CEO, Newton Golf: Sure. Yeah. Look. We’re always looking for good m and a opportunities that fit the brand. Remember, Newton is a technologically differentiated set of products.

So if we find something that we think fits the brand and can grow revenue and EBITDA quicker than organically, then we will jump on it. I have looked at a couple of deals. Didn’t consummate either of those yet, but we’re always looking for good opportunity.

Jeff, CFO, Newton Golf: Here an interesting kinda link question. With the recent acquisition of Lab Golf for over 200,000,000 driven in part by high profile tour wins and explosive demand, what are your takeaways as CEO? How do you interpret what this means for the valuation of performance driven golf technology?

Greg, CEO, Newton Golf: Yeah. I think it’s a great thing. It’s really, really good for the industry. Congratulations to the Lab Golf guys. You know, they’ve had some really good success, particularly with JJ Spawn winning the US Open with a lab putter.

I think it’s a harbinger of things we could possibly achieve. I personally think our putters are superior. If you look at the physics of the putter head itself, lab puts a lot of weight on the very bottom of the club that’s not great for center of gravity. But, look, they’ve had tremendous success. I all kudos to them.

I think the valuation was a great valuation, and I think it’s good for the industry, and it’s really good for us.

Jeff, CFO, Newton Golf: Absolutely. So here’s another one. How many of the 50 plus tour professionals using a Newton shaft are you compensating?

Greg, CEO, Newton Golf: So we do two things. The first thing we do on the champions tour is we have a performance pool. So every tournament, we put $6,000 in the performance pool. You have to play the Newton shaft for that tournament in order to be eligible for the pool. The one with the lowest score gets 50% of that pool.

Second place person gets 30% of the pool. Third place gets 20% of the pool. So that’s one way of compensating. It’s not a lot of big dollars, but these guys like those extra kind of incentives. And then we do sponsor a few.

And when I say few, it’s like three professionals. So Ken Duke wears our logo on his hat. Doug Baron wears our logo on his shirt, and then we have given another player who I can’t yet use his name some compensation. But that’s one of the great things about being a shaft company and not a full club company like a Titleist or a Callaway is that they’re doing the big sponsorship deals, paying the big dollars. But because we’re just a shaft, we’re not necessarily having to do the same.

Jeff, CFO, Newton Golf: Alright. Here is a really good question, which will I’m glad someone asked, and you’ll get a better understand why we’re bullish on increasing our margins. You mentioned increased production capacity. Is the plant still at 40,000,000 revenue capacity or higher now?

Greg, CEO, Newton Golf: The plant is running two shifts five days a week currently, and we can do about 25,000,000 at that rate. The the plant has the ability to go over to 45,000,000 by just adding another shift and adding weekends. And then we have two buildings. One is used for what I call shaft formation, and then the second building is used for assembly, test, and ship. And we have the ability to open up a second formation building at very low cost in which we could further increase production.

So I don’t see our facility being a bottleneck for a few years.

Jeff, CFO, Newton Golf: Kind of a mixture of questions here. What about getting into other product lines, apparel? The other question, I also saw some vessel bags with new logos. They look awesome. Any chance to partner with them for bags?

Greg, CEO, Newton Golf: Yeah. We love vessel bags. We we have Newton logo vessel bags that we bring on the tour. And when we do sponsored events we’ve been doing a lot of sponsored events, celebrity tournaments, etcetera, where we get a lot of good, not just brand visibility, but the opportunity for a lot of people to try and then buy our shafts and putters. Yeah.

So we don’t resell those bags currently, but we do use them, and they’re they’re really good bags. In terms of the apparel space, you know, I’ve thought about it quite a bit. Possibly down the line, but frankly, back to the brand, we’re technologically differentiated physics first type of brand. I don’t really see that fitting in the apparel space.

Jeff, CFO, Newton Golf: Okay. Another question. Has a company received any inbound interest from strategic buyers or potential acquirers? And if so, how are you evaluating those opportunities in the context of maximizing shareholder value?

