Core Insights - Newton Golf Company has launched its Fast Motion shafts at Club Champion, enhancing access to innovative golf technology [1][2] - The Fast Motion shaft has exceeded sales expectations, generating approximately $1.4 million in orders within two months of its launch [3][2] - The shaft is engineered with advanced materials, making it lighter and more accurate, and incorporates a unique fitting system for personalized performance [3][5] Company Overview - Newton Golf Company is a technology-driven golf equipment manufacturer focused on performance through physics-based engineering [5] - The company aims to empower golfers of all skill levels with advanced equipment designed for measurable improvements in stability, control, and consistency [5] Product Details - The Fast Motion shaft is about 10 grams lighter than the previous Motion series, utilizing high-modulus Toray carbon fibers for enhanced stability [3] - The shaft features Newton's proprietary DOT system, which replaces traditional flex labels with a performance-based fitting approach [3] Market Presence - Club Champion, a leading custom golf club fitter with over 130 locations, will offer the Fast Motion shafts, allowing golfers to test and fit the product under expert guidance [4][7] - The collaboration with Club Champion is expected to further drive demand and sales for Newton Golf's innovative products [4]

Core Viewpoint - FST Corp. reported significant revenue growth in the first half of 2025, driven by increased sales in the OEM sector, despite experiencing a net loss due to rising operating expenses and one-time costs related to its public listing [1][3][8]. Financial Performance - Revenue for the first six months of 2025 reached $22,193,432, marking a 24% increase from $17,829,745 in the same period of 2024 [1]. - Gross profit margin improved to 46.0% from 43.4% year-over-year, attributed to higher-margin product sales and enhanced operational efficiency [2]. - The company incurred a net loss of $5,827,047, or $(0.13) per share, compared to a net income of $77,617, or $0.01 per share, in the prior year [3]. - Total operating expenses rose by $3,357,809, or 40%, primarily due to increased personnel costs and marketing expenses [3]. - Loss from operations was $1,529,247, an increase from a loss of $644,225 in the previous year; however, adjusting for one-time expenses, the operating income would be approximately $220,000, an improvement of about $870,000 [4]. Cash Flow and Liquidity - As of June 30, 2025, cash and cash equivalents were $6,802,368, up from $5,098,420 at the end of 2024 [5]. - Net cash used in operating activities was $1,091,950 for the first half of 2025, contrasting with net cash provided of $1,420,385 in the same period of 2024 [6]. - The company believes its current liquidity and cash flows will be sufficient to meet operating requirements for the next 12 months [7]. Strategic Outlook - The CEO expressed optimism about continued sales momentum, driven by a new product line launch in Q4 and plans to expand OEM business and distribution channels in Southeast and East Asia, as well as Europe [8]. - The company anticipates that all listing expenses related to its merger will be accounted for by the end of 2025, potentially enhancing its bottom line in 2026 and beyond [9]. Company Background - FST Corp., founded in 1989, specializes in manufacturing and selling golf club shafts and related items, with a strong presence in the golf equipment market [9][10]. - The company's products are utilized by golfers at all levels, including professionals in major golf associations, and it aims to expand into under-tapped markets like the PRC [10].

