Revenue volatility remains a primary concern, with gross margins contracting to 21.6% in 2025Q4, reflecting a lack of pricing power in the competitive simulator hardware market.
| Sales/Revenue | 18.51M | 18.88M | 21.86M | 20.58M | 20.23M | 21.25M | 0 |
| Revenue Growth % | -16.76% | -13.63% | 6.19% | 1.76% | -4.79% | - | - |
| Cost of Goods Sold | 9.97M | 13.98M | 7.27M | 8.54M | 7.02M | 5.78M | 0 |
| COGS % of Revenue | - | 74.03% | 33.27% | 41.47% | 34.7% | 27.2% | - |
| Gross Profit | 8.54M | 4.9M | 14.59M | 12.05M | 13.21M | 15.47M | 0 |
| Gross Margin % | 46.13% | 25.97% | 66.73% | 58.53% | 65.3% | 72.8% | - |
| Gross Profit Growth % | - | -66.38% | 21.07% | -8.79% | -14.59% | - | - |
| Operating Expenses | 14.7M | 11.01M | 16.69M | 20.71M | 12.48M | 9.16M | 59.4K |
| OpEx % of Revenue | - | 58.3% | 76.35% | 100.61% | 61.68% | 43.1% | - |
| Selling, General & Admin | 14.36M | 15.62M | 15.98M | 20.71M | 11.57M | 0 | 59.4K |
| SG&A % of Revenue | - | 82.75% | 73.12% | 100.61% | 57.19% | - | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 339.3K | -4.62M | 706.21K | 0 | 908.5K | 9.16M | 0 |
| Operating Income | -6.16M | -6.1M | -2.1M | -8.66M | 732.38K | 6.31M | -59.4K |
| Operating Margin % | -33.29% | -32.32% | -9.62% | -42.07% | 3.62% | 29.7% | - |
| Operating Income Growth % | - | -190.18% | 75.72% | -1282.47% | -88.39% | 10722.76% | - |
| EBITDA | -4.24M | -4.6M | -1.46M | -8.6M | 958.58K | 6.38M | -59.4K |
| EBITDA Margin % | -22.9% | -24.35% | -6.69% | -41.79% | 4.74% | 30.03% | - |
| EBITDA Growth % | -154% | -214.24% | 82.99% | -997.32% | -84.97% | 10840.62% | - |
| D&A (Non-Cash Add-back) | 1.92M | 1.5M | 639.84K | 58.64K | 226.2K | 70K | 0 |
| EBIT | -12.03M | -11.97M | -1.86M | -8.66M | 632.38K | 6.31M | -59.4K |
| Net Interest Income | -1.71M | -2.99M | -6.83M | 1.62M | -1.59M | -854.53K | 0 |
| Interest Income | 265.56K | 265.71K | 106.4K | 1.62M | 0 | 0 | 0 |
| Interest Expense | 1.97M | 3.26M | 6.93M | 0 | 0 | 854.53K | 0 |
| Other Income/Expense | -7.84M | -9.13M | -6.69M | -1.62M | -1.69M | -118.83K | 0 |
| Pretax Income | -14M | -15.23M | -8.8M | -10.28M | -956.84K | 6.19M | -59.4K |
| Pretax Margin % | -75.66% | -80.66% | -40.24% | -49.96% | -4.73% | 29.14% | - |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -14M | -15.23M | -8.8M | -10.28M | -956.84K | 6.19M | -59.4K |
| Net Margin % | -75.66% | -80.66% | -40.24% | -49.96% | -4.73% | 29.14% | - |
| Net Income Growth % | -37.79% | -73.13% | 14.47% | -974.69% | -115.46% | 10522.69% | - |
| Net Income (Continuing) | -14M | -15.23M | -8.8M | -10.28M | -956.84K | 6.19M | -59.4K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -26.57 | -51.39 | -25.60 | -12.20 | -1.40 | -0.25 | -0.04 |
| EPS Growth % | -964.16% | -100.74% | -109.84% | -771.43% | -455.56% | -600% | - |
| EPS (Basic) | - | -51.39 | -25.60 | -12.20 | -1.40 | -0.25 | -0.04 |
| Diluted Shares Outstanding | 527K | 296.31K | 344.07K | 840.6K | 661.6K | 821.66K | 821.66K |
| Basic Shares Outstanding | 527K | 296.31K | 344.07K | 840.6K | 661.6K | 821.66K | 821.66K |
| Dividend Payout Ratio | - | - | - | - | - | 6.67% | - |
Persistent negative operating margins
As indicated by recent quarterly financial disclosures, TruGolf's revenue trajectory has turned increasingly erratic, with a notable 24.7% year-over-year decline in 2025Q4, suggesting that the company is struggling to maintain consistent demand for its simulator hardware amidst a cooling post-pandemic consumer and commercial environment.
The inconsistent revenue performance appears to reflect a lack of durability in the company's core sales channels. Investors should monitor whether this contraction is a temporary cyclical lull or a structural loss of market share to more integrated hardware-software competitors.
Based on reported income statements, TruGolf's gross margin has fluctuated significantly, dropping to a low of 21.6% in 2025Q4 from historical peaks near 69%, which implies that the company lacks the pricing power necessary to offset rising manufacturing costs or inventory-related write-downs in its hardware segment.
This margin compression suggests that the company's hardware-heavy revenue mix is highly sensitive to production inefficiencies. The inability to maintain stable margins indicates that the firm may be forced to discount products aggressively to move inventory, further pressuring the bottom line.
According to the provided financial data, TruGolf consistently fails to achieve positive operating leverage, as evidenced by operating margins that reached -37.2% in 2025Q4, demonstrating that the company's fixed SG&A expenses are currently far too high relative to its shrinking gross profit pool.
The persistent inability to scale operating income suggests that the current corporate overhead is unsustainable without a significant revenue inflection. This structure warrants further investigation into whether management can effectively rationalize costs or if the business model is fundamentally over-leveraged for its current scale.
As reported in recent filings, TruGolf's net income remains deeply negative, with a net margin of -38.6% in 2025Q4, highlighting that the company is currently unable to cover its interest and corporate obligations, leading to a rapid depletion of its available cash reserves over time.
The recurring net losses appear to be driven by a combination of high operating expenses and a lack of sufficient gross profit to absorb them. Investors should be wary of the potential for future dilutive capital raises, as the current earnings profile suggests a high cash-burn rate.
Based on an analysis of the income statement, the primary risk to the investment thesis is the company's inability to achieve profitability, as evidenced by the -80.66% net margin observed in recent periods, which suggests that the current business model may be fundamentally flawed.
Short-sellers would likely focus on the company's inability to generate positive cash flow despite its established software library. The reliance on hardware sales in a commoditizing market may continue to act as a drag on performance, potentially leading to further margin erosion.
Quick answers to the most common questions about buying TRUG stock.
For fiscal year 2025, TruGolf Holdings, Inc. (TRUG) reported total revenue of $18.9M.
TruGolf Holdings, Inc. (TRUG) reported a net loss of $15.2M for the fiscal year ending 2025.
TruGolf Holdings, Inc. (TRUG) reported an operating income of $-6.1M, resulting in an operating profit margin of -32.3%. This margin reflects the operational efficiency of the business before interest and taxes.
TruGolf Holdings, Inc. (TRUG) generated $4.9M in gross profit for the year, representing a gross profit margin of 26.0%. This demonstrates the company's core pricing power and production efficiency.