(MENAFN- GlobeNewsWire - Nasdaq) Salt Lake City, Utah, Nov. 17, 2025 (GLOBE NEWSWIRE) -- TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, today reported its third quarter 2025 results.

Third Quarter 2025 vs. Third Quarter 2024:

Financial Highlights

• Cash: $11.4 million unrestricted; $13.5 million including restricted cash, up 30% from December 31, 2024.
• Total liabilities decreased to $16.7 million from $21.8 million at year-end, following the exchange of certain convertible notes into equity and settlement of merger-related obligations.
• Gross Margin: 69%, up sequentially from second quarter 2025.
• Remaining contract performance obligations of approximately $6.2 million. The Company has a consistent history of recognizinġ deferred revenue and fulfilling customer deposits on a rolling 3 month basis.
• Stockholders' Equity: Positive $6.26 million (vs. $(4.6) million deficit at year-end 2024).
• Net Loss: $(7.3) million for the third quarter, primarily due to a non-cash $6.1 million loss on extinguishment of debt.
• Revenue: $4.1 million for the quarter vs. $6.2 million in 2024, primarily reflecting timing of product deliveries and deferred recognition related to software and franchise contracts.
  

Operational Highlights

• Continued investment in product development, including E6 APEX, LaunchBox, and the upcoming TruGolf Range platform set to debut at the 2026 PGA Show.
• Advancements in AI-driven analytics and commentary, powered by IBM watsonx, which the Company believes will become a key differentiator in TruGolf's software ecosystem.
• Franchise and multi-bay facility model under construction, with the first“Golf Everywhere” installation in Flower Mound, TX, representing the blueprint for national rollout.
  

“Q3 marked a pivotal quarter for TruGolf as we completed the restructuring of our balance sheet, regained full NASDAQ compliance, and positioned the company for growth in 2026.” Said Chris Jones, CEO and Director of TruGolf.“Today TruGolf's underlying fundamentals are stronger than they have been since going public, we are now operating with a capital structure free of short-term debt pressure, strong liquidity and a positive equity base. We expect to maintain sufficient cash to fund operations for at least 12 months and anticipate renewed growth momentum in 2026 as new product lines begin contributing revenue. We believe our share price does not yet reflect the progress achieved or the opportunity ahead, and we remain confident that operational execution and strategic visibility in 2026 will unlock meaningful shareholder value.”

In the quarter, the Company experienced significant professional fees ($0.4 million) in connection with regaining compliance with Nasdaq listing requirements. At the same time, it recognized large development costs ($0.2 million) and increased contract labor costs ($0.3 million) associated with refreshing its product and software offerings. Additionally, top line sales were reduced in the quarter by ($2.1 million) as compared to 2024's quarter primarily due to a change in our policy for recognition of sales of product licenses. This change has also led to an increase in deferred revenue.

Gross margin for 2025's third quarter was 69.3% as compared to 69.1% in 2024's quarter and a major improvement from 2025's second quarter of 44.4% as performance returned to historic levels. 2025's third quarter loss from operations was higher at ($1.1) million as compared to profits of $0.9 million in the 2024 period, driven largely by SG&A costs in the third quarter due to the previously mentioned higher professional fees in connection with regaining NASDAQ compliance, higher costs of contract labor used in connection with product upgrades and increased amortization of capitalized software. Somewhat offsetting these higher operating expenses was a $1.1 million decrease in salaries, wages and benefits due primarily to an increase in salaries being capitalized for time spent on developing new versions of the Company's platform software.

Net losses increased to ($7.3) million for 2025's third quarter, versus a net loss of ($0.06) million in the 2024 period, driven most notably by the losses from extinguishment of $6.1 million in debt in the quarter and the associated recognition of interest expenses associated with the exchange of convertible notes for Series A Preferred shares and warrants in the period as well as $0.4 million in professional fees and related expenses associated with regaining compliance with Nasdaq listing standards.

Interest expense in the third quarter of 2025 declined by $0.8 million due to exchange of outstanding convertible notes. The convertible note exchange in the third quarter resulted in the previously mentioned ($6.1) million loss on extinguishment of debt. The Company's liabilities declined by $3.3 million in the quarter to $16.7 million.