Core Viewpoint - FST Corp. reported significant revenue growth in the first half of 2025, driven by increased sales in the OEM sector, despite experiencing a net loss due to rising operating expenses and one-time costs related to its public listing [1][3][8]. Financial Performance - Revenue for the first six months of 2025 reached $22,193,432, marking a 24% increase from $17,829,745 in the same period of 2024 [1]. - Gross profit margin improved to 46.0% in the first half of 2025, up from 43.4% in the prior-year period, attributed to higher-margin product sales and improved operational efficiency [2]. - The company reported a net loss of $5,827,047, or $(0.13) per share, compared to a net income of $77,617, or $0.01 per share, in the same period a year earlier [3]. - Total operating expenses increased by $3,357,809, or 40%, compared to the first half of 2024, primarily due to higher personnel costs and marketing expenses [3]. - Loss from operations was $1,529,247 for the first half of 2025, compared to a loss of $644,225 in the prior year; however, adjusting for one-time expenses, the company would show an operating income of approximately $220,000 [4]. Cash Flow and Liquidity - As of June 30, 2025, cash and cash equivalents were $6,802,368, up from $5,098,420 at the end of 2024; total current assets increased to $29,327,334 from $26,655,003, while total current liabilities rose to $34,151,914 from $22,113,495 [5]. - Net cash used in operating activities was $1,091,950 for the first half of 2025, compared to net cash provided of $1,420,385 in the first half of 2024 [6]. Strategic Outlook - The company anticipates continued sales momentum, driven by a new product line launch in Q4 and plans to expand OEM business and distribution channels in Southeast and East Asia, as well as Europe [8]. - FST expects to account for all listing expenses related to its merger by the end of 2025, which is projected to positively impact the bottom line in 2026 and beyond [9]. - The company operates a vertically integrated business model, enhancing its competitive advantages and positioning for growth in under-tapped markets, including the PRC [10].

Company Overview - FST Corp. is a leading manufacturer and marketer of steel and graphite golf shafts, providing various golf-related services [1][3] - Founded in 1992, the company sells golf club shafts and other items to golf equipment brands, OEMs, distributors, and consumers through KBS Golf Experience retail outlets [3] - FST's products are utilized by golfers at all levels, including professional players in the PGA and other major golf associations [3] - The company operates a vertically integrated business model that has established the KBS brand globally, creating significant competitive advantages [3] - Current growth strategies position FST for expansion into the PRC and other under-tapped golf shaft markets [3] Upcoming Events - David Chuang, CEO of FST Corp., will present and host one-on-one meetings with investors at the Sidoti August Virtual Investor Conference on August 20-21, 2025 [1] - The presentation is scheduled to begin at 2:30 PM ET on August 21, and registration for the event is free [2] - Virtual one-on-one meetings with investors will also be held on August 20-21, 2025 [2] Sidoti Events Overview - Sidoti & Company, LLC formed Sidoti Events, LLC in 2023 to focus on its growing conference business [4] - Sidoti has over 25 years of experience in independent securities research, primarily covering small and microcap companies [4] - The events provide corporate access and facilitate meaningful interactions between small and microcap issuers and investors [4]

Core Insights - Newton Golf Company reported a significant revenue increase of 154% year-over-year for Q2 2025, reaching $2.1 million compared to $813,000 in Q2 2024 [5] - The company raised its full-year 2025 revenue guidance to a range of $7.0 million to $7.5 million, reflecting stronger-than-anticipated demand [7] Financial Performance - Q2 2025 revenue rose to $2.1 million, a 154% increase from $813,000 in Q2 2024 [5] - For the first six months of 2025, revenue increased by 182% to $3.3 million, compared to $1.2 million in the first half of 2024 [5] - Gross profit for Q2 2025 was $1.4 million, up 186% from $489,000 in Q2 2024 [5] - The gross margin improved to 67.6% in Q2 2025, compared to 60.1% in Q2 2024 [5] - The net loss for Q2 2025 was $1.5 million, or ($0.34) per share, compared to a net loss of $1.2 million, or ($0.79) per share in Q2 2024 [5] Product and Market Developments - The Fast Motion shaft launched on April 29, 2025, has seen rapid adoption, with 1,817 units sold generating over $696,000 in gross sales in May and June [6] - The company surpassed 50 professional users across various tours, indicating strong market acceptance [6] - Increased production capacity has been implemented to meet the growing demand for Motion and Fast Motion shafts [6] Management Commentary - The CEO highlighted strong performance across multiple channels and increased marketing investments to build momentum [3] - The CFO expressed confidence in the company's ability to drive long-term value for shareholders while maintaining solid margins [3] Strategic Outlook - The company aims to scale operations and deepen product adoption in the second half of 2025, with new products and expanded retail partnerships on the horizon [8]

