Newton Golf (NASDAQ:NWTG) reported record full-year 2025 revenue and outlined product and channel expansion efforts as the company works to scale its shaft platform, according to management’s remarks on its earnings call.
Leadership changes and 2025 revenue growth
Interim Chief Executive Officer Akihiro said he is serving as interim CEO following the termination of Greg Campbell on March 27, as disclosed in a Form 8-K. Akihiro added that Brett Hogue is now chairman of the board, while Dr. Campbell will remain on the board.
Direct-to-consumer revenue increased 157% to $7.4 million, which Akihiro attributed to “improvements in digital marketing efficiency, higher conversion rates, and repeat customer purchases.” He said repeat customers represented 26.7% of gross DTC orders in 2025, up 36% from 2024. Akihiro also highlighted the company’s “highest single day sales total in company history on Black Friday.”
Channel expansion and product momentum
Akihiro said Newton expanded its professional club fitter network to approximately 230 locations, an increase of 130% from 2024. He also noted that Newton Shafts ranked as the No. 1 selling shafts for both drivers and fairway woods at Club Champion in 2025.
On the product front, Akihiro said the company continued expanding the Newton Motion shaft platform and highlighted Fast Motion, introduced in 2025, as the company’s best-selling shaft product and “an important extension of our driver shaft lineup.”
Following year-end, Newton introduced several new shaft configurations at the 2026 PGA Show, including:
- Fast Motion fairway wood shafts
- Dedicated hybrid shafts across its product lineup
- Updated versions of existing Motion and Fast Motion driver and fairway models
Management said these introductions extend the Motion platform across additional club categories and support a more integrated, system-based fitting approach.
Margins, expenses, and 2025 results
Chief Financial Officer and Chief Operating Officer Jeff Clayborne said gross profit totaled $4.6 million, or 56% of net sales, compared with $2.3 million, or 66% of net sales, in 2024. He said the gross margin decline was primarily due to additional labor costs, including incremental full-time employees, more temporary labor, and overtime used to meet increased demand.
Clayborne said the company is enhancing manufacturing management and operational planning processes to support scaling. He added that in January 2026, the company expanded his operational responsibilities to include oversight of manufacturing and operational functions.
Operating expenses rose to $12.1 million from $7.3 million in 2024. Clayborne attributed the increase mainly to higher marketing, personnel costs, and public-company operating costs, along with continued investment in research and development tied to the shaft technology platform. He also pointed to higher professional services expenses related to “optimization and enhancement of enterprise systems,” including NetSuite, AfterShip, demand planning tools, and system integrations intended to improve inventory accuracy, operational efficiency, and scalability.
Net loss for 2025 was $6.0 million, or -$1.63 per share, compared to $11.8 million in 2024, or -$178.33 per share. Cash and equivalents totaled $1.3 million at December 31, 2025.
In response to a question about gross margin pressure, Clayborne said an inventory adjustment in the fourth quarter was tied to “an additional $1 million of labor costs” and overtime, plus a “catch-up” effort tied to procedures and systems. He said there was also “an inventory adjustment related to improper bill of materials that has since been corrected.” While he said he was not giving formal guidance, Clayborne added that the company expects margins to “get back into the 60% range on a prospective basis.”
Financing, share activity, and liquidity
Clayborne said the company entered into a securities purchase agreement after year-end for up to $2.0 million of convertible notes and warrants, in one or more closings. On March 16, 2026, Newton completed an initial closing and issued a $500,000 convertible note bearing 10% annual interest and maturing in 18 months, along with a warrant to purchase 50,000 shares at an exercise price of $75 per share. He said the note (including accrued interest) is convertible into common stock at $60 per share at maturity.
Clayborne also cautioned about liquidity needs, stating, “We believe our existing cash resources will fund operations for a limited period and that additional financing will be required to support ongoing operations.”
During 2025, Clayborne said holders exercised substantially all Series B warrants issued in connection with a December 2024 financing, resulting in the issuance of approximately 4.2 million shares and strengthening stockholders’ equity. The company also retired 200,400 shares previously repurchased in the open market. As of the call date, Clayborne said approximately 16,849 Series B warrants remained outstanding, representing potential issuance of roughly 288,000 additional shares if exercised.
OEM engagement, “dot system” strategy, and capacity
Management discussed early-stage engagement with original equipment manufacturers (OEMs). Akihiro said the company has been engaged in conversations and has submitted shafts to various departments, including tour. He described a pathway that can include tour adoption, fitter programs, and ultimately appearing as an option on OEM websites, while noting there is “no set order in the industry.”
Clayborne said the company has made “significant progress with a couple OEMs” since its last update in November, but emphasized the company did not provide probabilities on timing. Akihiro said the company has focused on improving shaft design and testing, and on meeting OEM expectations around spec tolerances, consistency, performance, and delivery schedules.
Akihiro also detailed the company’s proprietary “dot system,” which replaces traditional flex categories with a numerical structure designed to be consistent across drivers, fairway woods, and hybrids. He described the approach as a “match-the-dot” concept intended to simplify purchasing and fitting decisions and help provide consistent feel across clubs.
On manufacturing capacity, management said its St. Joseph, Missouri facility provides production flexibility. Clayborne said the company can produce “over 200,000 shafts,” and that last year it produced “just over 41,000” between commercial and free goods. He said scaling plans include potentially hiring and adding staggered shifts, then an evening shift, and, if needed, an overnight shift.
Looking ahead, Clayborne said first-quarter 2026 orders have been coming in strong and “significantly higher than they were prior year,” adding the company expects to provide more detailed guidance when it reports first-quarter results. He also confirmed the company is “in the middle of a” CEO search.
Newton said it expects to report first-quarter 2026 results in May.
About Newton Golf (NASDAQ:NWTG)
Sacks Parente Golf, Inc (“SPG”) is a technology-forward golf company, with a growing portfolio of golf products, including putting instruments, golf shafts, golf grips, and other golf-related products. In April 2022, in consideration of our growth opportunities in shaft technologies, we expanded our manufacturing business to include advanced premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. We intend to manufacture and assemble substantially all products in the United States.
