Newton Golf reported a wider second-quarter loss for fiscal 2026 on Tuesday, as the golf equipment maker struggled with soft demand and elevated costs, sending its shares lower in after-hours trading.
The company posted a net loss of $12.4 million for the three months ended June 30, compared with a $7.8 million loss in the same period a year earlier. Revenue declined 8% to $89.2 million, missing analyst estimates of $94.5 million, according to Refinitiv data.
Newton Golf attributed the loss expansion to weaker-than-anticipated sales across its core golf clubs and accessories segments, compounded by higher raw material and logistics expenses. Chief Executive Officer Mark Reynolds said in a statement that the company was navigating "challenging market conditions" driven by reduced discretionary spending among consumers.
Shares of Newton Golf fell 4.2% in extended trading after the results were released, extending a broader decline that has seen the stock drop 12% over the past month. The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also declined to $5.1 million from $8.9 million in the prior-year quarter.
Analysts at Piper Sandler trimmed their full-year revenue forecast for Newton Golf to $360 million from $380 million, citing persistent headwinds in retail demand. The company maintained its full-year guidance for adjusted EBITDA of $20 million to $25 million, though Reynolds acknowledged that achieving the midpoint would require "disciplined cost management and selective pricing adjustments."
Investors will be watching for updates on Newton Golf’s inventory levels and promotional strategies in the coming quarters as the company seeks to stabilize margins amid persistent macroeconomic pressures.