Core Points - Newton Golf Company will host a webcast and investor Q&A session on August 14, 2025, to discuss its second quarter 2025 financial results [1][2] - The session will feature Greg Campbell, Chairman and CEO, and Jeff Clayborne, CFO, who will cover recent business highlights and the outlook for the remainder of 2025 [2] - The webcast is open to shareholders, prospective investors, analysts, and media, with a replay available on the company's investor relations website [3] Company Overview - Newton Golf focuses on performance-driven innovation in golf equipment, utilizing principles of physics in its design process [5] - The company, formerly known as Sacks Parente, aims to empower golfers with scientifically advanced tools for improved consistency and accuracy [5]

Core Insights - The company reported better-than-expected earnings, leading to an 8.8% increase in shares, with investors optimistic about the upcoming spinoff of Topgolf, despite potential delays due to the resignation of the unit's CEO [1][8] Financial Performance - In Q2, revenue slightly declined by 4.1% to $1.11 billion, with adjusted earnings per share down 45.2% to $0.24, but both figures exceeded analyst expectations [2] - The core golf equipment business experienced a minor decline of 1.4%, while Topgolf's revenue was down only 1.2%, attributed to effective price cuts that improved customer traffic [2][3] Management Commentary - CEO Chip Brewer highlighted consumer strength in the golf equipment sector, cost-saving initiatives, and successful value strategies at Topgolf that enhanced traffic and sales trends [3] - Management raised the full-year guidance for Topgolf's revenue decline from a range of 6% to 12% to a narrower range of 6% to 9%, and also increased the low end of the adjusted EBITDA range [4] Spinoff Plans - The company is pursuing a spinoff of 80% of the Topgolf segment, which could optimize capital structures and unlock value, although the spinoff is now expected to be delayed until early 2026 due to the CEO's resignation [7][8] - Despite recent stock rallies, Topgolf remains approximately 75% below its 2021 highs, indicating potential for value recovery if consumer demand stabilizes and the spinoff is successful [6][8]

Financial Data and Key Metrics Changes - Acushnet reported worldwide net sales of $720 million for Q2 2025, a 5% increase year-over-year, driven by strong performance in golf equipment and gear segments [6][13] - For the first half of 2025, net sales reached $1.42 billion, up 3%, while adjusted EBITDA was $282 million, down 1% [6][13] - Gross profit for Q2 was $354 million, an increase of $21 million compared to Q2 2024, with a gross margin of 49.2%, up 40 basis points year-over-year [14][15] Business Line Data and Key Metrics Changes - Golf equipment sales increased mid-single digits in both the quarter and first half, led by new Pro V1 golf ball models and strong performance in GT metals and hybrid franchises [7][8] - Titleist golf equipment sales were up 10% compared to 2023, with growth in all regions, particularly in the US and EMEA [7][10] - Gear sales increased 7% in Q2 and 6% for the first half, with core Titleist categories growing mid-single digits [8][9] - FootJoy sales were down 2% in Q2 and 4% for the first half, aligning with expectations as the company shifts focus to premium performance footwear [9][10] Market Data and Key Metrics Changes - The US market saw 1.5 million new golfers in 2024, marking the seventh consecutive year of growth, contributing to a 2% increase in worldwide rounds of play [5][6] - EMEA revenues increased by 6% in the first half, driven by gains in Titleist golf equipment, particularly golf balls [10][11] - Revenues in Japan and Korea rose by 43% in the first half, although apparel, footwear, and gear markets remained soft [11] Company Strategy and Development Direction - Acushnet is focused on long-term growth through investments in golf equipment innovation and technology [6][12] - The company aims to manage macro uncertainties while delivering high-quality products and services to dedicated golfers [12][20] - Strategic initiatives include optimizing supply chain footprint and selective pricing actions to mitigate tariff impacts [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the golf industry's fundamentals and the company's product pipeline despite macroeconomic uncertainties [11][12] - The company anticipates low single-digit net sales growth for the second half of 2025, with a full-year FX headwind of approximately $5 million [20] - Management is closely monitoring tariff developments and their potential impact on consumer spending [20][21] Other Important Information - Acushnet returned approximately $154 million to shareholders through share repurchases and cash dividends [19] - The company initiated a voluntary retirement program, resulting in restructuring costs of $6.4 million in Q2 [15][16] Q&A Session Summary Question: Impact of inflation and pricing on the industry - Management noted that price increases have been observed in gear, footwear, and apparel, with some immunity in the ball business due to US manufacturing [23][25] Question: Demand and sell-through commentary - Management expressed satisfaction with sell-in results and indicated that inventory levels are normalized, linking this to healthy sell-through trends [35][36] Question: Customer response to new product launches - Management reported positive sell-through trends for new launches, including the Pro V1 and T series irons, with confidence in the back half of the year [44][46]