Greg, CEO, Newton Golf: Yeah. I can’t really comment on that that type of question.

Jeff, CFO, Newton Golf: Are there any current PGA Tour players using the shaft? Any PGA Tour players that you’re close to signing? Why is it mostly champions tour players and not PGA Tour yet? Yeah.

Greg, CEO, Newton Golf: Great question. Two reasons for that. First, we focused on the champions tour first, mainly because of what I alluded to earlier in terms of sponsorship and dollars. Frankly, we got overwhelmed with the response of the champions tour. So, you know, last year, we had one guy out there.

This year, we got two guys out there. They’re both swamped. We tried to add LPGA this year. We’ve been to a few LPGA events, but we’re gonna need more staff to really do that properly. We did add another tour rep to cover both Liv and the big PGA tour, but we didn’t quite have the right type of shaft for the big tour, the PGA tour, until just recently when we introduced the seven dot.

So we do have a tour rep now on the big tour. We think we’ve got the right shaft, So I’m hoping that we’ll see some results on the big tour.

Jeff, CFO, Newton Golf: Here’s a a fun question. It’s the last question so far. Were any new products using Happy Gilmore too?

Greg, CEO, Newton Golf: I wish. No. They were not, but I wish we I wish we could’ve. It was a great movie.

Jeff, CFO, Newton Golf: Let’s see. A couple more came in. What is the plan for all the return shafts? Is this dead inventory, or is there an avenue to turn into revenue?

Greg, CEO, Newton Golf: Yeah. So what typically happens, you know, a lot of people don’t really know their swing speed. So when they go to the website and they go through our fitting guide, they, for instance, might pick a four dot. They get it shipped to them. They start swinging it, and they think, oh gosh.

You know, I probably should’ve got a three dot. So they return that four dot, and then we ship them out a three dot. That four dot, we inspect it. If it’s in really good shape and there’s no scratches and everything looks good, we’ll put it back in inventory, and then we’ll resell that that shaft. But if it’s got any flaw whatsoever, and I mean a blemish, we’re pretty strict on our quality, then that’ll become a demo shaft.

And if it’s destroyed or damaged, then obviously that would be scrap.

Jeff, CFO, Newton Golf: Here is a really good question. The main negative I read on social media from customers is a slow delayed shipment of shafts. How does Newton plan on changing that perception and getting shafts delivered sooner?

Greg, CEO, Newton Golf: Yeah. That’s a good one. And and it and we we have to own that because, as I mentioned, Memorial Day was huge. July 4 was even bigger, and we got behind. We were shipping shafts within forty eight hours of order, and we fell behind.

But we’re digging our way back out. And as I mentioned, we’re now building extra shafts so that we’ll have plenty of inventory, and we can do fast fulfillment.

Jeff, CFO, Newton Golf: When do we plan on expanding to Europe and have our product available in local stores?

Greg, CEO, Newton Golf: Yeah. That’s a great question. We do sell through a distributor in Sweden. We’ve been having discussions with distributors and reps in The UK as well as in France and Germany, but we haven’t really inked anything yet. So I would say probably in the near future.

Jeff, CFO, Newton Golf: Alright. This is a follow-up to the question on the social media in the shaft. I noticed your Facebook and Instagram pages don’t interact with customers anymore. Any reason why?

Greg, CEO, Newton Golf: Are you talking about if a customer makes a comment on an Instagram page so that the company doesn’t respond?

Jeff, CFO, Newton Golf: I think so.

Greg, CEO, Newton Golf: I that’s think that’s the

Jeff, CFO, Newton Golf: question. Oh, I interpret it.

Greg, CEO, Newton Golf: Yep. Yeah. So that’s a pretty good point. The previous agency we were using, we were paying a dedicated social media person to respond to all of those comments. And, frankly, it just became too much.

