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TruGolf Reports First Quarter 2026 Results
Salt Lake City, Utah, May 21, 2026 (GLOBE NEWSWIRE) -- TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, yesterday reported its first quarter 2026 results.
Q1 2026 vs. Q1 2025:
Financial Highlights
• Revenue: $5.0 million for the first quarter 2026 vs. $5.2 million in the first quarter 2025. The year-on-year sales decline primarily reflected a modest decline in the sale of golf simulators which was somewhat offset by slightly higher software contracts.
• Net Loss: $(1.4) million for the 2026 first quarter as compared to $(2.7) million for the 2025 period.
• Total operating expenses declined by 14.9% in Q1 2026 as compared to the 2025 period.
• Net cash used by operations in Q1 2026 declined to $0.1 million from $0.4 million in Q1 2025.
“Q1 was a solid start to the year for TruGolf but we have greater expectations to grow the top line over the course of 2026 through greater market adoption of the new products and features we have been introducing in the last 12 months.” Said Chris Jones, CEO and Director of TruGolf. “To assist in our sales efforts, we have added David Harper as Head of Global Sales during the quarter. David has extensive experience in developing and expanding sales efforts and we are excited about the potential for greater concentrated efforts in this area. Additionally, we have continued to enhance our finance team by the recent addition of Steven Passey as Chief Financial Officer. Steven’s experience in improving the financial processes and operations of smaller organizations makes him an ideal fit for our current needs.” Mr. Jones concluded, “Finally, we are excited by the recent announcements of two TruGolf Links flagship locations on Long Island, New York, both of which are targeted to open before year end. We continue to expect our first flagship franchise location for TruGolf Links to open in Cherry Hill New Jersey later in the second quarter.”
Q1 2026 Results:
First quarter 2026 sales were $5.0 million, down from first quarter 2025 sales of $5.2 million. Golf simulator revenues were down $0.2 million or 4.4% year-over-year in the quarter, while software contracts modestly increased.
Salaries in Q1 2026 declined 59.2% to $0.8 million from $1.9 million in Q1 2025. This change was the result of the company now capitalizing the salary component of software development costs. Selling, General & Administrative (SG&A) costs increased 16.8%, or $3.2 million from $2.7 million due to increased amortization from the aforementioned capitalized software development costs.
Interest expense in Q1 2026 declined by 89.2% to $0.2 million from $1.5 million in Q1 2025. The decline was the result of earlier efforts to restructure the Company’s debt and convert it into preferred shares. Net loss for the quarter declined to $1.4 million from $2.6 million in the 2025 period.
In the first quarter of 2026 the Company repurchased 439,208 shares for $346,503 under the previously announced share repurchase plan.
Operations:
Cost of revenues in the quarter increased $0.5 million primarily due to the new inclusion of warehouse employee salaries and wages of $0.2 million and an increase of $0.2 million in shipping costs compared to the 2025 Q1 costs. As a result, gross profit for Q1 2026 declined $0.8 million to $2.7 million from $3.4 million in Q1 2025. Gross margin declined to 53.0% in Q1 2026 from 68% in the 2025 period.
The 2026 first quarter loss from operations increased $0.1 million to $(1.3 million), compared to $(1.2 million) for the 2025 period. Net cash used in Q1 2026 operating activities decreased to $0.1 million as compared to $0.4 million during the first quarter of 2025. The period over period change was primarily attributable to favorable changes in working capital, including increases in deferred revenue and accounts payable, partially offset by changes in inventory and accounts receivable. During Q1 2026, our net cash used in investing activities was $1.1 million as compared to net cash used in investing activities of $0.3 million during Q1 2025. The increase in cash used in investing activities was primarily due to an increase in capitalized costs for software development. The Company ended the first quarter of 2026 with $10.9 million in cash on hand, down $1.6 million from the $12.6 million in cash on hand at the end of Q4 2025.
Net Loss decreased to $1.4 million for 2026’s first quarter, compared to $2.7 million for the 2025 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 Company's anticipated Cherry Hill, New Jersey opening in the second quarter and the success of the TruGolf Links franchise rollout. 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.
