Newton Golf Company, Inc.

Good afternoon, and welcome to Newton Golf Company's third quarter 2025 earnings conference call. Today's call will include prepared remarks from Greg Campbell, Chairman and CEO, and Jeff Claiborne, our Chief Financial Officer. Following their remarks, we'll open the call for a Q&A session. As a reminder, today's discussion may include forward-looking statements. Actual results may differ materially from those expressed or implied due to risks and uncertainties described in the company's filings with the SEC. With that, I'll now turn the call over to Greg Campbell. Greg?

Thank you, Colin, and good afternoon, everyone. Q3 marked a record quarter for Newton Golf, defined by continued growth, operational scale, and expanding brand recognition across the golf industry. We delivered 113% year-over-year revenue growth, reaching $2.5 million in net revenue, driven by robust product demand and continued market penetration. The company maintained a gross margin of 67%, reflecting effective pricing strategies, production efficiency, and the strength of its premium brand positioning. Year-to-date revenue has now reached $5.86 million, 147% increase over the same period last year. Our gross profit of roughly $4 million represents 166% improvement year-over-year, underscoring both product demand and disciplined cost control. We're seeing broad-braced strength across all channels. Tour adoption continues to accelerate with now more than 60 professionals gaming Newton shafts across the PGA Tour champions, LPGA, and Korn Ferry Tours. This validation from elite players continues to validate Newton's credibility and visibility, translating into increased consumer interest as well as the larger potential market of professional club fitter demand. The fast motion shaft, launched earlier this year, remains a breakout success, with cumulative unit sales increasing more than 300% quarter over quarter, quickly surpassing our early motion adoption curve. This rapid uptake demonstrates both strong market receptivity and our ability to scale manufacturing efficiently as demand grows. International expansion is progressing well with new distribution partnerships now active in Japan and discussions underway in South Korea and Europe. These channels are critical to establishing Newton as a global performance brand and diversifying revenue beyond the U.S. market. On the direct-to-consumer side, we continue to see repeat purchase strength through our Shopify store, supported by data-driven marketing and brand recognition. Our growing TTC base provides valuable consumer insights, higher margins and brand loyalty that supports sustainable long-term growth. The growing visibility of Newton shafts on tour and in retail has begun to establish us as a premium performance brand built on measurable science. Media response has been strong and we've seen rising engagement from professional club fitters and OEMs who recognize the measurable difference in performance and consistency. The Newton technology is rooted in science, the brand is growing in visibility, and sales tour pros are using our shafts. And why? Because Newton products work. On the operational front, we've made meaningful progress in scaling production capacity at our St. Joe, Missouri facility. Process refinements have improved throughput and quality control, positioning us well to meet anticipated demand into Q4 and 2026. Looking ahead, our focus remains clear. Deepened engagement with OEM partners as we work to integrate Newton shaft technology into major club manufacturers offerings. These relationships have the potential to expand our distribution reach, strengthen brand visibility and create recurring volume opportunities at scale. Continue expanding our professional club fitter and retail network to increase accessibility and hands-on testing opportunities for golfers at every level. Leverage our growing tour presence to drive consumer adoption and highlight the measurable performance advantage Newton shafts provide. Advance our 2026 innovation pipeline, including next generation Newton shaft technologies and additional product categories designed to broaden our portfolio and serve a wider range of golfers. We're proud of what the team has accomplished and confident that Newton's foundation is only getting stronger. Beyond our own results, the broader golf market remains incredibly healthy and supportive of Newton's game-improving golf products and its long-term growth strategy. Today, there are more than 47 million active golfers in the U.S. and over 64 million worldwide, figures that continue to grow each year. Participation among players over age 40 represents a large share of that base and remains the highest spending segment in golf equipment. Globally, the golf equipment market is valued at roughly $7 to $9 billion and is projected to grow at around a 5% annually through 2030. The U.S. alone accounts for nearly half of that spend, driven by strong replacement and upgrade cycles. In addition, the upcoming USGA and RNA golf ball rule changes which take effect for professionals in 2028 and recreational players in 2030, are expected to spark a new wave of equipment innovation and purchases. We view this as an opportunity for Newton to showcase its physics-based shaft technology, giving golfers measurable performance benefits that align with how the game itself is evolving. These trends reinforce that Newton is operating in a large expanding market with both demographic strength and industry catalysts supporting continued long-term growth. Taken together, our expanding product roadmap, growing engagement from retailers, professional club fitters, and OEMs, and supportive industry trends all point to a long runway for growth. We're confident in the foundation we've built and our ability to execute against these opportunities. With that, I'll hand it over to Jeff to walk through the financials in more detail. Jeff?

Thanks, Greg. Q3 represents another quarter of strong execution and continued momentum for Newton Golf. For the three months ended September 30th, 2025, we reported revenue of $2.6 million, a 113% increase from the $1.2 million in Q3 2024. We reported gross profit of $1.7 million, up 115% year over year, with gross margin steady at 67%. We reported operating expenses of 3.2 million compared to the 1.9 million in Q3, 2024, reflecting targeted investments in marketing, product development, and staffing to support scale. The quarter also included elevated professional service costs related to consulting and system integration work to modernize our back office environment, enhance data accuracy, and implement improved policies, procedures, and internal controls. These initiatives are designed to strengthen our control framework, improve operational efficiency, and provide a scalable foundation for future growth. We reported a net loss of $1.6 million, or a loss of $0.34 per share, compared to a loss of $1.1 million, or a loss of $21.79 per share in Q3 2024. When the nine months ended September 30th, 2025, we reported revenue of $5.9 million, up 147% year over year. Our gross profit reached $4 million, up 166% year over year, with a 68% gross margin. Net loss for the period was $3.6 million, or a loss of $1.07 per share, compared to $3.4 million, or a loss of $70.05 per share, for the same period last year. We ended the quarter with 2.6 million in cash and equivalents. In October, 2025, the company established an ATM equity offering program permitting the sale of up to 10 million of common stock pursuant to our effective shelf registration statement on Forum S3. The ATM provides a flexible and efficient mechanism to access capital as needed to support growth initiatives, strengthen liquidity, and enhance balance sheet flexibility. Importantly, even as we've scaled, we've maintained a strong gross margin profile and are beginning to see early operating leverage as production and sales volumes increase. Based on a strong year-to-date performance and order visibility into Q4, we are reaffirming full year 2025 revenue guidance in the range of $7 to $7.5 million. We believe Newton Etcher's 2026 was solid momentum, a deep product pipeline, and clear pathways for continued revenue growth and improved operating efficiency. With that, I'll turn back to Colin to begin the Q&A portion of today's call.