0001683168-26-002825
SEC filingThe Marquie Group's Q3 2026 results reflect the initial revenue generation from its new golf operations, but were overshadowed by significantly widened operating and net losses, raising substantial doubt about the company's ability to continue as a going concern.
This quarter marks The Marquie Group's operational pivot into the golf industry, generating its first revenue of $448.3K. This initiation follows the strategic acquisition of GETGOLF, LLC and is directly attributable to the consolidation of GetGolf and Stand By Golf during the quarter ended February 28, 2026. Revenue stems from the initial monetization of the company's vertically integrated model, which seeks to combine proprietary technology with physical golf assets. Management describes this model as offering strategic advantages in data collection, pricing optimization, and customer engagement. GETGOLF is positioned for global expansion as part of TMGI, and assets like the Apache Creek Golf Club serve as both standalone operating assets and strategic testing grounds for technology-enabled operations. This foundational step executes the company's strategy, though it concurrently exposes the Company to competition in both the software and physical operations segments of the golf industry.
Despite initiating revenue, profitability metrics deteriorated significantly. Gross profit was $118.9K, resulting in a gross margin of 26.5%. The operating loss deepened to -$322.3K, representing an operating margin of -71.9%. This represents a substantial year-over-year increase in operating losses. Management commentary indicates that selling, general and administrative expenses are anticipated to increase commensurate with an increase in operations. The largest expense items in this category are identified as investor relations and commissions as the company continues to raise capital. These factors, combined with the costs of integrating recent acquisitions, drove the significant operating loss. The net loss widened dramatically to -$1.7M, and diluted earnings per share was -$0.56. The year-over-year decline in net income was approximately 1,453%, underscoring the financial impact of the company's strategic investments and operational scaling during this transitional period.
Management's outlook is centered on continued investment in its vertically integrated golf strategy. The company expects that salaries, consulting expenses, and professional fees will increase with planned acquisitions of golf courses and as operations scale up. The strategic intent is to more fully deploy platforms like Stand By Golf. However, execution risks are inherent. The company is in the early stages of deploying its golf technology strategy and acknowledges the competitive pressures from both software and physical golf operators. The requirement for continued capital raising to fund operations and growth, coupled with the current liquidity constraints, constitutes a material challenge. Management believes that, based on current facts and circumstances, applying other reasonable judgments would not materially affect the presented results, but the overall financial condition highlights the precarious nature of the company's transition and growth phase.