TruGolf reported Q1 2025 sales of $5.4 million, with net losses doubling to $2.6 million compared to last year.
Quiver AI Summary
TruGolf Holdings, Inc. announced its first quarter 2025 financial results, reporting sales of $5.4 million, a 7.5% increase from the previous year’s $5.0 million. However, the company’s net losses doubled to $2.6 million, attributed primarily to higher interest expenses related to the conversion of convertible notes. Despite this, there was an improvement in earnings per share, moving from a loss of $0.22 to $0.09. CEO Chris Jones expressed optimism regarding the sales trajectory for the year, driven by new product launches and plans to address Nasdaq listing deficiencies. Furthermore, TruGolf expects to open its first franchise locations within 90 days and is focused on reducing debt and enhancing shareholder equity. Operating expenses increased significantly, leading to a higher loss from operations, while gross margins improved. The company is also experiencing a negative cash flow from operations compared to a positive cash flow in the prior year.
Potential Positives
- Company reported a 7.5% increase in sales year-over-year for the first quarter, reaching $5.4 million.
- Improvement in earnings per share (EPS) from a loss of ($0.22) in Q1 2024 to a loss of ($0.09) in Q1 2025.
- Management announced a plan to significantly reduce debt on the balance sheet and increase shareholder equity, which is a positive financial strategy.
- Gross margin increased to 68.0% in Q1 2025, up from 61.0% in the same period in 2024, indicating improved operational efficiency.
Potential Negatives
- Net losses doubled to ($2.6) million in 2025's first quarter compared to a net loss of ($1.3) million in the previous year, indicating worsening financial health.
- Operating expenses increased by 22.5%, contributing to greater loss from operations, which rose to ($1.2) million, revealing significant cost management challenges.
- Cash flow used in operations was approximately $0.5 million in the first quarter of 2025, a drastic decline from the $2.7 million generated in 2024's quarter, highlighting potential liquidity issues.
FAQ
What were TruGolf's Q1 2025 sales figures?
TruGolf reported sales of $5.4 million for Q1 2025, a 7.5% increase from $5.0 million in Q1 2024.
How did TruGolf's net loss change in Q1 2025?
The net loss for Q1 2025 was $2.6 million, doubling from a loss of $1.3 million in Q1 2024.
What are TruGolf's EPS results for the first quarter?
TruGolf's EPS for Q1 2025 was ($0.09), an improvement from ($0.22) in Q1 2024.
What investments is TruGolf making for growth?
TruGolf is focusing on reducing debt and launching new products and franchise locations this year.
What was the gross margin for TruGolf in Q1 2025?
The gross margin improved to 68.0% in Q1 2025, up from 61.0% in Q1 2024.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$TRUG Hedge Fund Activity
We have seen 10 institutional investors add shares of $TRUG stock to their portfolio, and 8 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- GEODE CAPITAL MANAGEMENT, LLC added 121,153 shares (+283.4%) to their portfolio in Q1 2025, for an estimated $42,645
- TABOR ASSET MANAGEMENT, LP added 47,379 shares (+inf%) to their portfolio in Q1 2025, for an estimated $16,677
- HRT FINANCIAL LP removed 41,412 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $27,804
- POLAR ASSET MANAGEMENT PARTNERS INC. removed 36,000 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $24,170
- SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 25,481 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $8,969
- RENAISSANCE TECHNOLOGIES LLC removed 17,684 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $6,224
- JANE STREET GROUP, LLC added 17,421 shares (+inf%) to their portfolio in Q1 2025, for an estimated $6,132
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Salt Lake City, Utah, May 15, 2025 (GLOBE NEWSWIRE) -- TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, announced today its first quarter 2025 results. The Company reported sales of $5.4 million, up 7.5% compared to 2024 first quarter sales of $5.0 million. Net losses doubled to ($2.6) million for 2025’s first quarter, versus a net loss of ($1.3) million in the 2024 period, driven largely by recognition of interest expenses associated with the conversion of convertible notes in the period. EPS for 2025’s first quarter was ($0.09), an improvement from 2024’s ($0.22) loss per share.
Chief Executive Officer and Director Chris Jones said, “2025 got off to a solid start and we expect the sales cadence to improve over the course of the year, driven by new product introductions. Management’s attention has also focused on addressing the previously reported Nasdaq listing deficiencies. The Company has announced a plan that will significantly reduce debt on its balance sheet and increase shareholder equity. This plan has been presented at a Nasdaq Listing Qualifications hearing on May 15th and we expect to receive their determination in the near term.”
Mr. Jones continued, “We look forward to further growth in the business as we continue to innovate in creating the best virtual golf ecosystem in the market. We expect the first franchise locations to open over the next 90 days, with the associated delivery of TruGolf hardware and software solutions. We are optimistic that new products expected to launch in the coming months will be well received.”
Operations:
Gross margin for 2025’s first quarter improved to 68.0% as compared to 61.0% in 2024’s quarter. 2025’s loss from operations was 30.7% higher at ($1.2) million as compared to ($0.9) million in 2024. 2025 operating expenses increased by 22.5% or $0.9 million, driven by higher SG&A costs arising from higher third-party installation expenses, increased marketing costs and higher professional fees.
