- TruGolf Holdings (TRUG, Financial) achieved record sales of $21.9 million in 2024, up 6.2% from 2023.
- Net losses reduced by 14.5% to $8.8 million; gross margin improved from 61.9% to 66.7%.
- Risk of Nasdaq delisting due to insufficient stockholders' equity; appeal hearing set for May 15, 2025.
TruGolf Holdings, Inc. (NASDAQ: TRUG), a leading provider of golf simulator software and hardware, has announced its 2024 financial results, marking a year of record sales. The company reported a total revenue of $21.9 million, which is a 6.2% increase compared to the previous year. Despite product availability challenges, the market's positive reception of new hardware and software products drove this growth.
In terms of profitability, TruGolf managed to narrow its net losses by 14.5% to $8.8 million, down from $10.3 million in 2023. A significant factor in the financial performance was an improvement in gross margin, which climbed to 66.7% from 61.9% last year.
Operational efficiency was further reflected in a 75% reduction in operating loss to $2.1 million, achieved by implementing better cost controls, including a 22% cut in operational expenses and a 40% decrease in SG&A expenses. Cash flow usage in operations improved by 35%, resulting in a reduced outflow of $4.0 million.
TruGolf ended the year with $10.9 million in cash reserves. However, the company faces a significant challenge with a potential Nasdaq delisting due to insufficient stockholders' equity. An appeal hearing is scheduled for May 15, 2025, to contest the delisting.
Looking ahead, TruGolf plans to leverage its cash position to introduce its first franchise locations by the second quarter of 2025, aiming for continued growth and market expansion.
