TruGolf Reports Second Quarter 2025 Financial Results Q2 2025 Sales Grow 11.3% Over Q2 2024

Rhea-AI Summary

TruGolf (NASDAQ: TRUG) reported mixed Q2 2025 financial results with revenue growth of 11.3% to $4.3 million compared to Q2 2024, while net losses widened to ($3.3) million from ($1.6) million year-over-year. The company's EPS improved to ($4.63) from ($6.80).

Key developments include successful regaining of Nasdaq compliance, launch of the new LaunchBox monitor product, and opening of the first TruGolf Links franchise in Chicago. Gross margin declined to 44.4% from 66.4% due to $0.9 million in inventory write-downs. Operating expenses increased 13% driven by higher marketing costs and professional fees related to Nasdaq compliance.

Positive

• Revenue grew 11.3% year-over-year to $4.3 million in Q2 2025
• EPS improved to ($4.63) from ($6.80) year-over-year
• Successfully regained Nasdaq listing compliance
• Launched new mass market product LaunchBox with promising initial sales
• Opened first TruGolf Links franchise with more locations planned

Negative

• Net losses increased to ($3.3) million from ($1.6) million year-over-year
• Gross margin declined significantly to 44.4% from 66.4% due to inventory write-downs
• Operating expenses increased 13% year-over-year
• Interest expense rose by $0.7 million in Q2 2025
• Operating losses widened to ($1.9) million from ($0.8) million

Insights

Financial Analyst

TruGolf reports 11.3% revenue growth but widening losses due to one-time charges; regains Nasdaq compliance while launching new products.

TruGolf Holdings delivered $4.3 million in Q2 2025 revenue, an 11.3% year-over-year increase, demonstrating continued market traction despite Q2 typically being their weakest seasonal period. However, the company's net loss expanded significantly to $3.3 million compared to $1.6 million in Q2 2024.

The expanded loss stems from several factors worth unpacking. A substantial $900,000 inventory write-down and TruTrack product costs severely impacted gross margin, which fell to 44.4% from 66.4% a year ago. When excluding these one-time charges, management indicates operational profitability remained consistent with historical patterns. Additionally, $600,000 in professional fees related to regaining Nasdaq compliance and higher interest expenses from convertible note amortization further pressured the bottom line.

TruGolf's balance sheet shows improvement with stockholders' equity swinging from a $4.64 million deficit at year-end to a positive $4.31 million as of June 30, largely through debt conversions. Cash position remains relatively stable at $10.16 million (including restricted cash), providing reasonable operational runway.

Two significant developments merit investor attention: the July launch of their mass-market LaunchBox monitor and the opening of their first franchise location (TruGolf Links) in Chicago, with a larger flagship location planned for Q4. These initiatives represent meaningful revenue diversification opportunities beyond their core simulator business.

The company's successful efforts to regain Nasdaq compliance removes a significant regulatory overhang. Combined with new product launches and franchise expansion, TruGolf has positioned itself for potential operational improvements in the second half of 2025, though investors should monitor whether gross margins truly recover to historical levels in Q3 as management projects.

Salt Lake City, Utah, Aug. 20, 2025 (GLOBE NEWSWIRE) -- TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, announced today its second quarter 2025 results. The Company reported sales of $4.3 million, up 11.3% compared to 2024 second quarter sales of $3.9 million. Net losses increased to ($3.3) million for 2025’s second quarter, versus a net loss of ($1.6) million in the 2024 period, driven most notably by professional fees and the recognition of interest expense. EPS for 2025’s second quarter improved to ($4.63), as compared to 2024’s ($6.80) loss per share. 

Chief Executive Officer and Director Chris Jones said, “Seasonally, the second quarter is typically our toughest period, but the company still managed to achieve significant year-on-year revenue growth. However, the big story of Q2 was our efforts to regain compliance with Nasdaq’s listing standards, a process we successfully concluded in July. With our debt load now significantly reduced, we are optimistic about achieving substantial operational improvements in the latter half of the year, especially as the current upward trend in sales continues."

Mr. Jones continued, “During the quarter we took several non-cash charges related to inventory adjustments and costs associated with our TruTrack product. Absent these write-downs, operationally profitability was in line with prior periods. We expect reported margins to return to traditional levels in Q3. In July we commenced US sales of our Launchbox monitor and we are very excited about the prospects for this mass market product. The initial results for the first month of LaunchBox sales are promising. I am also happy to report on the successful grand opening of our first TruGolf Links franchise in the Chicago area on July 29th. We expect a larger flagship franchise location to open in the fourth quarter of this year and more to follow in 2026.”

