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.
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.
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