TruGolf Reports First Quarter 2026 Results
Rhea-AI Summary
TruGolf (NASDAQ:TRUG) reported Q1 2026 revenue of $5.0 million versus $5.2 million in Q1 2025, reflecting lower simulator sales and modestly higher software contracts. Net loss narrowed to about $1.4 million from $2.7 million, while operating expenses fell 14.9% and operating cash outflow improved to $0.1 million.
Gross margin declined to 53.0% from 68.0% as cost of revenue increased. Interest expense dropped sharply following prior debt restructuring. The company ended Q1 2026 with $10.9 million in cash and announced new leadership hires and progress on TruGolf Links flagship and franchise locations.
AI-generated analysis. Not financial advice.
Positive
- Net loss reduced to $1.45 million from $2.67 million year-over-year
- Interest expense fell to $0.21 million from $1.49 million year-over-year
- Total operating expenses decreased 14.9% versus Q1 2025
- Net cash used in operating activities improved to $0.12 million from $0.45 million
- Salaries, wages and benefits declined to $0.79 million from $1.95 million
- Deferred revenue increased to $6.61 million from $5.56 million quarter-on-quarter
Negative
- Revenue declined to $5.02 million from $5.24 million year-over-year
- Gross margin fell to 53.0% from 68.0% year-over-year
- Cost of revenue rose to $2.34 million from $1.80 million
- Loss from operations widened slightly to $1.29 million from $1.23 million
- Net cash used in investing activities increased to $1.14 million from $0.33 million
- Total stockholders’ equity decreased to $2.51 million from $4.30 million since year-end 2025
Key Figures
Market Reality Check
Peers on Argus
Scanner data flagged two peers (e.g., GDC, SNAL) moving down while the target was tagged as moving up, and broader peers show mixed moves (from ‑42.79% to modest gains). This pattern points to company‑specific trading rather than a coordinated sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 16 | Q4 2025 earnings | Positive | -16.6% | Improved quarterly and full‑year loss metrics despite lower revenue versus 2024. |
| Nov 17 | Q3 2025 earnings | Positive | +10.2% | Strengthened equity and cash with high gross margin despite lower revenue and large loss. |
| Aug 20 | Q2 2025 earnings | Neutral | -2.6% | Revenue growth offset by wider losses and margin compression from inventory write‑downs. |
| May 15 | Q1 2025 earnings | Neutral | +12.8% | Top‑line and margin gains but higher operating costs and interest‑driven loss expansion. |
| Apr 21 | 2024 results | Neutral | +35.7% | Record sales and better margins with ongoing losses and Nasdaq listing risk disclosed. |
Earnings releases have often driven sizable moves, with largely mixed fundamentals but generally negative reactions when losses and top‑line trends disappoint.
Over the last year, TruGolf’s earnings reports have shown a mix of revenue volatility and ongoing losses alongside balance‑sheet repair. Full‑year 2024 results highlighted record $21.9M sales and narrower losses, while 2025 quarters saw shifting margins, non‑cash charges, and debt restructurings. Q4 2025 results improved net loss versus 2024 but reflected lower sales. Against this backdrop, Q1 2026 continues the theme of modest revenue pressure, lower gross margin, but smaller net losses and tighter operating costs.
Historical Comparison
Past earnings releases moved the stock an average of 7.9%, often on mixed revenue and loss trends, so another earnings‑driven swing would fit recent behavior.
Earnings reports since 2024 show TruGolf balancing growth initiatives with persistent losses. 2024 delivered record revenue and better margins. Through 2025, quarterly updates highlighted shifting gross margins, non‑cash charges, and leverage reduction while maintaining adequate cash. Q4 2025 results improved net loss versus 2024, and Q1 2026 continues this trajectory with slightly lower sales but reduced operating expenses and interest costs, reflecting an ongoing focus on efficiency and capitalization of software development.
Regulatory & Risk Context
An effective Form S‑3 universal shelf filed on 2025‑11‑17 enables TruGolf to issue up to $200,000,000 of various securities over time. The filing is effective with 0 recorded takedowns so far, and sales are constrained by one‑third‑of‑float limits for smaller issuers, but it still represents significant potential future equity or debt issuance capacity.
Market Pulse Summary
This announcement highlights modest year‑on‑year revenue decline to about $5.0M, but a meaningfully smaller net loss and lower operating expenses, supported by capitalized software development and lower interest costs. Gross margin fell to 53.0%, and cash plus restricted cash totaled roughly $10.9M. Historically, TruGolf’s earnings have produced sizable moves, so investors may watch future quarters for revenue reacceleration, margin stabilization, cash trends, and any use of its effective shelf registration.
Key Terms
selling, general and administrative financial
capitalized software development costs financial
right-of-use assets financial
series a convertible preferred stock financial
AI-generated analysis. Not financial advice.
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:
• Net Loss:
• Total operating expenses declined by
• Net cash used by operations in Q1 2026 declined to
“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
Salaries in Q1 2026 declined
Interest expense in Q1 2026 declined by
In the first quarter of 2026 the Company repurchased 439,208 shares for
Operations:
Cost of revenues in the quarter increased
The 2026 first quarter loss from operations increased
Net Loss decreased to
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, | ||||||||
| Series A Convertible Preferred Stock, | - | 1 | ||||||
| Common stock, | ||||||||
| Common stock - Series A, | 63 | 41 | ||||||
| Common stock - Series B, | 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.
