Newton Golf Reports Massive 882% Q4 Revenue Surge, Record-Breaking 2024 Growth

Posted by author January 27, 2025 Golf

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NEWTON GOLF (NASDAQ: SPGC) has released preliminary financial results for Q4 and full year 2024, showing significant growth. Q4 2024 revenue is expected to reach $1.1-1.3 million, an 882% increase from Q4 2023’s $117,000. The company’s gross margin is projected to improve from 36% to 72-74% in Q4 2024.

Full-year 2024 revenue is anticipated to grow nearly 10-fold to $3.4-3.6 million, up from $349,000 in 2023, with gross margin expanding from 35% to 65-67%. Key 2024 achievements include launching Newton Fairway Motion shafts, introducing five new premium putter models, expanding into 50 major Japanese retail locations, and increasing PGA TOUR Champions professional usage from 5 to 34 players. The company also secured $9.1 million in financing for strategic growth.

Positive

Q4 2024 revenue growth of 882% year-over-year

Q4 2024 gross margin improvement to 72-74% from 36%

Full year 2024 revenue increase of nearly 10x to $3.4-3.6 million

Significant expansion in Japanese market with 50 retail locations

Growth in professional adoption from 5 to 34 PGA TOUR Champions players

Secured $9.1 million in growth financing

Insights

The preliminary results from NEWTON GOLF showcase a compelling growth trajectory with several noteworthy developments. The expected 882% YoY revenue growth in Q4 to $1.1-1.3M signals strong market acceptance of their products, particularly impressive during the traditionally slower winter season.

The dramatic gross margin expansion from 36% to 72-74% in Q4 deserves special attention. This level of margin improvement suggests excellent operational leverage and manufacturing optimization, placing NEWTON GOLF’s margins at the higher end of the sporting goods industry. The achievement of these margins at relatively low volumes indicates significant potential for further economies of scale.

Two key performance indicators stand out:

The increase from 5 to 34 PGA TOUR Champions professionals using Newton Motion shafts demonstrates rapid professional adoption, a important validator in the golf equipment market
The expansion into 50 premium Japanese retail locations provides strategic entry into one of golf’s most lucrative markets, where equipment commands premium pricing

The $9.1M in financing provides adequate runway for continued expansion, though the company will need to carefully manage cash burn as it scales. The successful digital marketing campaigns with high ROAS (Return on Ad Spend) suggest efficient customer acquisition, important for maintaining healthy unit economics in the direct-to-consumer channel.

The introduction of advanced performance shafts for higher swing speeds in early 2025 indicates R&D momentum and could open up new market segments. However, investors should monitor the sustainability of the current growth rate and margin levels as competition intensifies and the company scales beyond early adopters.

01/27/2025 – 08:15 AM

CAMARILLO, CA, Jan. 27, 2025 (GLOBE NEWSWIRE) — NEWTON GOLF Company (Nasdaq: SPGC) (“NEWTON GOLF” or the “Company”), a technology-forward golf company with a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, reports preliminary financial results for the fourth quarter of 2024 (three months ended December 31, 2024) and full year of 2024 ahead of its quarterly filing.

Financial Highlights

Revenue is expected to be between $1.1 million – $1.3 million in 4Q24, an increase of 882% at the midpoint of the range from revenue of $117,000 in 4Q23
Gross margin is expected to increase from 36% in 4Q23 to 72-74% in 4Q24, driven by increased sales and efficiencies in the manufacturing process in calendar 2024
Full year 2024 revenue is expected to increase from $349,000 in fiscal 2023 to $3.4 million – $3.6 million, representing almost 10-fold growth
Full year 2024 gross margin is expected to increase from 35% in fiscal 2023 to 65-67%, driven by increased volume in manufacturing in calendar 2024

