TruGolf shares end up in the rough as FY25 loss widens

[Golfer Hand with Glove Placing Ball on Artificial Turf in Indoor Golf Simulator Training Facility]
Sergii Kolesnikov/iStock via Getty Images

Shares of TruGolf (TRUG [https://seekingalpha.com/symbol/TRUG]) dropped to another all-time low as the company’s latest quarterly results reflected continued operational challenges and a significant erosion in FY25 profits.

While the company noted a 7.1% increase in golf simulator hardware for the year and investments in new products to position the company for significant growth in the years ahead, it acknowledged the challenges it faced this year and noted that as a result of the “significant costs of maintaining a public company,” TruGolf (TRUG [https://seekingalpha.com/symbol/TRUG]) could be unable to continue as a going concern.

“If our revenues are insufficient or nonexistent, and/or we cannot satisfy many of these costs through the issuance of shares or debt, we may be unable to satisfy these costs in the normal course of business,” TruGolf said in a filing [https://seekingalpha.com/filing/255737559] with the U.S. Securities and Exchange Commission.

While this is a statement that has been repeated in prior filings with the SEC, its mention coupled with disappointing FY25 results appears to have spooked investors and sent shares spiraling lower at Thursday’s open.

While hardware sales were up in the fourth quarter, [https://ir.trugolf.com/press-releases/] net sales were down 17% year-over-year based on how the company books software licenses.

And with the cost of goods sold increasing $1.8M due to a non-cash one-time inventory adjustment, gross profit was down 72% to just $1.1M from the same quarter last year.

For the year, TruGolf (TRUG [https://seekingalpha.com/symbol/TRUG]) sales were down 11% to $18.9M, while gross profit fell 31.4% to $9.5M, contributing to a 1,480 basis point compression in gross margin. This reflected the impact of a non-recurring inventory reconciliation adjustment and the decline in higher-margin content software subscription revenue.

Accordingly, the company reported a net loss of $15.8M in 2025 versus a loss of $8.8M in 2024.

MORE ON TRUGOLF

* TruGolf redomesticates to Nevada from Delaware [https://seekingalpha.com/news/4563207-trugolf-redomesticates-to-nevada-from-delaware]
* TruGolf to enable real-money competition with D3 Sport Tech integration [https://seekingalpha.com/news/4547040-trugolf-to-enable-real-money-competition-with-d3-sport-tech-integration]
* Seeking Alpha’s Quant Rating on TruGolf [https://seekingalpha.com/symbol/TRUG/ratings/quant-ratings]
* Historical earnings data for TruGolf [https://seekingalpha.com/symbol/TRUG/earnings]
* Financial information for TruGolf [https://seekingalpha.com/symbol/TRUG/income-statement]