Newton Golf Company (NWTG) AI Stock Analysis

• Market Cap: $7.27M
• Dividend Yield: N/A
• Average Volume (3M): 121.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: 178.32%
• EPS Growth: 70.79%
• Country: US
• Employees: 28
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): -0.34
• Shares Outstanding: 4,752,463
• 10 Day Avg. Volume: 82,460
• 30 Day Avg. Volume: 121,730
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.16
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -0.15
• Enterprise Value/Market Cap: 0.59
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: -0.69
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $1.50 ▼(-3.85% Downside)

The score is held back primarily by deep unprofitability and ongoing cash burn despite strong revenue growth and high gross margins. Technicals are neutral with mixed long-term trend signals, valuation is limited by negative earnings and no dividend, and recent corporate updates on record revenue expectations and expansion provide a modest offset.

Positive Factors

Revenue Growth

Sustained top-line expansion (TTM revenue +24.7% to $6.9M) indicates durable demand and successful product launches. Growing revenue provides a runway to absorb fixed costs, justify manufacturing scale-up investments, and supports longer-term margin improvement if growth continues.

High Gross Margin

A ~68.7% gross margin reflects strong product-level economics from premium shafts, clubs and DTC sales. Elevated margins give the company structural leverage: with disciplined SG&A scaling, gross profitability can be converted into operating leverage and eventual sustainable earnings.

Product Leadership & Market Expansion

Market share gains (No.1 shaft at Club Champion), PGA TOUR usage, fitter/influencer relationships and entry into Japan/South Korea establish durable competitive positioning. International distribution and stronger commercial channels broaden TAM and reduce reliance on any single market or channel.

Negative Factors

Large Operating Losses

Deep and persistent operating losses (EBIT ≈ -92.5%) and extreme net losses signal structural profitability challenges. Unless operating costs scale down relative to revenue or gross margins expand further, continued losses will impair returns and the business may remain unprofitable for the medium term.

Negative Cash Generation

Sustained negative operating cash flow (~-$5.6M TTM) and free cash flow (~-$6.0M) indicate the business consumes cash as it grows. This structural cash burn creates ongoing financing needs, constrains reinvestment flexibility, and raises vulnerability to slower growth or higher working capital demands.

Financing / Dilution Risk

The ATM agreement (up to $10M) and approved equity incentive plan show reliance on equity funding to support operations and growth. With ongoing losses and cash burn, further share issuance is likely, posing dilution risk and reflecting dependence on external capital rather than internally generated cash.

Newton Golf Company Business Overview & Revenue Model

Company Description

Newton Golf Company (NWTG) is a leading manufacturer and retailer of innovative golf equipment and accessories. Operating within the sports and recreation sector, NWTG specializes in high-performance golf clubs, balls, apparel, and technology-driven training aids. The company is dedicated to enhancing the golfing experience through quality products designed for players of all skill levels, from beginners to professionals.

How the Company Makes Money

Newton Golf Company generates revenue through multiple streams, primarily by selling its golf equipment and accessories directly to consumers via its online platform and through partnerships with retail stores. Key revenue streams include the sale of golf clubs, balls, and apparel, which are consistently in demand. Additionally, NWTG capitalizes on its proprietary technology by offering premium training aids and coaching software that attract golf enthusiasts looking to improve their game. Significant partnerships with golf courses, professional tournaments, and sponsorship agreements also contribute to its earnings by enhancing brand visibility and creating collaborative marketing opportunities.

Newton Golf Company Financial Statement Overview

Summary

Strong TTM revenue growth ($6.9M, +24.7%) and high/improving gross margin (~68.7%) are positives, but they are outweighed by very large operating losses (EBIT margin ~-92.5%), extremely negative net margin (~-172.7%), and substantial cash burn (TTM OCF ~$-5.6M; FCF ~$-6.0M). Low debt (~$0.1M) helps, but ongoing losses remain the main constraint.

Income Statement

TTM (Trailing-Twelve-Months) revenue accelerated sharply to $6.9M (24.7% growth) versus $3.4M in 2024, and gross margin improved to ~68.7% (from ~66.0% in 2024), showing healthy product-level economics. However, operating losses remain very large (EBIT margin about -92.5% TTM), and the company is still deeply unprofitable (net margin about -172.7% TTM). While losses are less extreme than 2022–2023 on a margin basis, profitability has not yet scaled with the higher revenue base.