Operations:

Gross margin for 2025’s second quarter was 44.4% as compared to 66.4% in 2024’s quarter as performance was hurt by the $0.9 million of write-downs associated with inventory adjustments and the TruTrack product. For the first half of 2025, sales grew 9% to $9.7 million from $8.9 million. Gross margin was 57.5% as compared to 63.3% in the first half of 2024. 2025’s second quarter loss from operations was higher at ($1.9) million as compared to ($0.8) million in the 2024 period, driven largely by higher cost of goods sold in the second quarter due to the previously mentioned inventory write-down. Year-to-date 2025’s losses from operations were $3.1 million, 80% higher than in 2024’s first half loss of ($1.7) million with increased operating expenses driven primarily by higher professional expenses associated with regaining Nasdaq compliance of $600,000, higher spending on marketing of $336,000 and capitalized software of $296,000. 2025 second quarter operating expenses increased by 13% or $0.4 million, driven by higher SG&A costs arising from increased marketing costs of $114,000, higher professional fees of $377,000 associated with regaining Nasdaq compliance and an increase in amortization expense related to capitalized software of $130,000. This was offset by a decrease in salaries, wages and benefits of $111,000, or 10%, due primarily to an increase in salaries being capitalized for time spent on developing new versions of the Company’s platform software.

Interest expense in the second quarter of 2025 rose by $0.7 million and for the first half of 2025, interest expense increased by $1.8 million with the increases resulting from amortization expense of the PIPE Convertible Notes debt discount, the write-off of remaining debt discounts upon the conversion of related to the PIPE Convertible Notes, and the make-good interest expense upon the conversion of related PIPE Convertible Notes. 

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 timing of new franchise openings during 2025. 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.

Contact:	Michael Bacal
	mbacal@darrowir.com
	917-886-9071

TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

		June 30,				December 31,
		2025				2024
		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	8,059,359			$	8,782,077
Restricted cash			2,100,000				2,100,000
Accounts receivable, net			2,185,888				1,399,153
Inventory, net			2,698,310				2,349,345
Prepaid expenses and other current assets			290,389				116,619
PIPE exchange consideration			5,651,310				-
Other current assets			-				45,737
Total Current Assets			20,985,256				14,792,931
Property and equipment, net			210,463				143,852
Capitalized software development costs, net			2,674,845				1,540,121
Right-of-use assets			455,925				634,269
Other long-term assets			31,023				31,023
Total Assets		$	24,357,512			$	17,142,196
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities:
Accounts payable		$	3,209,831			$	2,819,703
Deferred revenue			5,009,228				3,113,010
PIPE loan payable, net			3,734,990				-
Notes payable, current portion			10,573				10,001
Notes payable to related parties, current portion			2,668,500				2,937,000
Line of credit, bank			802,738				802,738
Dividend notes payable			118,362				4,023,923
Accrued interest			564,947				661,376
Accrued and other current liabilities			1,772,877				999,307
Accrued and other current liabilities - assumed in Merger			45,008				45,008
Lease liability, current portion			228,536				363,102
Total Current Liabilities			18,165,590				15,775,168
Non-current Liabilities:
Notes payable, net of current portion			4,232				9,732
Note payables to related parties, net of current portion			624,000				624,000
PIPE loan payable, net			-				4,068,953
Gross sales royalty payable			1,000,000				1,000,000
Lease liability, net of current portion			250,002				305,125
Total Liabilities			20,043,824				21,782,978
Commitments and Contingencies			-				-
Stockholders’ Equity (Deficit):
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; 1,885 and 0 shares issued and outstanding, respectively			-				-
Common stock, $0.0001 par value, 100,000,000 shares authorized:			-				-
Common stock - Series A, $0.0001 par value, 90 million shares authorized; 810,617 and 522,411 shares issued and outstanding, respectively			80				52
Common stock - Series B, $0.0001 par value, 10 million shares authorized; 200,000 and 34,337 shares issued and outstanding, respectively			20				3
Treasury stock at cost, 4,692 shares of common stock held, respectively			(2,037,000	)			(2,037,000	)
Additional paid-in capital			33,497,876				18,551,660
Accumulated deficit			(27,147,288	)			(21,155,496	)
Total Stockholders’ Equity (Deficit)			4,313,688				(4,640,781	)
Total Liabilities and Stockholders’ Equity (Deficit)		$	24,357,512			$	17,142,196

