By Thomas Kerr, CFA
NASDAQ:NWTG
READ THE FULL NWTG RESEARCH REPORT
At-The-Market Equity Offering
On October 24, 2025, Newton Golf (NASDAQ:NWTG) initiated an ATM equity offering for up to $10.0 million. Under the ATM program, Newton Golf may sell newly issued shares on occasion at prevailing market prices at its discretion. This program enables efficient access to incremental growth capital while aligning issuance with current market liquidity. Kingswood U.S. will act as sales agent for these transactions.
New Consumer Direct Website in Japan
On October 28, 2025, the company announced the launch of its dedicated Japanese e-commerce site.
The new platform enables golfers in Japan to purchase Newton’s performance-engineered products directly, which marks a significant milestone in the company’s international expansion plans.
Dr. Greg Campbell, Executive Chairman and CEO, stated, “Japan is the world’s second largest golf market and represents a major opportunity for Newton Golf. Launching NewtonGolf.jp allows us to meet that demand directly, providing golfers in Japan with the same advanced performance technology and customer experience that have driven our growth in North America.”
The new website can be found here: www.newtongolf.jp
Business Highlights
- Players using Newton shafts had good success at the 2025 World Long Drive (WLD) Championship. Tanner Pipes captured the Men’s Amateur title with a 396-yard drive, showcasing Newton’s performance advantage on the tee. He was joined by 2017 WLD Champion Justin James, who advanced to the Final 4 in the Men’s Open Division, and Jeanine Minnick, who reached the Final 8 in the Women’s.
- Doug Barron captured the Pure Insurance Championship victory with Newton shafts at Pebble Beach. Barron delivered a strong finish with three straight birdies, including a clutch putt on the iconic par-5 18th hole at Pebble Beach, to claim his 4th career PGA TOUR Champions title and first win of the 2025 season. Barron ranked inside the Top 10 in driving accuracy for the week (78.6%), further showcasing the stability and control he’s achieved with Newton shafts this season.
- Newton Motion shaft adoption increased to over 50 professionals, with 8 new players joining across PGA TOUR Champions, LPGA, and the Korn Ferry Tour.
- An unsolicited and unsponsored article praising Newton Shafts occurred on April 23, 2025, on Golf.com. The title of the article was “Why Newton Motion shafts are taking over the Champions Tour”. The full article can be found here.
- 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 with two of Japan’s largest golf retailers, extending Newton’s international reach.
- Increased production capacity to meet accelerating demand for Motion and Fast Motion shafts.
- Experienced significant growth in direct-to-consumer sales through NewtonGolfCo.com.
- Miguel Ángel Jiménez earned his second PGA TOUR Champions victory using the Newton Fast Motion shaft
- In April 2025, the company announced the appointment of Andy Harris and Jeff Opheim as Tour representatives for the PGA TOUR, PGA TOUR Champions, and Korn Ferry Tour. Company Founder and Chief Technology Officer, Aki Yorihiro, will take on a key role as Tour Representative for the LPGA and PGA TOUR Champions.
Valuation and Estimates
The company recently raised its full-year 2025 revenue guidance to a range of $7.0 million to $7.5 million, up from the prior range of $6.5 million to $7.0 million issued last quarter, reflecting stronger-than-anticipated demand and continued momentum across key channels.
Our primary valuation tool utilizes a Discounted Cash Flow process. Based on growth and profitability projections, our DCF-based valuation target is approximately $6.00 per share. Our target price may be conservative as it incorporates a high discount rate of 15.0% due to the unpredictability of earnings, prevailing interest rates, and the timeline for reaching net profitability on an annual basis.
Recently, popular putter manufacturer L.A.B. Golf was acquired by a private equity firm in a deal reportedly valued at over $200 million. Reports indicate that L.A.B. Golf may sell almost 400,000 units in 2025, with putters priced at approximately $500. 2025 revenues could be in the range of $200 million.
Based on 1x our 2026 estimated revenues of approximately $11.1 million, a theoretical acquisition would show 68.2% upside in NWTG stock.
We have not changed our estimates at this time as we await the 3rd quarter 2025 earnings release.
Our 2025 full year revenue estimate is $7.35 million. Our 2025 GAAP EPS estimate is a loss of ($1.25). For 2026, we believe the company can continue to generate strong double-digit revenue growth, and our revenue estimate for 2026 is $11.1 million, and our 2026 EPS estimate is a loss of ($0.08).
We expect the company to reach cash flow breakeven in calendar year 2026.
The current market cap of only $6.6 million appears to be irrational and more reflective of the ongoing microcap stock malaise as opposed to company fundamentals.
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