Balance Sheet

Leverage appears low in the latest period, with total debt of ~$0.1M and a low debt-to-equity ratio (~0.03 TTM), which reduces near-term balance-sheet stress. Total assets are ~$5.3M. A key risk is equity quality/volatility: equity was negative in several prior years (including 2024), and despite being positive in the latest period, returns on equity are very weak given ongoing losses (ROE about -5.7 TTM). Overall, the balance sheet looks lightly levered but still vulnerable to continued losses.

Cash Flow

Cash generation remains a major weakness. TTM (Trailing-Twelve-Months) operating cash flow is negative (~-$5.6M) and free cash flow is also negative (~-$6.0M), indicating the business is consuming cash as it grows. While free cash flow growth is positive versus the prior period, the level of cash burn remains high and will likely require continued funding if sustained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.93M	3.44M	349.00K	190.00K	200.00K	182.00K
Gross Profit	4.76M	2.27M	122.00K	80.00K	84.00K	141.00K
EBITDA	-6.13M	-4.81M	-4.60M	-2.86M	0.00	0.00
Net Income	-11.97M	-11.75M	-4.63M	-3.50M	-302.00K	-479.00K
Balance Sheet
Total Assets	5.25M	9.77M	6.39M	710.00K	263.00K	201.00K
Cash, Cash Equivalents and Short-Term Investments	2.55M	7.65M	5.34M	147.00K	184.00K	100.00K
Total Debt	106.00K	34.00K	65.00K	944.00K	1.21M	953.00K
Total Liabilities	2.20M	14.95M	604.00K	2.59M	1.70M	1.36M
Stockholders Equity	3.06M	-5.19M	5.79M	-1.88M	-1.44M	-1.16M
Cash Flow
Free Cash Flow	-6.02M	-5.43M	-5.34M	-860.00K	-171.00K	-228.00K
Operating Cash Flow	-5.60M	-4.93M	-5.05M	-785.00K	-171.00K	-228.00K
Investing Cash Flow	-423.00K	-502.00K	-289.00K	-75.00K	0.00	0.00
Financing Cash Flow	7.26M	7.74M	10.50M	847.00K	255.00K	316.00K

Newton Golf Company Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWTG, the sentiment is Negative. The current price of 1.56 is below the 20-day moving average (MA) of 1.64, above the 50-day MA of 1.55, and below the 200-day MA of 1.68, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 19.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NWTG.

Newton Golf Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESCA	72 Outperform	$196.57M	15.64	7.42%	4.71%	-4.56%	-2.85%
GOLF	70 Outperform	$5.56B	25.94	25.91%	1.15%	4.20%	24.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JOUT	60 Neutral	$471.56M	-13.25	-7.78%	3.22%	-0.07%	-31.45%
AOUT	49 Neutral	$108.88M	-19.46	-3.19%	―	2.85%	24.82%
NWTG	48 Neutral	$7.27M	-0.05	-383.63%	―	178.32%	70.79%

Newton Golf Company Corporate Events

Newton Golf Expects Record 2025 Revenue on Strong Demand

On January 6, 2026, Newton Golf Company reported that for 2025 it expects to deliver record full-year revenue above its prior guidance range of $7.0 million to $7.5 million, driven by its strongest-ever product launch with the Fast Motion shaft, record Black Friday sales, and continued growth in its direct-to-consumer channel. The company strengthened its brand position by becoming the No. 1 selling shaft for drivers and fairway woods at Club Champion in 2025, gaining usage and wins on the PGA TOUR Champions, and expanding influencer and fitter relationships, while simultaneously scaling manufacturing capacity, investing in systems and controls, and entering new markets through the launch of NewtonGolf.jp and distribution initiatives in Japan and South Korea, moves that management characterizes as creating a stronger operational and commercial foundation for further growth in 2026 and beyond.

The most recent analyst rating on (NWTG) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Newton Golf Company stock, see the NWTG Stock Forecast page.

Newton Golf Shareholders Elect Directors, Approve Equity Plan

At its annual meeting of stockholders held on December 18, 2025, Newton Golf Company’s shareholders elected four directors—Greg Campbell, Jane Casanta, Brett Hoge, and Akinobu Yorihiro—to serve until the next annual meeting or until their successors are duly appointed. Stockholders also ratified the appointment of Weinberg & Company, P.A. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the Amended and Restated 2022 Equity Incentive Plan, collectively reinforcing the company’s existing governance framework, financial oversight, and long-term incentive structure for management and employees.

The most recent analyst rating on (NWTG) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Newton Golf Company stock, see the NWTG Stock Forecast page.