And we didn’t when we switched agencies in April, we didn’t elect to pay for a dedicated person to do that.

Jeff, CFO, Newton Golf: The guy followed up. Offer investors shares to comment nicely. Can’t do that. But alright. Made in The US seems to be biggest thing right now.

Why are you not approaching the president, fitting him up with your best shafts, and just roll from there? He loves golf and especially made in The USA.

Greg, CEO, Newton Golf: Well, actually, one of our tour pros played golf with the president. The president tried and loved and kept our Newton shaft. We don’t widely advertise that because we know there’s a lot of anti Trump people out there. So but that’s the case. We try to make a big deal out of the Made in The USA.

We had a TV commercial on that. We haven’t really made any hay with pointing out the fact that we don’t have to pay any tariffs, which could be something we should do. But, yeah, we we lean pretty heavy into the made in The USA theme.

Jeff, CFO, Newton Golf: Yeah. That that tariffs is a big differentiator, Greg, in the fact that we don’t have to pay tariffs and our competition does.

Greg, CEO, Newton Golf: That’s correct. Yeah. Because our comp our competitors manufacture both the China and Vietnam.

Jeff, CFO, Newton Golf: Let’s see. Yeah. Promoting no tariffs equals price stability. Comment.

Greg, CEO, Newton Golf: Yeah. Maybe a little comment on price because we recently increased the price. When we introduced fast, the motion was at $2.75, and we brought out the fast at $3.25. And that price didn’t seem to shake anybody as I alluded to earlier. The fast motion shales are taken off.

So July 1, we increased the price on the motion from $2.75 to 300, and, you know, we didn’t see a blip at all. So I think we’re pretty solid on price. The competition is higher than us, $3.50 up to 400. So I feel pretty good about the price.

Jeff, CFO, Newton Golf: So one of our shareholders thinks I’m ignoring him. You mentioned this earlier. I’m not aware of this, Greg, but we reflect 60,000 happy customers on our on our website, I think.

Greg, CEO, Newton Golf: Yeah. I saw that email. I’m I I didn’t mean to ignore him at all.

Jeff, CFO, Newton Golf: Oh, no. He asked a question earlier, and I just haven’t gotten to it yet.

Greg, CEO, Newton Golf: Oh, I see. Yeah. Look. We’ve we’ve we’ve got a lot of customers. I don’t know what the right exact number is, but it’s not just people that buy shafts.

Right? We give away a lot of shafts. We have a lot of independent fitters that have got shafts. We’ve got a lot of celebrities that got shafts. We have influencers that we pay through our affiliated marketing program that all have shafts.

Got a lot of people with putters out there that that they didn’t purchase. So I don’t know. I’ll take another look at the the number where we got the 60,000, but but we’ve got I think he was trying to do the math on matching our revenue to numbers of customers.

Jeff, CFO, Newton Golf: Yeah. That would Which is

Greg, CEO, Newton Golf: a valid which is a valid point. And I I think we should take a look at that and get back to them. 100%.

Jeff, CFO, Newton Golf: Good follow-up question related to no tariffs. You but you’re still importing raw materials for shafts. Do you wanna No.

Greg, CEO, Newton Golf: We’re not. No. We’re not. So we buy our fiber from a Japanese company called Toray, but it’s manufactured in The US because their biggest customer, Boeing, required that. So even though it’s a Japanese company, that fiber is made in The US.

So we do not import the carbon fiber.

Jeff, CFO, Newton Golf: Do we have plans to to release more PR?

Greg, CEO, Newton Golf: Sure. We have a weekly call to talk about PR. Frankly, there’s there’s not huge amounts of things we can talk about. We’re focused on our products. We’re focused on our tour players.

But yeah. I mean, we’re it’s not like we don’t try to do PR. We talk about it all the time, but I don’t like to put out press releases just for the sake of putting out a press release if it’s not meaningful.