Interest expense jumped by $1.1 million as $1.7 million in principal amount of convertible notes and their$1.1 million associated accrued and make-whole interest converted to shares and their full interest costs were recognized in the conversion period. Cash flow used in operations was approximately $0.5 million in the first quarter of 2025, versus generation of $2.7 million in 2024’s quarter, with the difference resulting from a growth in inventory in the 2025 period, as well as the greater net loss for the period.
Disclaimer on Forward Looking Statements
This news release contains certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute “forward-looking statements” and accordingly, involve estimates, assumptions, forecasts, judgements and uncertainties. Forward-looking statements include, without limitation, the timing of new franchise openings during 2025. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' ''should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors. Any forward-looking statements contained in this release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading "Risk Factors" in the Company's Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC, which are available on the SEC's website,
www.sec.gov
About TruGolf:
Since 1983, TruGolf has been passionate about driving the golf industry with innovative indoor golf solutions. TruGolf builds products that capture the spirit of golf. TruGolf's mission is to help grow the game by attempting to make it more Available, Approachable, and Affordable through technology - because TruGolf believes Golf is for Everyone. TruGolf's team has built award-winning video games ("Links"), innovative hardware solutions, and an all-new e-sports platform to connect golfers around the world with E6 CONNECT. Since TruGolf's beginning, TruGolf has continued to attempt to define and redefine what is possible with golf technology.
| Contact: | Michael Bacal |
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mbacal@darrowir.com |
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| 917-886-9071 | |
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
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March 31, |
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December 31, |
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2025 |
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2024 |
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(Unaudited) |
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| ASSETS |
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| Current Assets: |
||||||||
| Cash and cash equivalents | $ | 10,515,820 | $ | 8,782,077 | ||||
| Restricted cash | 2,100,000 | 2,100,000 | ||||||
| Accounts receivable, net | 1,579,614 | 1,399,153 | ||||||
| Inventory, net | 3,852,977 | 2,349,345 | ||||||
| Prepaid expenses and other current assets | 189,961 | 116,619 | ||||||
| Other current assets | - | 45,737 | ||||||
| Total Current Assets |
18,238,372 | 14,792,931 | ||||||
| Property and equipment, net | 192,711 | 143,852 | ||||||
| Capitalized software development costs, net | 1,710,652 | 1,540,121 | ||||||
| Right-of-use assets | 545,915 | 634,269 | ||||||
| Other long-term assets | 31,023 | 31,023 | ||||||
| Total Assets |
$ | 20,718,673 | $ | 17,142,196 | ||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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| Current Liabilities: |
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| Accounts payable | $ | 2,563,454 | $ | 2,819,703 | ||||
| Deferred revenue | 4,141,790 | 3,113,010 | ||||||
| Notes payable, current portion | 10,148 | 10,001 | ||||||
| Notes payable to related parties, current portion | 2,937,000 | 2,937,000 | ||||||
| Line of credit, bank | 802,738 | 802,738 | ||||||
| Dividend notes payable | 4,023,923 | 4,023,923 | ||||||
| Accrued interest | 565,402 | 661,376 | ||||||
| Accrued and other current liabilities | 2,823,067 | 999,307 | ||||||
| Accrued and other current liabilities - assumed in Merger | 45,008 | 45,008 | ||||||
| Lease liability, current portion | 296,291 | 363,102 | ||||||
| Total Current Liabilities |
18,208,821 | 15,775,168 | ||||||
| Non-current Liabilities: |
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| Notes payable, net of current portion | 7,137 | 9,732 | ||||||
| Note payables to related parties, net of current portion | 624,000 | 624,000 | ||||||
| PIPE loan payable, net | 5,165,893 | 4,068,953 | ||||||
| Gross sales royalty payable | 1,000,000 | 1,000,000 | ||||||
| Lease liability, net of current portion | 278,071 | 305,125 | ||||||
| Total Liabilities |
25,283,922 | 21,782,978 | ||||||
| Commitments and Contingencies |
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| Stockholders’ Deficit: |
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| Preferred stock, $0.0001 par value, 10 million shares authorized; zero shares issued and outstanding, respectively | - | - | ||||||
| Common stock, $0.0001 par value, 100,000,000 shares authorized: | ||||||||
| Common stock - Series A, $0.0001 par value, 90 million shares authorized; 29,184,965 and 26,120,545 shares issued and outstanding, respectively | 2,918 | 2,612 | ||||||
| Common stock - Series B, $0.0001 par value, 10 million shares authorized; 1,716,860 and 1,716,860 shares issued and outstanding, respectively | 172 | 172 | ||||||
| Treasury stock at cost, 4,692 shares of common stock held, respectively | (2,037,000 | ) | (2,037,000 | ) | ||||
