TruGolf Reports 4.2% Revenue Decline and Net Loss of $1.4M in Q1 2026

TruGolf Holdings, Inc. reported a net revenue of $5,020,262 for the first quarter of 2026, a decrease of 4.2% from $5,237,825 in the same period of 2025. The decline was primarily driven by a reduction in golf simulator sales, which fell by $228,321 to $3,664,866. The company's cost of revenue increased significantly by 29.8%, amounting to $2,337,266, which contributed to a gross profit of $2,682,996, down from $3,437,711 a year earlier. The net loss for the quarter was $1,447,294, an improvement from the loss of $2,670,322 reported in the prior year.

In terms of operational changes, TruGolf has made strategic moves including the formation of a new subsidiary, TruGolf Links Franchising, LLC, aimed at expanding its franchise operations. Additionally, the company underwent a redomestication from Delaware to Nevada and executed a 1-for-10 reverse stock split on March 27, 2026. These changes are part of a broader strategy to enhance corporate governance and streamline operations.

The company’s total operating expenses decreased by 14.9% to $3,977,575, largely due to a significant reduction in salaries, wages, and benefits, which fell by 59.2% to $793,411. This reduction reflects a shift in employee compensation, with more costs being capitalized as software development expenses. However, selling, general, and administrative expenses rose by 16.8% to $3,184,164, driven by increased amortization expenses related to capitalized software costs and higher professional fees associated with franchising efforts.

As of March 31, 2026, TruGolf reported cash and cash equivalents of $10,936,670, down from $12,569,263 at the end of 2025. The company is facing a working capital deficit of $1,282,452, compared to a surplus of $1,076,496 previously. The decrease in cash is attributed to increased accounts receivable and inventory levels, despite a rise in accounts payable and deferred revenue. Looking ahead, TruGolf anticipates continued operating losses as it invests in development and strategic initiatives, with plans to fund these losses through equity sales and convertible notes. The company remains focused on enhancing its product offerings and expanding its market presence.