Disclaimer on Forward Looking Statements

This news release contains certain statements that constitute“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements that are not of historical fact constitute“forward-looking statements” and accordingly, involve estimates, assumptions, forecasts, judgements and uncertainties. Forward-looking statements include, without limitation, the ability of the Company to fund its operations for 12 months and the success of the rollout of its new products. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. The Company has attempted to identify forward-looking statements by terminology including ''believes,'' ''estimates,'' ''anticipates,'' ''expects,'' ''plans,'' ''projects,'' ''intends,'' ''potential,'' ''may,'' ''could,'' ''might,'' ''will,'' 'should,'' ''approximately'' or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are only predictions and involve known and unknown risks, uncertainties, and other factors. Any forward-looking statements contained in this release speak only as of its date. The Company undertakes no obligation to update any forward-looking statements contained in this release to reflect events or circumstances occurring after its date or to reflect the occurrence of unanticipated events. More detailed information about the risks and uncertainties affecting the Company is contained under the heading "Risk Factors" in the Company's Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC, which are available on the SEC's website,

About TruGolf:

Since 1983, TruGolf has been passionate about driving the golf industry with innovative indoor golf solutions. TruGolf builds products that capture the spirit of golf. TruGolf's mission is to help grow the game by attempting to make it more Available, Approachable, and Affordable through technology - because TruGolf believes Golf is for Everyone. TruGolf's team has built award-winning video games ("Links"), innovative hardware solutions, and an all-new e-sports platform to connect golfers around the world with E6 CONNECT. Since TruGolf's beginning, TruGolf has continued to attempt to define and redefine what is possible with golf technology.

Contact:	Michael Bacal
	...
	917-886-9071

TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

		September 30,			December 31,
		2025			2024
		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	11,435,121			$	8,782,077
Restricted cash			2,100,000				2,100,000
Accounts receivable, net			2,246,756				1,399,153
Inventory, net			2,675,839				2,349,345
Prepaid expenses and other current assets			701,123				116,619
Other current assets			-				45,737
Total Current Assets			19,158,839				14,792,931
Property and equipment, net			246,349				143,852
Capitalized software development costs, net			3,183,751				1,540,121
Right-of-use assets			364,253				634,269
Other long-term assets			31,023				31,023
Total Assets		$	22,984,215			$	17,142,196
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable		$	2,813,124			$	2,819,702
Deferred revenue			6,186,620				3,113,010
Notes payable, current portion			10,573				10,001
Notes payable to related parties, current portion			2,668,500				2,937,000
Line of credit, bank			802,738				802,738
Dividend notes payable			118,362				4,023,923
Accrued interest			600,233				661,376
Accrued and other current liabilities			1,594,330				999,307
Accrued and other current liabilities - assumed in Merger			45,008				45,008
Lease liability, current portion			159,834				363,102
Total Current Liabilities			14,999,322				15,775,167
Non-current Liabilities:
Notes payable, net of current portion			1,716				9,732
Note payables to related parties, net of current portion			505,500				624,000
PIPE loan payable, net			-				4,068,953
Gross sales royalty payable			1,000,000				1,000,000
Lease liability, net of current portion			220,551				305,125
Total Liabilities			16,727,089				21,782,977
Commitments and Contingencies
Stockholders' Equity (Deficit):
Preferred stock, $0.0001 par value, 10 million shares authorized
Series A Convertible Preferred Stock, $0.0001 par value per share; authorized - 50,000 shares; 8,189 and 0 shares issued and outstanding, respectively. Liquidation preference of $3,140,519 as of September 30, 2025.			1				-
Common stock, $0.0001 par value, 660,000,000 shares authorized:
Common stock - Series A, $0.0001 par value, 650 million shares authorized;1,894,519 and 522,411 shares issued and outstanding, respectively			189				52
Common stock - Series B, $0.0001 par value, 10 million shares authorized; 200,000 and 34,337 shares issued and outstanding, respectively			20				3
Treasury stock at cost, 94 shares of common stock held, respectively			(2,037,000	)			(2,037,000	)
Additional paid-in capital			45,111,416				18,551,660
Accumulated deficit			(36,817,500	)			(21,155,496	)
Total Stockholders' Equity (Deficit)			6,257,126				(4,640,781	)
Total Liabilities and Stockholders' Equity (Deficit)		$	22,984,215			$	17,142,196