Jeff, CFO, Newton Golf: Yeah. What I would add to it is part of what I like to do is, you know, when I build out my five year plan and really three year and over the next eighteen months, you know, all plans are an all hands process with all the department heads. You know, they can’t just be numbers on the page, and there are major events and triggering events set a different way that drive revenue growth, that increase margins, drive more efficiency in marketing. And, also, what I’d like to do is over the next eighteen months, we have our plan. You can start to prewrite press releases.

This is what we wanna communicate because, ultimately, I wanna let the world know what we’re doing, then do it. And if all goes well, we exceed expectations so the investor community can build trust in the management team that what we say is real, and it’s not fluff. So it gets to Greg’s point. Just doesn’t wanna release PR. But when you do that planning, you start to pencil in, oh, a new product release.

Now r and d has to hit that date. Marketing sales will start lining up behind it, and it’s a good way to make sure that we are completely aligned, not just living in a moment, but our success would be generating how we perform over the next eighteen months. So I think we will continuously put out PR when it’s meaningful, and it tells the right story. But in in general, we wanna get closer with the investor community. We are just getting started.

You know, our our revenues are they they’re not even a rounding error to our competitors. So, it’s a very exciting time, to grow this business. I don’t know what that is.

Greg, CEO, Newton Golf: You know you know, you’re sorry to follow-up on that comment you just made, Jeff. I mean, okay. Yeah. The competitors are bigger than us. But on Champions Tour, with about a year and a half worth of effort, we’re now a solid number two behind Fujikura.

We displaced everybody else. So that speaks to the the quality and the performance of our our product.

Jeff, CFO, Newton Golf: Oh, 100%. I think that’s that disconnect that the investor community doesn’t see in the sense that we are made massive inroads on a champions tour. But for the most part, like, I joined the company now sixty days ago, almost sixty days. I didn’t know who Newton was, and I think there’s a lot of people in this world. We’re just scratching the surface that champions guys know who we are.

Well, in everyday guys, there’s a huge market out there that doesn’t know we even exist yet. And when they do, I’m pretty confident we’re gonna get our share of that of their revenue. Let’s see. This says someone wants us to include more financial projections, and what certain news means for sales. I would

Greg, CEO, Newton Golf: say So so we tried to give revenue guidance for the full year at the beginning of the year. I don’t feel comfortable enough yet to be giving quarterly forecasts in until we get a little more history under our belt. But, you know, we we gave full year guidance at the end of first quarter. We’re now upgrading that guidance at the end of second quarter. We will look at that guidance again at the end of third quarter, and then we’ll talk about what 2026 is gonna look like.

Jeff, CFO, Newton Golf: This is funny. Just get rid of the toxic fundings, and we will be happy, Gilmore. We can we completely agree. And, again, we do not plan on doing toxic fundings. And I’ve been in this micro cap space a long time, and I think all of you guys, since you’re on this call and the people who read this, are also investors of micro cap companies.

We all know the banks don’t work for the companies. They work for their investors. And these s one deals, public offerings at this level, even before you put on a warrant, You know, we call it the double discount. Right? You know, you put your you file your s one, your s three, and your stock immediately gets shorted by all the investors that the bank has already lined up to come into the deal.

So they’ll drop it down 20 points, and then they’ll ask for a discount on top of it. And then the bankers will sometimes come back to you, oh, you know what? Even then, you know, we gotta add a warrant on top of that so that these guys, the the investors, they’ll immediately sell out of their position as soon as they get their their registered shares, and then they get a draft behind the warrant. And so we’re aware of that game. We do not plan on doing more of those.

That’s all I can tell you on that. So we wanna be a happy Gilmore too. Have you thought of a referral program? We need to get the word out. You have a winning product.

Greg, CEO, Newton Golf: Yes. That’s a really good point, and I think we need to expand what we’re doing in that regard. We do have an ambassador program where we give them discount code that they can reach out to their friends and do that, and then they get a little big on that. The affiliated marketing is is a form of referral program. But, yeah, that’s a very good point and something that we could build on.

