TruGolf Reports Third Quarter 2025 Results: Strong Margins, Strengthened Balance Sheet, and Expanding Contract Revenue Supports Long-Term Growth Strategy
Salt Lake City, Utah, Nov. 17, 2025 (GLOBE NEWSWIRE) — TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, today reported its third quarter 2025 results.
Third Quarter 2025 vs. Third Quarter 2024:
Financial Highlights
- Cash: $11.4 million unrestricted; $13.5 million including restricted cash, up 30% from December 31, 2024.
- Total liabilities decreased to $16.7 million from $21.8 million at year-end, following the exchange of certain convertible notes into equity and settlement of merger-related obligations.
- Gross Margin: 69%, up sequentially from second quarter 2025.
- Remaining contract performance obligations of approximately $6.2 million. The Company has a consistent history of recognizinġ deferred revenue and fulfilling customer deposits on a rolling 3 month basis.
- Stockholders’ Equity: Positive $6.26 million (vs. $(4.6) million deficit at year-end 2024).
- Net Loss: $(7.3) million for the third quarter, primarily due to a non-cash $6.1 million loss on extinguishment of debt.
- Revenue: $4.1 million for the quarter vs. $6.2 million in 2024, primarily reflecting timing of product deliveries and deferred recognition related to software and franchise contracts.
Operational Highlights
- Continued investment in product development, including E6 APEX, LaunchBox, and the upcoming TruGolf Range platform set to debut at the 2026 PGA Show.
- Advancements in AI-driven analytics and commentary, powered by IBM watsonx.ai, which the Company believes will become a key differentiator in TruGolf’s software ecosystem.
- Franchise and multi-bay facility model under construction, with the first “Golf Everywhere” installation in Flower Mound, TX, representing the blueprint for national rollout.
“Q3 marked a pivotal quarter for TruGolf as we completed the restructuring of our balance sheet, regained full NASDAQ compliance, and positioned the company for growth in 2026.” Said Chris Jones, CEO and Director of TruGolf. “Today TruGolf’s underlying fundamentals are stronger than they have been since going public, we are now operating with a capital structure free of short-term debt pressure, strong liquidity and a positive equity base. We expect to maintain sufficient cash to fund operations for at least 12 months and anticipate renewed growth momentum in 2026 as new product lines begin contributing revenue. We believe our share price does not yet reflect the progress achieved or the opportunity ahead, and we remain confident that operational execution and strategic visibility in 2026 will unlock meaningful shareholder value.”
In the quarter, the Company experienced significant professional fees ($0.4 million) in connection with regaining compliance with Nasdaq listing requirements. At the same time, it recognized large development costs ($0.2 million) and increased contract labor costs ($0.3 million) associated with refreshing its product and software offerings. Additionally, top line sales were reduced in the quarter by ($2.1 million) as compared to 2024’s quarter primarily due to a change in our policy for recognition of sales of product licenses. This change has also led to an increase in deferred revenue.
Gross margin for 2025’s third quarter was 69.3% as compared to 69.1% in 2024’s quarter and a major improvement from 2025’s second quarter of 44.4% as performance returned to historic levels. 2025’s third quarter loss from operations was higher at ($1.1) million as compared to profits of $0.9 million in the 2024 period, driven largely by SG&A costs in the third quarter due to the previously mentioned higher professional fees in connection with regaining NASDAQ compliance, higher costs of contract labor used in connection with product upgrades and increased amortization of capitalized software. Somewhat offsetting these higher operating expenses was a $1.1 million decrease in salaries, wages and benefits due primarily to an increase in salaries being capitalized for time spent on developing new versions of the Company’s platform software.
Net losses increased to ($7.3) million for 2025’s third quarter, versus a net loss of ($0.06) million in the 2024 period, driven most notably by the losses from extinguishment of $6.1 million in debt in the quarter and the associated recognition of interest expenses associated with the exchange of convertible notes for Series A Preferred shares and warrants in the period as well as $0.4 million in professional fees and related expenses associated with regaining compliance with Nasdaq listing standards.
Interest expense in the third quarter of 2025 declined by $0.8 million due to exchange of outstanding convertible notes. The convertible note exchange in the third quarter resulted in the previously mentioned ($6.1) million loss on extinguishment of debt. The Company’s liabilities declined by $3.3 million in the quarter to $16.7 million.
