10-K - Newton Golf Company | StockGist

AI Analysis

AI-generated analysis. Always verify with the original filing.

Revenue more than doubled to $8.1M from Newton Motion shaft expansion, driving gross profit growth to $4.6M despite labor pressures from scaling production, while operating losses widened on growth investments and net loss narrowed from prior-year levels amid ongoing cash burn.

Key Takeaways

1Revenue increased 136% to $8.1M from $3.4M, driven by higher sales volumes from expansion of the Newton Motion shaft product line.

2Gross profit rose 100% to $4.6M with 56.0% margin, as premium shaft products supported margins amid increased production volumes.

3Operating loss expanded 52% to -$7.5M versus -$5.0M, reflecting investments in sales, marketing, and infrastructure to support revenue growth.

4Net loss improved 49% to -$6.0M from -$11.8M, with diluted EPS at -$1.63 versus -$178.33, due to absence of prior-year financing costs.

5Gross margin decrease attributable to additional labor costs from incremental full-time employees, temporary labor, and overtime to meet surging demand.

6Free cash flow was -$5.6M on -$5.2M operating cash use and $0.5M capex, as the Company formalizes demand planning for efficiency.

Key Financial Metrics

EPS

$-1.63

99.1%

Revenue

$8.1M

136.1%

Net Income

-$6.0M

48.8%

Gross Margin

56.0%

Gross Profit

$4.6M

100.3%

free cash flow

-$5.6M

Operating Income

-$7.5M

-51.6%

operating margin

-92.8%