Newton Golf Company Announces Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Newton Golf (NASDAQ: NWTG) reported exceptional financial results for Q4 and full-year 2024, showcasing remarkable growth. Q4 revenue surged 817% to $1.07 million from $117,000 in Q4 2023, while full-year revenue jumped 887% to $3.45 million from $349,000 in 2023.

The company demonstrated significant operational improvements with Q4 gross margin expanding to 73% (from 36% in Q4 2023) and full-year gross margin reaching 67% (from 35% in 2023). Cash balance stood at $7.65 million as of December 31, 2024, providing approximately 14 months of operational runway.

For 2025, Newton Golf projects revenue between $6.5-7.0 million. The company expanded globally, securing distribution in 50 major Japanese golf retail locations and achieving increased tour adoption, with over 30 players using Newton Motion Shaft on the PGA TOUR Champions during 2024.

Positive

• Revenue grew 887% to $3.45M in 2024
• Q4 gross margin expanded significantly to 73% from 36%
• Strong 2025 revenue guidance of $6.5-7.0M
• Secured distribution in 50 major Japanese retail locations
• Over 30 PGA TOUR Champions players adopted Newton Motion Shaft
• $7.65M cash balance provides 14 months operational runway

Negative

• Significant warrant liabilities impact of $12.96M recorded
• Company still evaluating additional financing needs
• Operating losses continue, requiring external funding for growth

Insights

Financial Analyst

Newton Golf's Q4 and FY2024 results showcase extraordinary growth metrics that deserve investor attention. The 887% annual revenue increase to $3.445 million demonstrates exceptional commercial traction, while the gross margin expansion from 35% to 67% indicates significant operational leverage and manufacturing efficiency improvements.

The warrant liability accounting deserves clarification. The $11.41 million Series B warrant liability significantly impacted reported profitability, but with 90% already exercised, we'll see substantial improvement in profitability metrics for 2025. This accounting treatment created artificial pressure on reported results.

The $7.65 million cash position provides approximately 14 months of runway, which seems adequate for near-term operations but suggests additional capital may be needed by mid-2026. The 2025 revenue guidance of $6.5-7.0 million represents continued strong growth of roughly 100%, though this naturally reflects a deceleration from the previous year's exceptional percentage growth.

While these growth rates are impressive, they come from a relatively modest revenue base in absolute terms. The dramatic gross margin improvement to 73% in Q4 provides substantial contribution margin to support further expansion but raises questions about sustainability at larger volumes.

Golf Industry Expert

Newton Golf's operational achievements in 2024 reflect smart strategic execution in the premium golf equipment segment. The successful rebranding from Sacks Parente to Newton Golf establishes a stronger identity focused on their physics-driven approach to equipment design.

The professional adoption metrics are particularly noteworthy. Having over 30 players using their Motion Shaft on the PGA TOUR Champions provides crucial validation, while Doug Barron's major victory at the Regions Tradition represents a significant performance endorsement. The company's mention of expanding traction on both the PGA Tour and LPGA Tour indicates broadening professional acceptance.

Their Japanese market penetration, securing distribution in 50 major retail locations, demonstrates effective international execution in one of golf's most discerning equipment markets. The product portfolio expansion with new putter models and the Fast Motion shaft line shows commitment to innovation across multiple product categories.

The company's strategic priorities focusing on scaling global distribution while strengthening direct-to-consumer channels creates complementary growth vectors. While Newton remains a relatively small player in the competitive golf equipment landscape, their impressive margin structure and professional validation provide foundation for continued market share gains in premium equipment categories.

Report includes tenfold revenue growth and significant gross margin expansion

CAMARILLO, Calif., March 31, 2025 (GLOBE NEWSWIRE) -- via IBN – Newton Golf Company (Nasdaq: NWTG) (“Newton Golf” or the “Company”), a leader in premium golf equipment innovation, today announces financial results for the fourth quarter and full year ended Dec. 31, 2024. The Company delivered record revenue growth, strong margin expansion, and continued operational momentum, supported by strategic product launches, international expansion, and a successful corporate rebranding.