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 ability of the Company to fund its operations for 12 months and the success of the rollout of its new products. 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 |
| [email protected] | |
| 917-886-9071 |
TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
| September 30, | December 31, | |||||||
| 2025 | 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 11,435,121 | $ | 8,782,077 | ||||
| Restricted cash | 2,100,000 | 2,100,000 | ||||||
| Accounts receivable, net | 2,246,756 | 1,399,153 | ||||||
| Inventory, net | 2,675,839 | 2,349,345 | ||||||
| Prepaid expenses and other current assets | 701,123 | 116,619 | ||||||
| Other current assets | – | 45,737 | ||||||
| Total Current Assets | 19,158,839 | 14,792,931 | ||||||
| Property and equipment, net | 246,349 | 143,852 | ||||||
| Capitalized software development costs, net | 3,183,751 | 1,540,121 | ||||||
| Right-of-use assets | 364,253 | 634,269 | ||||||
| Other long-term assets | 31,023 | 31,023 | ||||||
| Total Assets | $ | 22,984,215 | $ | 17,142,196 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,813,124 | $ | 2,819,702 | ||||
| Deferred revenue | 6,186,620 | 3,113,010 | ||||||
| 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 | 600,233 | 661,376 | ||||||
| Accrued and other current liabilities | 1,594,330 | 999,307 | ||||||
| Accrued and other current liabilities – assumed in Merger | 45,008 | 45,008 | ||||||
| Lease liability, current portion | 159,834 | 363,102 | ||||||
| Total Current Liabilities | 14,999,322 | 15,775,167 | ||||||
| Non-current Liabilities: | ||||||||
| Notes payable, net of current portion | 1,716 | 9,732 | ||||||
| Note payables to related parties, net of current portion | 505,500 | 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 | 220,551 | 305,125 | ||||||
| Total Liabilities | 16,727,089 | 21,782,977 | ||||||
| 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; 8,189 and 0 shares issued and outstanding, respectively. Liquidation preference of $3,140,519 as of September 30, 2025. | 1 | – | ||||||
| Common stock, $0.0001 par value, 660,000,000 shares authorized: | ||||||||
| Common stock – Series A, $0.0001 par value, 650 million shares authorized;1,894,519 and 522,411 shares issued and outstanding, respectively | 189 | 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, 94 shares of common stock held, respectively | (2,037,000 | ) | (2,037,000 | ) | ||||
| Additional paid-in capital | 45,111,416 | 18,551,660 | ||||||
| Accumulated deficit | (36,817,500 | ) | (21,155,496 | ) | ||||
| Total Stockholders’ Equity (Deficit) | 6,257,126 | (4,640,781 | ) | |||||
| Total Liabilities and Stockholders’ Equity (Deficit) | $ | 22,984,215 | $ | 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)
| For the | For the | For the | For the | |||||||||||||
| Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | |||||||||||||
| September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |||||||||||||
| Revenue, net | $ | 4,105,965 | $ | 6,236,795 | $ | 13,806,059 | $ | 15,121,980 | ||||||||
| Cost of revenue | 1,258,628 | 1,924,093 | 5,383,786 | 5,183,328 | ||||||||||||
| Total gross profit | 2,847,337 | 4,312,702 | 8,422,273 | 9,938,652 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Royalties | 56,465 | 166,631 | 420,480 | 719,668 | ||||||||||||
| Salaries, wages and benefits | 564,624 | 1,695,678 | 3,517,650 | 4,654,560 | ||||||||||||
| Selling, general and administrative | 3,339,742 | 1,578,112 | 8,701,887 | 5,420,872 | ||||||||||||
| Total operating expenses | 3,960,831 | 3,440,421 | 12,640,017 | 10,795,100 | ||||||||||||
| Loss from operations | (1,113,494 | ) | 872,281 | (4,217,744 | ) | (856,448 | ) | |||||||||
| Other (expenses) income: | ||||||||||||||||
| Interest income | 78,725 | 38,592 | 198,151 | 105,800 | ||||||||||||
| Interest expense | (108,315 | ) | (971,048 | ) | (3,115,883 | ) | (2,176,810 | ) | ||||||||