2024 Corporate Highlights

Announced a complete rebranding of the Company to NEWTON GOLF Company
Launched the Newton Fairway Motion shafts
Launched the new Newton Gravity premium putter line through the introduction of five new putter models
Expanded the Company’s global presence with the launch of the Newton Motion shafts in 50 of Japan’s largest golf retail locations
Increased the number of golf professionals using the Newton Motion Shafts on the PGA TOUR Champions from less than five at the beginning of 2024 to 34 at the end of 2024
Executed successful digital campaigns with high return on ad spending that were instrumental in the Company’s revenue growth
Closed on $9.1 million in financings to support the Company’s strategic growth
Introduced new advanced performance shafts for higher swing speeds in January 2025

NEWTON GOLF Executive Chairman Greg Campbell commented, “Our expected improved results in 4Q24 and full year 2024 is reflective of the growing acceptance of our unique technology and design elements in our putters and replacement shafts. We recognized significantly increased sales of our NEWTON Motion replacement shafts throughout 2024 from both professional and recreational golfers, and we expect that momentum to continue in 2025. Despite it being generally off season for golf, we were pleased with our Black Friday and Cyber Monday sales, and we look forward to improved gross margin performance as we scale production and bring down unit cost.”

This press release contains preliminary estimated financial results for the quarter and fiscal year ended December 31, 2024, and the financial results may change as a result of management’s continued review. The preliminary financial information included in this press release reflects the Company’s current estimates based on information available as of the date of this press release and has been prepared by Company management. This preliminary financial and operational information should not be viewed as a substitute for full financial statements and is not necessarily indicative of the results to be achieved for any future periods. This preliminary financial and operational information could be impacted by the effects of financial closing procedures, final adjustments, and other developments.

About NEWTON GOLF: A Sacks Parente Company

NEWTON GOLF: A Sacks Parente Company, is a technology-forward golf company that help golfers elevate their game. With a growing portfolio of golf products, including putters, golf shafts, golf grips, and other golf-related accessories, the Company’s innovative accomplishments include: the First Vernier Acuity putter, patented Ultra-Low Balance Point (ULBP) putter technology, weight-forward Center-of-Gravity (CG) design, and pioneering ultra-light carbon fiber putter shafts.

In consideration of its growth opportunities in golf shaft technologies, the Company expanded its manufacturing business in April of 2022 to develop the advanced Newton brand of premium golf shafts by opening a new shaft manufacturing facility in St. Joseph, MO. It is the Company’s intent to manufacture and assemble substantially all products in the United States, while also expanding into golf apparel and other golf-related product lines to enhance its growth.

The Company’s future expansions may include broadening its offerings through mergers, acquisitions or internal developments of product lines that are complementary to its premium brand. The Company currently sells its products through resellers, the Company’s websites, Club Champion retail stores, and distributors in the United States, Japan, and South Korea.

For more information, please visit the Company’s website at www.newtongolfco.com or on social media at @newtongolfco.com, @newtonshafts, or @gravityputters.

Investor Contact for NEWTON GOLF
CORE IR
516-222-2560
investors@sacksparente.com

FAQ

What is NEWTON GOLF’s (SPGC) expected revenue for Q4 2024?

NEWTON GOLF expects Q4 2024 revenue to be between $1.1 million and $1.3 million, representing an 882% increase from Q4 2023.

How much did SPGC’s gross margin improve in Q4 2024?

SPGC’s gross margin is expected to increase from 36% in Q4 2023 to 72-74% in Q4 2024, driven by increased sales and manufacturing efficiencies.

What is NEWTON GOLF’s (SPGC) projected full-year revenue for 2024?

SPGC projects full-year 2024 revenue between $3.4-3.6 million, up from $349,000 in 2023, representing almost 10-fold growth.

How many PGA TOUR Champions professionals use NEWTON GOLF (SPGC) Motion Shafts?

By the end of 2024, 34 golf professionals on the PGA TOUR Champions were using Newton Motion Shafts, up from less than five at the beginning of the year.