HIGHLIGHTS

• Fourth Quarter Revenue of $1,073,000, an 817% increase from $117,000 in Q4 2023.
• Fourth Quarter Gross Margin expanded to 73%, up from 36% in Q4 2023, driven by enhanced manufacturing efficiencies and an improved product mix.
• Full-Year Revenue of $3.445 million, representing an 887% increase from $349,000 in fiscal 2023.
• Full-Year Gross Margin increased to 67%, compared to 35% in fiscal 2023, reflecting higher sales volume and improved production efficiencies.
• Successfully rebranded from Sacks Parente Golf to Newton Golf Company, reinforcing its physics-driven approach to golf equipment innovation.
• Expanded product portfolio, launching Newton Fairway Motion Shafts, five new Newton Gravity putter models, and the new Fast Motion shaft line, a lighter-weight shaft available in a distinct new color.
• Broadened global presence, securing distribution in 50 of Japan’s largest golf retail locations.
• Increased tour adoption, with over 30 players putting the Newton Motion Shaft in play on the PGA TOUR Champions during 2024. Newton Golf continues to expand its presence, with growing traction on both the PGA Tour and LPGA Tour.
• Doug Barron captured a major victory at the Regions Tradition on the PGA TOUR Champions using a Newton Motion shaft, validating Newton’s performance on the sport’s biggest stages.
• As of Dec. 31, 2024, Newton Golf had a cash balance of $7.65 million, which is expected to support operations for approximately 14 months. The Company continues to evaluate additional financing opportunities to support long-term growth.

"2024 was a transformative year for Newton Golf, as we successfully executed our strategic vision and delivered exceptional financial and operational performance," said Greg Campbell, chairman and CEO of Newton Golf Company. "Our tenfold revenue growth, substantial margin expansion, and increasing tour adoption demonstrate the effectiveness of our innovation and market strategy. With expanding tour presence, including players on the PGA Tour and LPGA Tour, and the launch of our new Fast Motion shaft line, we continue to drive industry-leading performance and brand recognition. With a strong foundation in place, we are focused on scaling operations, expanding global distribution, and driving sustained growth in 2025 and beyond."

CONSOLIDATED RESULTS

Three Months Ended December 31, 2024

		Q4 2024				Q4 2023			% Change
Net Sales	$	1,073,000			$	117,000			817		%
Cost of goods sold		296,000				75,000			295		%
Gross profit		777,000				42,000			1,750		%
Operating expenses:
Selling, general and administrative		2,178,000				1,922,000			13		%
Research and development		25,000				35,000			-29		%
Total operating expenses		2,203,000				1,957,000			13		%
Loss from operations		-1,426,000				-1,915,000			-26		%
Interest income (expense), net		20,000				76,000			-74		%
Financing Costs		(5,631,000	)			-
Change in Fair Value of Warrant Liability		(259,000	)			-
Net loss	$	(7,295,000	)		$	(1,839,000	)		-297		%

Fourth quarter revenue was $1,073,000, up 817% from $117,000 in Q4 2023. The significant revenue growth was driven by strong demand for the Company’s premium golf shafts and putters, expansion into new markets, and increased adoption among professional golfers.

Gross margin for the quarter expanded to 73%, up from 36% in Q4 2023, reflecting operational efficiencies, increased production volume, and an improved product mix.

Twelve Months Ended December 31, 2024

		FY 2024				FY 2023			% Change
Net Sales	$	3,445,000			$	349,000			887		%
Cost of goods sold		1,171,000				227,000			416		%
Gross profit		2,274,000				122,000			1,764		%
Operating expenses:
Selling, general and administrative		6,509,000				4,497,000			45		%
Research and development		743,000				258,000			188		%
Total operating expenses		7,252,000				4,755,000			53		%
Loss from operations		-4,978,000				-4,633,000			7		%
Interest income (expense), net		161,000				8,000			1,913		%
Financing Costs		(5,631,000	)		-
Change in Fair Value of Warrant Liability		(259,000	)			-
Net loss	$	(10,707,000	)		$	(4,625,000	)		132		%

Full-year revenue reached $3,445,000, up 887% from $349,000 in 2023, driven by successful product launches, expanded retail distribution, and a growing direct-to-consumer channel.

Gross margin improved to 67%, up from 35% in fiscal 2023, reflecting higher production scale, improved pricing strategies, and greater sales efficiency.

Explanation of Warrant Liabilities Impact

Warrant Issuance and Initial Liability Recognition:

On Dec. 12, 2024, Newton Golf Company issued 7,000,000 shares accompanied by 8,050,000 Series A warrants and 8,050,000 Series B warrants. Under GAAP accounting guidelines, the Company recorded corresponding warrant liabilities at fair value as of Dec. 31, 2024, amounting to $1,546,000 for Series A warrants and $11,410,000 for Series B warrants. These warrant-related liabilities significantly contributed to financing costs of $5,631,000 and change in the fair value of warrant liability of $259,000, representing a substantial portion of the net loss reported in fiscal 2024.

