By Thomas Kerr, CFA
NASDAQ:NWTG
READ THE FULL NWTG RESEARCH REPORT
Preliminary 2025 Revenue Results
On January 6, 2026, Newton Golf (NASDAQ:NWTG) announced that 2025 revenues will exceed its previously announced guidance of between $7.0-$7.5 million for the full year. These results are preliminary and unaudited. Our estimate was $7.4 million for 2025.
The company achieved record single-day sales on Black Friday, which reflected strong consumer demand across its key product lines. Direct-to-consumer sales (internet, email, social media) continued to grow, which was supported by improving marketing efficiency, higher conversion rates, and strong repeat purchase behavior.
New Product Rollout
On January 13, 2026, the company announced it will debut a new line of golf shafts at the PGA Show next week in Orlando. The PGA Show is the world's largest annual trade event for the golf industry, with participation from professionals, buyers, manufacturers, vendors, and media to learn about the latest equipment, technology, apparel, and trends.
Newton will debut new Fast Motion™️ fairway wood shafts, introduce dedicated hybrid shafts across all product offerings for the first time, and present refined 2026 versions of its existing Fast Motion driver and Motion™️ driver and fairway shafts. This expanded product lineup follows a strong 2025 performance for Newton Golf’s shaft business, in which it became the #1 selling shaft position for both drivers and fairway woods at Club Champion, a large professional club-fitting retailer with over 140 locations.
For 2026, Newton Golf will build on the proven performance of its core shaft products, which was driven by extensive work with professional and amateur golfers. The company will focus on strengthening its shaft lineup as an integrated matching dot system, addressing the challenge golfers face in achieving consistency across drivers, fairway woods, and hybrids due to differences in weight, feel, and performance. Rather than forcing players to adapt driver shafts to fairway woods and then to different hybrid shafts, the matching dot system delivers uniform performance and feel throughout the bag.
- Newton Fast Motion Fairway Wood Shafts – The lighter Fast Motion Fairway Wood shafts extend Newton’s physics-based approach beyond the driver. Unlike competitors that recommend converting a driver shaft for fairway woods by giving tip trimming guides, Newton Golf designs fairway shafts from the ground up to account for smaller but heavier clubheads, turf interaction, different spin targets, and the desire for higher ball flight while improving speed, accuracy, and feel.
- Newton Hybrid Shafts (Motion and Fast Motion) – Newton Golf will introduce dedicated hybrid shafts engineered to deliver consistent feel and response across driver, fairway, and hybrid. The design helps reduce swing adjustments between clubs and improves control in scoring situations.
- Updated 2026 Newton Motion Driver and Fairway Shafts – The company will also showcase refined 2026 versions of its Fast Motion™ Driver and Motion™ Driver and Fairway shafts, incorporating improved consistency, streamlined specifications across the lineup, and tighter manufacturing tolerances while preserving feel and performance characteristics.
- Also on display at the show will be the current full Newton Gravity putter line.
Valuation and Estimates
The company announced that its full-year 2025 revenues will exceed its guidance of $7.0 million to $7.5 million, although no figures or dollar amounts were mentioned in the announcement. We project that 2025 revenues were approximately $7.7 million.
Our primary valuation tool utilizes a Discounted Cash Flow process. Based on higher than expected revenues, which implies a faster time frame to cash flow breakeven, we raise our target price to $6.50 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.
Our 2025 full year revenue estimate is now $7.71 million. Our 2025 GAAP EPS estimate is a loss of ($1.56). For 2026, we believe the company can continue to generate strong double-digit revenue growth. Our revenue estimate for 2026 is $13.1 million, and our 2026 EPS estimate is a loss of ($0.06).
We expect the company to reach cash flow breakeven at some point in calendar year 2026.
The company is selling at 63% of 2026 estimated revenues, which is a significant discount to other fast growing sporting goods companies.
The current market cap of only $8.4 million appears to be irrational and more reflective of the ongoing microcap stock malaise as opposed to company fundamentals.
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