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Revenue, net		$	4,310,864			$	3,873,163			$	9,700,094			$	8,885,185
Cost of revenue			2,398,959				1,300,212				4,125,158				3,259,234
Total gross profit			1,911,905				2,572,951				5,574,936				5,625,951
Operating expenses:
Royalties			138,695				223,150				364,015				553,038
Salaries, wages and benefits			1,006,210				1,117,287				2,953,026				2,958,881
Selling, general and administrative			2,637,026				2,017,556				5,362,145				3,842,758
Total operating expenses			3,781,931				3,357,993				8,679,186				7,354,677
Loss from operations			(1,870,026	)			(785,042	)			(3,104,250	)			(1,728,726	)
Other income (expense):
Interest income			64,830				36,621				119,426				67,208
Interest expense			(1,516,874	)			(820,908	)			(3,007,568	)			(1,205,762	)
Loss on investment			-				-				-				(3,912	)
Other income			600				-				600				-
Total other income (expense), net			(1,451,444	)			(784,287	)			(2,887,542	)			(1,142,466	)
Net loss prior to provision for income taxes		$	(3,321,470	)			(1,569,329	)			(5,991,792	)			(2,871,192	)
Provision for income taxes			-				-				-				-
Net loss		$	(3,321,470	)		$	(1,569,329	)		$	(5,991,792	)		$	(2,871,192	)
Net loss per common share Series A – basic and diluted		$	(4.63	)		$	(6.80	)		$	(9.31	)		$	(11.53	)
Net loss per common share Series B – basic and diluted		$	(19.69	)		$	(45.70	)		$	(59.02	)		$	(83.62	)
Weighted average shares outstanding Series A – basic and diluted			717,928				230,765				643,657				248,980
Weighted average shares outstanding Series B – basic and diluted			168,708				34,337				101,523				34,337

The accompanying footnotes 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
		Six Months Ended				Six Months Ended
		June 30, 2025				June 30, 2024
Cash flows from operating activities:
Net loss		$	(5,991,792	)		$	(2,871,192	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			413,409				173,200
Amortization of convertible notes discount			359,037				24,197
Amortization of right-of-use asset			178,344				166,311
Bad debt expense			74,818				-
Change in OCI			-				1,662
Stock issued for make good provisions on debt conversion			2,169,707				-
Stock options issued to employees			6,682				-
Changes in operating assets and liabilities:
Accounts receivable, net			(861,552	)			(231,385	)
Inventory, net			(348,965	)			(216,701	)
Prepaid expenses			(173,770	)			143,471
Other current assets			45,737				2,478,953
Accounts payable			390,129				1,149,909
Deferred revenue			1,896,218				1,274,900
Accrued interest payable			(96,429	)			785,306
Accrued and other current liabilities			773,570				(99,165	)
Other liabilities			-				(1,153	)
Lease liability			(189,689	)			(162,338	)
Net cash provided by (used in) operating activities			(1,354,546	)			2,615,975
Cash flows from investing activities:
Purchases of property and equipment			(45,966	)			-
Capitalized software, net			(1,568,778	)			(1,433,438	)
Reduction in long term assets			-				(75	)
Net cash used in investing activities			(1,614,744	)			(1,433,513	)
Cash flows from financing activities:
Proceeds from PIPE loans, net of discount			2,520,000				4,185,000
Cash acquired in Merger			-				103,818
Costs of Merger paid from PIPE loan			-				(1,947,787	)
Repayments of line of credit			-				(1,980,937	)
Repayments of liabilities assumed in Merger			-				(15,716	)
Repayments of notes payable			(4,928	)			(4,632	)
Repayments of notes payable - related party			(268,500	)			(268,500	)
Net cash provided by financing activities			2,246,572				71,246
Net change in cash , cash equivalents and restricted cash			(722,718	)			1,253,708
Cash, cash equivalents and restricted cash - beginning of year			10,882,077				5,397,564
Cash, cash equivalents and restricted cash - end of year		$	10,159,359			$	6,651,272
Supplemental cash flow information:
Cash paid for:
Interest		$	108,993			$	302,095
Income taxes		$	-			$	-
Non-cash investing and financing activities:
PIPE note principal converted to Class A Common Stock		$	3,213,000			$	-
Dividend note principal converted to Class A and Class B Common Stock		$	3,905,561			$	-
Exchange of PIPE Notes and Series A and B Warrants for Series A Convertible Preferred Stock and Warrants for Series A Convertible Preferred Stock		$	5,651,310			$	-
Notes payable assumed in Merger		$	-			$	1,565,000
Accrued liabilities assumed in Merger		$	-			$	310,724
Remeasurement of common stock exchanged/issued in Merger		$	-			$	(1,875,724	)

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

FAQ

What were TruGolf's (TRUG) Q2 2025 earnings results?

TruGolf reported Q2 2025 revenue of $4.3 million, up 11.3% year-over-year, with a net loss of ($3.3) million and EPS of ($4.63).

Why did TruGolf's gross margin decline in Q2 2025?

Gross margin declined to 44.4% from 66.4% due to $0.9 million in write-downs associated with inventory adjustments and the TruTrack product.

What new products did TruGolf launch in 2025?

TruGolf launched its new LaunchBox monitor in July 2025, targeting the mass market segment with promising initial sales results.

How is TruGolf expanding its franchise business?

TruGolf opened its first TruGolf Links franchise in Chicago on July 29th, with plans for a larger flagship location in Q4 2025 and additional locations in 2026.

Has TruGolf regained Nasdaq compliance?

Yes, TruGolf successfully completed the process of regaining compliance with Nasdaq's listing standards in July 2025.