| Additional paid-in capital | 21,294,479 | 18,548,931 | ||||||
| Accumulated deficit | (23,825,818 | ) | (21,155,496 | ) | ||||
| Total Stockholders’ Deficit |
(4,565,249 | ) | (4,640,781 | ) | ||||
| Total Liabilities and Stockholders’ Deficit |
$ | 20,718,673 | $ | 17,142,196 | ||||
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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For the |
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For the |
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Three Months Ended |
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Three Months Ended |
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March 31, 2025 |
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March 31, 2024 |
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| Revenue, net | $ | 5,389,230 | $ | 5,012,022 | ||||
| Cost of revenue | 1,726,199 | 1,959,023 | ||||||
| Total gross profit | 3,663,031 | 3,052,999 | ||||||
| Operating expenses: | ||||||||
| Royalties | 225,320 | 329,888 | ||||||
| Salaries, wages and benefits | 1,946,816 | 1,841,595 | ||||||
| Selling, general and administrative | 2,725,119 | 1,825,201 | ||||||
| Total operating expenses | 4,897,255 | 3,996,684 | ||||||
| Loss from operations | (1,234,224 | ) | (943,685 | ) | ||||
| Other (expenses) income: | ||||||||
| Interest income | 54,596 | 30,587 | ||||||
| Interest expense | (1,490,694 | ) | (384,854 | ) | ||||
| Loss on investment | - | (3,912 | ) | |||||
| Total other expense | (1,436,098 | ) | (358,179 | ) | ||||
| Loss from operations before provision for income taxes | (2,670,322 | ) | (1,301,864 | ) | ||||
| Provision for income taxes | - | - | ||||||
| Net loss | $ | (2,670,322 | ) | $ | (1,301,864 | ) | ||
| Net loss per common share Series A - basic and diluted | $ | (0.09 | ) | $ | (0.22 | ) | ||
| Net loss per common share Series B - basic and diluted | $ | (1.56 | ) | $ | (1.14 | ) | ||
| Weighted average shares outstanding Series A - basic and diluted | 28,461,277 | 5,994,704 | ||||||
| Weighted average shares outstanding Series B - basic and diluted | 1,716,860 | 1,144,573 | ||||||
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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For the |
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For the |
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Three Months Ended |
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Three Months Ended |
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March 31, 2025 |
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March 31, 2024 |
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| Cash flows from operating activities: | ||||||||
| Net loss | $ | (2,670,322 | ) | $ | (1,301,864 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 115,300 | 36,105 | ||||||
| Amortization of convertible notes discount | 231,940 | 947 | ||||||
| Amortization of right-of-use asset | 88,354 | 82,454 | ||||||
| Change in OCI | - | 1,662 | ||||||
| Stock issued for make good provisions on debt conversion | 1,087,513 | - | ||||||
| Stock options issued to employees | 3,341 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (180,461 | ) | 468,422 | |||||
| Inventory, net | (1,503,632 | ) | (216,569 | ) | ||||
| Prepaid expenses | (73,342 | ) | 200,278 | |||||
| Other current assets | 45,737 | 2,478,953 | ||||||
| Accounts payable | (256,248 | ) | 1,146,347 | |||||
| Deferred revenue | 1,028,780 | 90,524 | ||||||
| Accrued interest payable | (95,974 | ) | 82,759 | |||||
| Accrued and other current liabilities | 1,823,760 | (321,090 | ) | |||||
| Lease liability | (93,865 | ) | (80,311 | ) | ||||
| Net cash provided by (used in) operating activities | (449,119 | ) | 2,668,617 | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (64,159 | ) | (332,342 | ) | ||||
| Capitalized software, net | (270,531 | ) | - | |||||
| Net cash used in investing activities | (334,690 | ) | (332,342 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from PIPE loans, net of discount | 2,520,000 | 4,320,000 | ||||||
| Cash acquired in Merger | - | 103,818 | ||||||
| Increase in other liabilities | - | 18,545 | ||||||
| Costs of Merger paid from PIPE loan | - | (2,082,787 | ) | |||||
| Repayments of line of credit | - | (1,980,937 | ) | |||||
| Repayments of liabilities assumed in Merger | - | (15,716 | ) | |||||
| Repayments of notes payable | (2,448 | ) | (2,295 | ) | ||||
| Repayments of notes payable - related party | - | (268,500 | ) | |||||
| Net cash provided by financing activities | 2,517,552 | 92,128 | ||||||
| Net change in cash , cash equivalents and restricted cash | 1,733,743 | 2,428,403 | ||||||
| Cash, cash equivalents and restricted cash - beginning of year | 10,882,077 | 5,397,564 | ||||||
| Cash, cash equivalents and restricted cash - end of year | $ | 12,615,820 | $ | 7,825,967 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid for: | ||||||||
| Interest | $ | 108,993 | $ | 302,095 | ||||
| Income taxes | $ | - | $ | - | ||||
| Non-cash investing and financing activities: | ||||||||
| PIPE note principal converted to Class A Common Stock | $ | 1,655,000 | $ | - | ||||
| Notes payable assumed in Merger | $ | - | $ | 1,565,000 | ||||
| Accrued liabilities assumed in Merger | $ | - | $ | 310,724 | ||||
| Remeasurement of common stock exchanged/issued in Merger | $ | - | $ | (1,875,724 | ) | |||
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