| Loss on extinguishment of debt | (6,135,160 | ) | – | (6,135,160 | ) | – | ||||||||||
| Loss on investment | – | – | – | (3,912 | ) | |||||||||||
| Other income | – | – | 600 | – | ||||||||||||
| Total other expense | (6,164,750 | ) | (932,456 | ) | (9,052,292 | ) | (2,074,922 | ) | ||||||||
| Loss from operations before provision for income taxes | (7,278,244 | ) | (60,175 | ) | (13,270,036 | ) | (2,931,370 | ) | ||||||||
| Provision for income taxes | – | – | – | – | ||||||||||||
| Net loss | $ | (7,278,244 | ) | $ | (60,175 | ) | $ | (13,270,036 | ) | $ | (2,931,370 | ) | ||||
| Net loss per common share Series A – basic and diluted | $ | (4.87 | ) | $ | (0.00 | ) | $ | (13.36 | ) | $ | (0.28 | ) | ||||
| Weighted average shares outstanding – basic and diluted | 1,495,411 | 13,380,737 | 993,182 | 10,550,277 | ||||||||||||
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 | |||||||
| Nine Months Ended | Nine Months Ended | |||||||
| September 30, 2025 | September 30, 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (13,270,036 | ) | $ | (2,931,370 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 747,473 | 331,728 | ||||||
| Amortization of convertible notes discount | 359,037 | 47,447 | ||||||
| Amortization of right-of-use asset | 270,016 | 251,612 | ||||||
| Bad debt expense | 74,818 | – | ||||||
| Change in OCI | – | 1,662 | ||||||
| Loss on extinguishment of debt | 6,135,160 | – | ||||||
| Stock issued for make good provisions on debt conversion | 2,169,707 | – | ||||||
| Stock options issued to employees | 10,025 | – | ||||||
| Stock issued for interest | – | 341,696 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (922,416 | ) | (2,143,225 | ) | ||||
| Inventory, net | (326,494 | ) | (205,146 | ) | ||||
| Prepaid expenses | (584,504 | ) | 163,101 | |||||
| Other current assets | 45,737 | 2,478,953 | ||||||
| Accounts payable | (6,579 | ) | 228,437 | |||||
| Deferred revenue | 3,073,610 | 3,470,881 | ||||||
| Accrued interest payable | (61,143 | ) | 1,208,014 | |||||
| Accrued and other current liabilities | 595,020 | 75,576 | ||||||
| Other liabilities | – | (1,148 | ) | |||||
| Lease liability | (287,842 | ) | (246,437 | ) | ||||
| Net cash provided by (used in) operating activities | (1,978,411 | ) | 3,071,781 | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (98,004 | ) | – | |||||
| Capitalized software, net | (2,395,596 | ) | (1,967,418 | ) | ||||
| Reduction in long term assets | – | (115 | ) | |||||
| Net cash used in investing activities | (2,493,600 | ) | (1,967,533 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from PIPE loans, net of discount | 2,520,000 | 4,185,000 | ||||||
| Proceeds from exercise of Series A Preferred warrants | 4,999,500 | – | ||||||
| Proceeds from notes payable – related party | – | 1,000,000 | ||||||
| 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 | (7,445 | ) | (7,005 | ) | ||||
| Repayments of notes payable – related party | (387,000 | ) | (287,000 | ) | ||||
| Repayment of notes payable assumed in Merger | – | (100,000 | ) | |||||
| Net cash provided by financing activities | 7,125,055 | 950,373 | ||||||
| Net change in cash , cash equivalents and restricted cash | 2,653,044 | 2,054,621 | ||||||
| Cash, cash equivalents and restricted cash – beginning of year | 10,882,077 | 5,397,564 | ||||||
| Cash, cash equivalents and restricted cash – end of year | $ | 13,535,121 | $ | 7,452,185 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid for: | ||||||||
| Interest | $ | 108,993 | $ | 548,041 | ||||
| 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 | $ | – | ||||
| Series A Convertible Preferred Stock issued in exchange of PIPE Notes | $ | 4,558,841 | $ | – | ||||
| Series A Convertible Preferred Stock dividends converted to Class A Common Stock | $ | 2,391,968 | $ | – | ||||
| 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.
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