Jeff, CFO, Newton Golf: Alright. I work with Club Champion to buy your shaft from you and was one of the very first to get this to happen. Can we work more closely with them? This is who will help us spread the word.

Greg, CEO, Newton Golf: Sure. Club champion’s been great Club champion’s been great for us. You know? We they’re about a 136 stores. You got seven dots, so you gotta put all those shafts in all those stores.

That’s a lot of shafts. And you wouldn’t do it if you didn’t think they could sell them, and they’ve been selling them really well. We just got them in May, our fast motion shafts to all those stores. We’re ramping up gravity putters to all those stores. So we’re very, very pleased with our partnership with Club Champion.

Jeff, CFO, Newton Golf: So I’m not familiar with this one, Greg. Could you please speak to any involvement that Newton Golf had with the renaming of Newton Golf now Anvil Golf, the purchase or transfer of the website newtongolf.com from Anvil Golf, which now redirects to newtongolf.com, and the expected implications for brand name recognition SEO. Oh, okay. Now I know what he’s saying.

Greg, CEO, Newton Golf: Yeah. Yeah. So when we rebranded the company Newton Golf and tried to get the domain name Newton Golf, we found out that it was previously owned. We reached out to that person to try to buy it, and they didn’t wanna do it at first. And so we launched as newtongolfc0.com.

And just recently, we were able to purchase the domain and the Instagram handle newtongolf.com. So we now have that, which I think is a good thing.

Jeff, CFO, Newton Golf: Are you considering moving to a drop based release model at at all with limited edition putter shaft or in the future? Putter soft goods similar to what companies such as Bettenardi, Taylor Made, Cobra, etcetera are doing.

Greg, CEO, Newton Golf: We’ve discussed that. So that is a possibility. Yes.

Jeff, CFO, Newton Golf: Alright. Okay. What’s the company’s name in Sweden that sells your shafts?

Greg, CEO, Newton Golf: Oh, that’s a good question. I don’t know it off the top of my head. My sales guy, Angelo, did that. We can get back to the person we can get back to the person by email if we have their email.

Jeff, CFO, Newton Golf: Yeah. If you send that question to our IR, Scott, we’ll get you that answer. Okay. That that’s all the question I’ve seen so far. I’ll get I’ll I’ll let you guys go for a minute, see if you got any additional questions.

You guys have been great. A lot of good questions.

Greg, CEO, Newton Golf: Yeah. Thanks thanks for coming on. I really love the interest. Are we good?

Jeff, CFO, Newton Golf: Just a second. Hold on. Giving them all a little more second. Alright. Any interest in doing a Newton golf day?

Greg, CEO, Newton Golf: For investors?

Jeff, CFO, Newton Golf: I think so. Investors

Greg, CEO, Newton Golf: Yeah. So we’ve we’ve been talking about that. Our IR guy, Scott, has recommended that to us, And we were thinking about doing that in December somewhere in a sunny location in conjunction with our face to face on-site board meeting where we basically do the the annual planning. That way the board could meet investors. So, yeah, we’re we’re dialoguing that a little bit right now.

I would love to do it.

Jeff, CFO, Newton Golf: Alright. So thank you, Anonymous. This is a good final. What is your final message to investors to help restore their confidence in the company’s future?

Greg, CEO, Newton Golf: I think we’re extremely undervalued. I think there’s a huge amount of upside. I’m personally buying the stock, and I hope you’ll do the same.

Jeff, CFO, Newton Golf: Alright. So that basically concludes. Do you wanna wrap it up, Greg?

Greg, CEO, Newton Golf: Sure. Well, thanks again to everyone who joined our call today. We really, really appreciate your continued interest. We wanna be much more communicative with you. We wanna give you the information you need to make the investment.

So thank you for joining, and, we really enjoyed this. Have a great evening.

Jeff, CFO, Newton Golf: Thank you, everyone.

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