#TruGolf Holdings Reports Q1 2026 Results
TruGolf Holdings, Inc. (NASDAQ: TRUG) reported first quarter 2026 results on May 21, showing a net loss of $1.4 million, down from $2.7 million in the same period a year earlier. Revenue for the quarter was $5.0 million, compared with $5.2 million in Q1 2025.
The golf simulator company, which sells both hardware systems and software subscriptions, has been working to restructure its balance sheet following a period of elevated debt costs. The improvement in net loss was driven primarily by a reduction in interest expense rather than top-line growth.
#Net Loss Narrows as Interest Expense Falls 89%
Interest expense in Q1 2026 declined to $0.2 million from $1.5 million in Q1 2025, a reduction of 89.2%. TruGolf attributed the change to earlier efforts to restructure its debt and convert it into preferred shares.
Total operating expenses fell 14.9% year over year to $4.0 million. Salary costs declined 59.2% to $0.8 million from $1.9 million, reflecting a change in accounting treatment under which the company now capitalizes the salary component of software development costs.
Gross margin declined to 53.0% in Q1 2026 from 68% in Q1 2025. TruGolf said the compression resulted from the inclusion of warehouse employee salaries and an increase in shipping costs within cost of revenues, neither of which were reflected in that line in the prior year period.
#Golf Simulator Revenue Dips as Software Contracts Rise
First quarter revenue of $5.0 million reflected a $0.2 million, or 4.4%, decline in golf simulator hardware sales. Software contract revenue increased modestly, partially offsetting the hardware softness, though TruGolf did not specify the dollar amount of the software increase.
Net cash used in operating activities narrowed to $0.1 million from $0.4 million in Q1 2025. TruGolf said the improvement was primarily attributable to favorable changes in working capital, including increases in deferred revenue and accounts payable. The company ended the quarter with $10.9 million in cash, down from $12.6 million at the end of Q4 2025.
"Q1 was a solid start to the year for TruGolf but we have greater expectations to grow the top line over the course of 2026 through greater market adoption of the new products and features we have been introducing in the last 12 months," Chris Jones, CEO and Director of TruGolf, said in the earnings release.
#Franchise Rollout and Executive Appointments Signal Expansion Plans
During the quarter, TruGolf appointed David Harper as Head of Global Sales and Steven Passey as Chief Financial Officer. Jones cited Harper's experience in developing sales efforts and Passey's background in financial operations for smaller organizations as reasons for the appointments.
TruGolf also announced two TruGolf Links flagship locations on Long Island, New York, both targeted to open before the end of 2026. The company said it continues to expect its first TruGolf Links franchise location to open in Cherry Hill, New Jersey in the second quarter of 2026.
Indoor golf has expanded steadily in North America over the past several years, with simulator venues attracting both recreational and competitive players. TruGolf competes in both the consumer hardware market and the commercial venue segment through its franchise model.
The company repurchased 439,208 shares for $346,503 in Q1 2026 under its previously announced share repurchase plan.
Management projected top-line growth over the remainder of 2026 through adoption of recently introduced products, though the timing of franchise openings, execution of the sales expansion strategy, and macroeconomic conditions affecting consumer and commercial spending remain risks to that outlook.