StockNews.AI
TRUG
StockNews.AI
96 days

TruGolf Reports First Quarter 2025 Financial Results Q1 2025 Sales Grow 7.5% Over Q1 2024

1. TRUG reported Q1 2025 sales of $5.4 million, up 7.5% from 2024. 2. Net losses doubled to $2.6 million due to interest expenses. 3. EPS improved to ($0.09) from ($0.22) year-over-year. 4. Gross margin increased to 68% compared to 61% in 2024. 5. The company plans to reduce debt and open franchise locations soon.

Earnings
+12.83%Current Return
VS
+0.64%S&P 500
$0.22605/15 09:23 PM EDTEvent Start
$0.25505/18 09:24 PM EDTLatest Updated
13m saved
Insight
Article

FAQ

Why Bullish?

Despite increased losses, improved EPS and growth in sales signal potential for recovery. Historical trends show companies with improving margins and initiatives to reduce debt often see positive stock performance.

How important is it?

The growth in sales and improvement in gross margin are critical indicators for investors, suggesting upward momentum despite current losses.

Why Short Term?

Expected franchise openings and new product launches may catalyze sales growth quickly, impacting stock performance in the near term.

Related Companies

GOEVFUVNEE
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. TRUGOLF HOLDINGS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS   March 31,  December 31,   2025  2024     (Unaudited)      ASSETS                 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                 Current Liabilities:        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:        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                 Stockholders’ Deficit:        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(Unaudited)   For the  For the   Three Months Ended  Three Months Ended   March 31, 2025  March 31, 2024        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(Unaudited)   For the  For the   Three Months Ended  Three Months Ended   March 31, 2025  March 31, 2024        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)

Related News