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

		For the			For the			For the			For the
		Three Months Ended			Three Months Ended			Nine Months Ended			Nine Months Ended
		September 30, 2025			September 30, 2024			September 30, 2025			September 30, 2024
Revenue, net		$	4,105,965			$	6,236,795			$	13,806,059			$	15,121,980
Cost of revenue			1,258,628				1,924,093				5,383,786				5,183,328
Total gross profit			2,847,337				4,312,702				8,422,273				9,938,652
Operating expenses:
Royalties			56,465				166,631				420,480				719,668
Salaries, wages and benefits			564,624				1,695,678				3,517,650				4,654,560
Selling, general and administrative			3,339,742				1,578,112				8,701,887				5,420,872
Total operating expenses			3,960,831				3,440,421				12,640,017				10,795,100
Loss from operations			(1,113,494	)			872,281				(4,217,744	)			(856,448	)
Other (expenses) income:
Interest income			78,725				38,592				198,151				105,800
Interest expense			(108,315	)			(971,048	)			(3,115,883	)			(2,176,810	)
Loss on extinguishment of debt			(6,135,160	)			-				(6,135,160	)			-
Loss on investment			-				-				-				(3,912	)
Other income			-				-				600				-
Total other expense			(6,164,750	)			(932,456	)			(9,052,292	)			(2,074,922	)
Loss from operations before provision for income taxes			(7,278,244	)			(60,175	)			(13,270,036	)			(2,931,370	)
Provision for income taxes			-				-				-				-
Net loss		$	(7,278,244	)		$	(60,175	)		$	(13,270,036	)		$	(2,931,370	)
Net loss per common share Series A - basic and diluted		$	(4.87	)		$	(0.00	)		$	(13.36	)		$	(0.28	)
Weighted average shares outstanding - basic and diluted			1,495,411				13,380,737				993,182				10,550,277

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

TRUGOLF HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

		For the			For the
		Nine Months Ended			Nine Months Ended
		September 30, 2025			September 30, 2024
Cash flows from operating activities:
Net loss		$	(13,270,036	)		$	(2,931,370	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			747,473				331,728
Amortization of convertible notes discount			359,037				47,447
Amortization of right-of-use asset			270,016				251,612
Bad debt expense			74,818				-
Change in OCI			-				1,662
Loss on extinguishment of debt			6,135,160				-
Stock issued for make good provisions on debt conversion			2,169,707				-
Stock options issued to employees			10,025				-
Stock issued for interest			-				341,696
Changes in operating assets and liabilities:
Accounts receivable, net			(922,416	)			(2,143,225	)
Inventory, net			(326,494	)			(205,146	)
Prepaid expenses			(584,504	)			163,101
Other current assets			45,737				2,478,953
Accounts payable			(6,579	)			228,437
Deferred revenue			3,073,610				3,470,881
Accrued interest payable			(61,143	)			1,208,014
Accrued and other current liabilities			595,020				75,576
Other liabilities			-				(1,148	)
Lease liability			(287,842	)			(246,437	)
Net cash provided by (used in) operating activities			(1,978,411	)			3,071,781
Cash flows from investing activities:
Purchases of property and equipment			(98,004	)			-
Capitalized software, net			(2,395,596	)			(1,967,418	)
Reduction in long term assets			-				(115	)
Net cash used in investing activities			(2,493,600	)			(1,967,533	)
Cash flows from financing activities:
Proceeds from PIPE loans, net of discount			2,520,000				4,185,000
Proceeds from exercise of Series A Preferred warrants			4,999,500				-
Proceeds from notes payable - related party			-				1,000,000
Cash acquired in Merger			-				103,818
Costs of Merger paid from PIPE loan			-				(1,947,787	)
Repayments of line of credit			-				(1,980,937	)
Repayments of liabilities assumed in Merger			-				(15,716	)
Repayments of notes payable			(7,445	)			(7,005	)
Repayments of notes payable - related party			(387,000	)			(287,000	)
Repayment of notes payable assumed in Merger			-				(100,000	)
Net cash provided by financing activities			7,125,055				950,373
Net change in cash, cash equivalents and restricted cash			2,653,044				2,054,621
Cash, cash equivalents and restricted cash - beginning of year			10,882,077				5,397,564
Cash, cash equivalents and restricted cash - end of year		$	13,535,121			$	7,452,185
Supplemental cash flow information:
Cash paid for:
Interest		$	108,993			$	548,041
Income taxes		$	-			$	-
Non-cash investing and financing activities:
PIPE note principal converted to Class A Common Stock		$	3,213,000			$	-
Dividend note principal converted to Class A and Class B Common Stock		$	3,905,561			$	-
Exchange of PIPE Notes and Series A and B Warrants for Series A Convertible Preferred Stock and Warrants for Series A Convertible Preferred Stock		$	5,651,310			$	-
Series A Convertible Preferred Stock issued in exchange of PIPE Notes		$	4,558,841			$	-
Series A Convertible Preferred Stock dividends converted to Class A Common Stock		$	2,391,968			$	-
Notes payable assumed in Merger		$	-			$	1,565,000
Accrued liabilities assumed in Merger		$	-			$	310,724
Remeasurement of common stock exchanged/issued in Merger		$	-			$	(1,875,724	)

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

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