Newton Golf Company Inc

Newton Golf Company Inc maintains a capital structure characterized by zero debt, with a debt-to-equity ratio of 0.0. The balance sheet shows total assets of $3.30 million against total liabilities of $2.37 million, resulting in total equity of $0.93 million. Liquidity is supported by cash and equivalents of $1.30 million, which exceeds total liabilities, providing a current buffer despite the low liquidity risk assessment. The market capitalization stands at $3.80 million, implying a price-to-book ratio of 4.11.

Profitability metrics indicate significant operational challenges, with a net income loss of $6.02 million on revenue of $8.14 million. The company reports a negative return on equity of -8.81% and a negative return on assets of -2.47%. Operating income is negative at -$7.55 million, driven by operating cash flow of -$5.17 million. The gross profit of $4.55 million suggests a gross margin of approximately 56%, but operating expenses significantly outpace this contribution.

Segment and geographic data are not provided in the available input, preventing a detailed analysis of revenue concentration or regional exposure. The company's activity is broadly classified as Leisure Products, but specific product mix or customer concentration details are absent from the current dataset.

Growth trajectory analysis is limited by the absence of historical period data in the input. The latest normalized period shows revenue of $8.14 million, but without prior year or quarterly comparisons, year-over-year growth rates cannot be calculated. The capital expenditure of $0.47 million indicates ongoing investment in assets, though the scale is modest relative to total assets.

Risk assessment flags low liquidity risk and low dilution risk, with no immediate filing-based liquidity or dilution flags detected. The shares outstanding remain constant at 4.59 million for both basic and diluted counts, indicating no current dilutive securities impacting the share count. The primary risk appears to be operational, given the significant net losses and negative cash flow.

Recent observations include a sector contamination re-analysis via the sector classification-direct path, audited on 2026-07-13, which corrected the company's classification. Analyst estimates suggest a mean price target of $4.75, with a high of $6.50 and a low of $3.00, reflecting a mean recommendation of 2.00 (Buy) based on one buy rating and no hold or strong buy ratings.

Newton Golf reported $8.1 million in revenue for fiscal year 2026, demonstrating significant top-line growth compared to prior periods.

The company maintained zero long-term debt in fiscal years 2025 and 2026, indicating a conservative capital structure with no interest obligations.

Gross profit expanded to $4.6 million in fiscal 2026, suggesting improved product pricing or favorable cost of goods sold dynamics.

Net income improved by 91.4% year-over-year in the latest available period, showing a trajectory toward reduced operational losses.

Liquidity and dilution risks are assessed as low, providing a stable foundation for continued operations without immediate capital pressure.

Newton Golf posted a net loss of $6.0 million in fiscal 2026, reflecting persistent unprofitability despite revenue growth.

The company generated negative free cash flow of $6.2 million in fiscal 2026, indicating ongoing cash burn from operations.

The current ratio of 0.94 suggests potential short-term liquidity constraints, as current liabilities exceed current assets.

Revenue $991.0k, −18,1% YoY; Operating income −32,7% YoY.

• ▍Revenue $991.0k, −18,1% YoY
• ▍Operating income −32,7% YoY
• ▍Net income −406,5% YoY
• ▍Free cash flow −345,2% YoY
• ▍Net margin -268.3%

Revenue $2.3M, +112,4% YoY; Operating income −79,3% YoY.

• ▍Revenue $2.3M, +112,4% YoY
• ▍Operating income −79,3% YoY
• ▍Net income +71,3% YoY
• ▍Free cash flow +71,2% YoY
• ▍Net margin -105.3%

Revenue $2.6M, +113,2% YoY; Operating income −38,0% YoY.

• ▍Revenue $2.6M, +113,2% YoY
• ▍Operating income −38,0% YoY
• ▍Net income −49,1% YoY
• ▍Free cash flow −24,4% YoY
• ▍Net margin -61.2%

Revenue $2.1M, +154,4% YoY; Operating income −25,4% YoY.

• ▍Revenue $2.1M, +154,4% YoY
• ▍Operating income −25,4% YoY
• ▍Net income −31,6% YoY
• ▍Free cash flow −31,1% YoY
• ▍Net margin -73.5%

Revenue $1.2M; Operating income -$2.0M.

• ▍Revenue $1.2M
• ▍Operating income -$2.0M
• ▍Net margin -43.4%

Revenue $1.1M; Operating income -$1.4M.

• ▍Revenue $1.1M
• ▍Operating income -$1.4M
• ▍Net margin -779.1%

Revenue $1.2M; Operating income -$1.1M.

• ▍Revenue $1.2M
• ▍Operating income -$1.1M
• ▍Net margin -87.5%

Revenue $813.0k; Operating income -$1.2M.

• ▍Revenue $813.0k
• ▍Operating income -$1.2M
• ▍Net margin -142.1%

Revenue $8.1M, +136,1% YoY; Operating income −51,6% YoY.

• ▍Revenue $8.1M, +136,1% YoY
• ▍Operating income −51,6% YoY
• ▍Net income +48,8% YoY
• ▍Free cash flow +48,9% YoY
• ▍Net margin -74.0%

Revenue $3.4M, +887,1% YoY; Operating income −7,5% YoY.

• ▍Revenue $3.4M, +887,1% YoY
• ▍Operating income −7,5% YoY
• ▍Net income −154,1% YoY
• ▍Free cash flow −147,6% YoY
• ▍Net margin -341.1%