Warrant Exercise and Liability Reversal:

As of March 31, 2025, approximately 90% of the Series B warrants had been exercised, extinguishing most of the Series B warrant liability balance of $11,410,000 while increasing stockholders’ equity.

Future Financial Impact:

The reversal of the warrant liability by $10,500,000 will notably improve Newton Golf’s profitability and strengthen the balance sheet by significantly lowering total liabilities in 2025. Furthermore, as the remaining outstanding warrants are exercised, additional liability reductions will enhance the Company’s financial stability and performance moving forward.

BUSINESS OUTLOOK

Newton Golf anticipates continued revenue growth and improving gross margins in 2025, driven by:

• Revenue Guidance: The Company expects full-year 2025 revenue to range between $6.5 million and $7.0 million, representing continued strong growth from 2024.
  

The Company’s 2025 strategic priorities include:

• Scaling global distribution through expanded retail partnerships and club fitter networks.
• Strengthening direct-to-consumer (DTC) sales with enhanced digital marketing and e-commerce growth.
• Launching new high-performance golf technologies, including next-generation shafts and putters.
• Further international expansion, particularly in high-growth golf markets in Asia and Europe.

Newton Golf remains committed to long-term profitability and shareholder value creation, with a focus on innovation, operational efficiency, and market expansion.

Form10-K Filing

Newton Golf Company expects to file its Annual Report on Form 10-K for the year ended December 31, 2024, with the Securities and Exchange Commission (“SEC”) on or before April 4, 2025. Once filed, the Form 10-K will be accessible on the SEC’s website at www.sec.gov and through the Investor Relations section of Newton Golf’s website.

‍Investor Alerts

Stay updated with the latest from Newton Golf! Investors and stakeholders can sign up for email alerts at newtongolfir.com/email-alerts to receive company news, updates, and strategic developments directly in their inbox.

For more information, visit Newtongolfir.com.

About Newton Golf

At Newton Golf, we harness the power of physics to revolutionize golf equipment design. Formerly known as Sacks Parente, our rebranding reflects our commitment to innovation inspired by Sir Isaac Newton, the father of physics. By applying Newtonian principles to every aspect of our design process, we create precision-engineered golf clubs that deliver unmatched stability, control, and performance. Our mission is to empower golfers with scientifically advanced equipment that maximizes consistency and accuracy, ensuring every swing is backed by the laws of physics.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or the future financial performance of Newton Golf Company (the “Company”) and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements.

In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "expects," "plans," "anticipates," "intends," "believes," "estimates," "projects," "potential," "continues," or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements regarding the expected benefits of the reverse stock split, the Company’s ability to maintain compliance with Nasdaq listing requirements, the potential for increased institutional investor interest, the Company’s future growth strategy, expansion of its product portfolio, anticipated financial performance, and future business prospects.

These forward-looking statements reflect the Company’s current expectations and projections based on information available as of the date of this release and are subject to a number of risks and uncertainties, including, but not limited to, general economic, financial, and business conditions; changes in consumer demand and industry trends; the Company’s ability to successfully implement its strategic initiatives; competition in the golf equipment market; supply chain disruptions; regulatory compliance and legal proceedings; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.

The Company cautions investors that forward-looking statements are not guarantees of future performance and actual results may differ materially from those projected. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

Company Contact:
Newton Golf Company
551 Calle San Pablo
Camarillo, CA 93012
https://newtongolfco.com/

Investor Contact:
Scott McGowan
InvestorBrandNetwork (IBN)
Phone: 310.299.1717
ir@newtongolfco.com

FAQ

What was Newton Golf's (NWTG) revenue growth in Q4 2024?

NWTG's Q4 2024 revenue grew 817% to $1.073 million, compared to $117,000 in Q4 2023.

What is Newton Golf's (NWTG) revenue guidance for 2025?

NWTG expects 2025 revenue between $6.5 million and $7.0 million.

How much cash does Newton Golf (NWTG) have as of December 31, 2024?

NWTG had $7.65 million in cash, expected to support operations for approximately 14 months.

What was Newton Golf's (NWTG) gross margin improvement in 2024?

NWTG's full-year gross margin increased to 67% in 2024 from 35% in 2023.

How many golf retail locations did Newton Golf (NWTG) secure in Japan?

NWTG secured distribution in 50 of Japan's largest golf retail locations.