CONTACTS:
Michael Bacal
mbacal@darrowir.com
917-886-9071
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 8,836,670 | $ | 10,469,263 | ||||
| Restricted cash | 2,100,000 | 2,100,000 | ||||||
| Accounts receivable, net | 1,314,837 | 1,060,709 | ||||||
| Inventory, net | 1,360,668 | 863,257 | ||||||
| Prepaid expenses | 766,947 | 985,076 | ||||||
| Total Current Assets | 14,379,122 | 15,478,305 | ||||||
| Property and equipment, net | 411,054 | 355,499 | ||||||
| Capitalized software development costs, net | 4,230,512 | 3,633,661 | ||||||
| Right-of-use assets | 551,116 | 682,648 | ||||||
| Other long-term assets | 31,023 | 31,023 | ||||||
| Total Assets | $ | 19,602,827 | $ | 20,181,136 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 3,186,999 | $ | 2,767,385 | ||||
| Deferred revenue | 6,610,869 | 5,560,725 | ||||||
| Notes payable, current portion | 294,138 | 296,733 | ||||||
| Notes payable to related parties | 2,250,000 | 2,250,000 | ||||||
| Line of credit, bank | 802,738 | 802,738 | ||||||
| Dividend notes payable | 118,362 | 118,362 | ||||||
| Accrued interest | 594,461 | 594,590 | ||||||
| Accrued and other current liabilities | 1,405,705 | 1,508,750 | ||||||
| Lease liability, current portion | 398,302 | 502,526 | ||||||
| Total Current Liabilities | 15,661,574 | 14,401,809 | ||||||
| Non-current Liabilities: | ||||||||
| Note payables, net of current portion | 268,500 | 287,000 | ||||||
| Gross sales royalty payable | 1,000,000 | 1,000,000 | ||||||
| Lease liability, net of current portion | 164,664 | 191,944 | ||||||
| Total Liabilities | 17,094,738 | 15,880,753 | ||||||
| Commitments and Contingencies | ||||||||
| Stockholders’ Equity: | ||||||||
| Preferred stock, $0.0001 par value, 10 million shares authorized | ||||||||
| Series A Convertible Preferred Stock, $0.0001 par value per share; authorized - 50,000 shares; 4,140 and 5,427 shares issued and outstanding, respectively. Liquidation preference of $3,922,680 as of March 31, 2026 | - | 1 | ||||||
| Common stock, $0.0001 par value, 1,000,000 shares authorized: | ||||||||
| Common stock - Series A, $0.0001 par value, 1 billion shares authorized; 641,006 and 422,899 shares issued and outstanding, respectively | 63 | 41 | ||||||
| Common stock - Series B, $0.0001 par value, 10 million shares authorized; 19,999 shares issued and outstanding, respectively | 2 | 2 | ||||||
| Treasury stock at cost, 9 shares of common stock held, respectively | (2,382,000 | ) | (2,037,000 | ) | ||||
| Additional paid-in capital | 49,376,386 | 47,413,839 | ||||||
| Accumulated deficit | (44,486,362 | ) | (41,076,500 | ) | ||||
| Total Stockholders’ Equity | 2,508,089 | 4,300,383 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 19,602,827 | $ | 20,181,136 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
| For the | For the | |||||||
| Three Months Ended | Three Months Ended | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Revenue, net | $ | 5,020,262 | $ | 5,237,825 | ||||
| Cost of revenue | 2,337,266 | 1,800,114 | ||||||
| Total gross profit | 2,682,996 | 3,437,711 | ||||||
| Operating expenses: | ||||||||
| Salaries, wages and benefits | 793,411 | 1,946,816 | ||||||
| Selling, general and administrative | 3,184,164 | 2,725,119 | ||||||
| Total operating expenses | 3,977,575 | 4,671,935 | ||||||
| Loss from operations | (1,294,579 | ) | (1,234,224 | ) | ||||
| Other (expense) income: | ||||||||
| Interest income | 54,448 | 54,596 | ||||||
| Interest expense | (207,163 | ) | (1,490,694 | ) | ||||
| Total other expense | (152,715 | ) | (1,436,098 | ) | ||||
| Loss from operations before provision for income taxes | (1,447,294 | ) | (2,670,322 | ) | ||||
| Provision for income taxes | - | - | ||||||
| Net loss | $ | (1,447,294 | ) | $ | (2,670,322 | ) | ||
| Net loss per common share - basic and diluted | $ | (2.75 | ) | $ | (44.24 | ) | ||
| Weighted average shares outstanding - basic and diluted | 527,000 | 60,356 | ||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the | For the | |||||||
| Three Months | Three Months | |||||||
| March 31, 2026 | March 31, 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (1,447,294 | ) | $ | (2,670,322 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 491,896 | 115,300 | ||||||
| Amortization of convertible notes discount | - | 231,940 | ||||||
| Amortization of right-of-use asset | 131,532 | 88,354 | ||||||
| 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 | (254,128 | ) | (180,461 | ) | ||||
| Inventory, net | (497,411 | ) | (1,503,632 | ) | ||||
| Prepaid expenses | 218,129 | (73,342 | ) | |||||
| Other current assets | - | 45,737 | ||||||
| Accounts payable | 419,485 | (256,248 | ) | |||||
| Deferred revenue | 1,050,144 | 1,028,780 | ||||||
| Accrued interest payable | - | (95,974 | ) | |||||
| Accrued and other current liabilities | (103,045 | ) | 1,823,760 | |||||
| Lease liability | (131,504 | ) | (93,865 | ) | ||||
| Net cash used in operating activities | (122,196 | ) | (449,119 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (78,238 | ) | (64,159 | ) | ||||
| Capitalized software, net | (1,066,064 | ) | (270,531 | ) | ||||
| Net cash used in investing activities | (1,144,302 | ) | (334,690 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from PIPE loans, net of discount | - | 2,520,000 | ||||||
| Repayments of notes payable | (2,595 | ) | (2,448 | ) | ||||
| Repayments of notes payable - related party | (18,500 | ) | - | |||||
| Repurchase of treasury stock | (345,000 | ) | - | |||||
| Net cash provided by (used in) financing activities | (366,095 | ) | 2,517,552 | |||||
| Net change in cash, cash equivalents and restricted cash | (1,632,593 | ) | 1,733,743 | |||||
| Cash, cash equivalents and restricted cash - beginning of period | 12,569,263 | 10,882,077 | ||||||
| Cash, cash equivalents and restricted cash - end of period | $ | 10,936,670 | $ | 12,615,820 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid for: | ||||||||
| Interest | $ | - | $ | 108,993 | ||||
| Income taxes | $ | - | $ | - | ||||
| Non-cash investing and financing activities: | ||||||||
| Series A Convertible Preferred Stock dividends converted to Class A Common Stock | $ | 2,043,300 | $ | - | ||||
| PIPE note principal converted to Class A Common Stock | $ | - | $ | 1,655,000 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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