Newton Golf Company (NWTG) investor relations material

Executive summary

• Q1 2026 revenue declined 18% year-over-year to $991,000–$1 million due to manufacturing disruptions and transition activities, but customer demand remained strong with $1.2 million in deposits and open orders reflecting delayed shipments.

• Operational highlights included scaling the Newton Motion Shaft platform, launching Fast Motion fairway wood and hybrid shafts at the 2026 PGA Show (commercial launch expected Q3 2026), and expanding distribution through professional club fitters and international partners.

• Manufacturing upgrades and process changes temporarily reduced production throughput, impacting gross profit and delaying shipments, but are expected to support long-term growth and market adoption.

• Key management changes included hiring a manufacturing executive and appointing a new interim CEO and expanded CFO role.

• Entered into convertible note financing agreements totaling up to $2 million, with $1.35 million closed by quarter end and shortly after, to support working capital and operations.

Financial highlights

• Net sales for Q1 2026 were $991,000–$1 million, down 18% from Q1 2025, mainly due to reduced manufacturing capacity and delayed order fulfillment.

• Gross profit was $628,000 (63% margin), down from $852,000 (70% margin) year-over-year, impacted by lower production volumes.

• Operating expenses rose 15% to $3.2 million, driven by higher labor, bonus accruals, and R&D costs.

• Net loss widened to $2.7 million (or $0.58 per share), compared to $0.5 million (or $0.55 per share) in Q1 2025, with prior year benefiting from a $1.4 million non-cash gain on warrant liabilities.

• Cash and cash equivalents stood at $593,000 as of March 31, 2026, with a stockholders' deficit of $1,521,000.

Outlook and guidance

• Management expects manufacturing efficiency and fulfillment to improve as operational scaling initiatives are completed in Q2 2026, with higher production volumes and operating leverage anticipated.

• Expects to recognize $1.2 million in delayed shipments as revenue in Q2 as fulfillment improves.

• New product launches in Q3 2026 are expected to drive further growth, but no formal financial guidance was provided.

• Additional capital will be required to fund operations and growth; management is evaluating financing alternatives and intends to submit a plan to Nasdaq to regain compliance.