Persistent free cash flow deficits, including a margin of -119.3% in 2026Q1, highlight a structural inability to cover operational expenditures with existing cash reserves of only $593K.
| Cash from Operations | -4.7M | -5.17M | -4.93M | -5.05M | -785K | -171K | -228K |
| Operating CF Margin % | - | -63.5% | -143.08% | -1446.13% | -413.16% | -85.5% | -125.27% |
| Operating CF Growth % | 35.49% | -4.81% | 2.34% | -542.93% | -359.06% | 25% | - |
| Net Income | -8.15M | -6.02M | -11.75M | -4.63M | -3.5M | -302K | -479K |
| Depreciation & Amortization | 386K | 339K | 216K | 58K | 11K | 0 | 0 |
| Stock-Based Compensation | -13K | 274K | 308K | 668K | 0 | 25K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 796K | -1.09M | 7.11M | 359K | 2.14M | -19K | 62K |
| Working Capital Changes | 2.29M | 1.33M | -808K | -1.51M | 572K | 125K | 189K |
| Change in Receivables | 35K | -37K | -81K | -51K | 9K | -10K | 13K |
| Change in Inventory | 364K | 453K | -616K | -131K | -62K | 29K | 27K |
| Change in Payables | 1.01M | 931K | 0 | 0 | 0 | 0 | 18K |
| Cash from Investing | -425K | -469K | -502K | -289K | -75K | 0 | 0 |
| Capital Expenditures | -425K | -469K | -502K | -289K | -75K | 0 | 0 |
| CapEx % of Revenue | 5.37% | 5.77% | 14.57% | 82.81% | 39.47% | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | -156K | -717K | 7.74M | 10.5M | 847K | 255K | 316K |
| Debt Issued (Net) | 488K | 0 | 0 | -921K | 150K | 250K | 316K |
| Equity Issued (Net) | -549K | -549K | 7.79M | 11.21M | 420K | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -549K | -549K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -95K | -168K | -50K | 215K | 277K | 5K | 0 |
| Net Change in Cash | -5.28M | -6.35M | 2.31M | 5.17M | -13K | 84K | 100K |
| Free Cash Flow | -5.12M | -5.63M | -5.43M | -5.34M | -860K | -171K | -228K |
| FCF Margin % | -64.7% | -69.27% | -157.65% | -1528.94% | -452.63% | -85.5% | -125.27% |
| FCF Growth % | 13.07% | -3.76% | -1.78% | -520.47% | -402.92% | 25% | - |
| FCF per Share | -111.54 | -122.44 | -82.41 | -130.81 | -24.73 | -5.59 | -7.46 |
| FCF Conversion (FCF/Net Income) | 0.63x | 0.86x | 0.42x | 1.09x | 0.22x | 0.57x | 0.48x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Liquidity and scale mismatch
According to quarterly financial data, NWTG consistently reports net losses that exceed operating cash outflows, with the OCF/NI ratio fluctuating wildly, including a 0.41 reading in 2026Q1, which suggests that the company's accounting earnings do not capture the full extent of its ongoing cash burn.
The persistent gap between net income and operating cash flow indicates that the company's accrual-based losses are being compounded by cash-intensive operational requirements. Investors should monitor this divergence, as it suggests that the business model requires significant external capital to bridge the gap between accounting performance and actual liquidity needs.
As reported in recent financial statements, NWTG has failed to generate positive free cash flow in any of the last ten quarters, with FCF margins reaching a low of -143.5% in 2024Q4, underscoring the structural inability of the current revenue base to cover operational and capital expenditures.
The trajectory of free cash flow remains firmly in negative territory, reflecting a business model that is currently consuming rather than generating cash. This trend warrants further investigation into whether the company can achieve a self-sustaining scale before its limited cash reserves are fully exhausted.
Based on reported figures, working capital changes have been highly erratic, swinging from a $1.3M inflow in 2025Q4 to a $247K outflow in 2025Q3, which suggests that the company's cash conversion cycle is heavily influenced by lumpy inventory management and inconsistent collection patterns from wholesale partners.
The reliance on working capital swings to mitigate operating cash outflows appears to be a temporary stopgap rather than a sustainable operational strategy. This volatility suggests that the company may be struggling to align its production cycles with actual retail sell-through, creating significant liquidity risk during seasonal downturns.
As indicated by historical filings, NWTG's capital expenditure as a percentage of revenue has been volatile, peaking at 160.7% in 2023Q4, which highlights the heavy investment required to maintain its specialized manufacturing infrastructure despite the company's relatively small revenue footprint in the leisure equipment market.
The high capital intensity relative to revenue suggests that the company is still in a heavy investment phase, likely focused on scaling its proprietary shaft technology. Investors should monitor whether these capital outlays are yielding the expected competitive advantages or if they represent an over-investment in capacity that the current market cannot support.
Quick answers to the most common questions about buying NWTG stock.
Newton Golf Company (NWTG) generated $-5.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Newton Golf Company (NWTG) reported negative free cash flow of $5.6M in 2025, indicating capital requirements exceeded cash from operations.
Newton Golf Company (NWTG) spent $0.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Newton Golf Company (NWTG) spent $0.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.