Financial Performance - Q2 2025 - Net sales reached $720.5 million, a 5.4% year-over-year increase, or 4.7% on a constant currency basis[9] - Golf Balls net sales were $262.2 million, up 5.9% year-over-year, or 5.4% on a constant currency basis[9] - Golf Clubs net sales increased to $191.6 million, a 7.9% year-over-year increase, or 7.0% on a constant currency basis[9] - Adjusted EBITDA was $143.1 million, a 9.2% increase compared to the previous year[9] - Adjusted EBITDA margin was 19.9% compared to 19.2% in the prior year[19] Financial Performance - H1 2025 - Net sales totaled $1,423.8 million, a 2.3% year-over-year increase, or 2.9% on a constant currency basis[9] - Golf Balls net sales were $475.5 million, up 4.4% year-over-year, or 4.7% on a constant currency basis[9] - Golf Clubs net sales increased to $399.4 million, a 4.7% year-over-year increase, or 5.2% on a constant currency basis[9] - Adjusted EBITDA was $282.0 million, a decrease of 0.9% compared to the previous year[9] - Adjusted EBITDA margin was 19.8% compared to 20.5% in the prior year[19] Regional Performance - Q2 2025 - United States net sales were $434.5 million, up 6.4% year-over-year[10] - EMEA net sales were $98.6 million, up 13.7% year-over-year, or 8.0% on a constant currency basis[10] Outlook - The company expects 2025 second half sales to increase low-single digits when compared to 2024[21]

Financial Data and Key Metrics Changes - Consolidated revenues for Q2 2025 were $1,110 million, representing a 4% year-over-year decrease, primarily due to decreased revenue in the Active Lifestyle segment [29] - Q2 adjusted EBITDA was $196 million, a 5% year-over-year decrease, mainly due to decreased revenue and incremental tariffs [30] - The company raised its full-year revenue guidance to a range of $3,800 million to $3,920 million, reflecting an increase of over $30 million at the midpoint compared to prior guidance [35] Business Line Data and Key Metrics Changes - Golf equipment revenue for Q2 was approximately flat year-over-year at $412 million, exceeding expectations [30] - Active Lifestyle segment revenue decreased by $36 million year-over-year to $214 million, primarily due to the sale of Jack Wolfskin and soft market conditions [31] - Topgolf Q2 revenue decreased by 2% year-over-year, primarily due to a 6% decline in same venue sales, partially offset by higher revenue from new venues [32] Market Data and Key Metrics Changes - Market conditions in the U.S. for golf equipment remain healthy, with rounds played approximately flat on a playable hour adjusted basis [8] - Conditions in the UK and Northern Europe markets are strong, while Asia and Central Europe are softer year-over-year [9] - The athleisure category in the Active Lifestyle segment is down mid to high single digits during Q2 [11] Company Strategy and Development Direction - The company closed the sale of Jack Wolfskin, enabling greater business focus and financial flexibility for Topgolf [4] - The company is committed to ongoing cost reduction and margin improvement initiatives, which have been beneficial in the current operating environment [6] - The strategic process for Topgolf is ongoing, with both a spin and sale being evaluated, although a spin is now impractical for the second half of the year [15][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the golf equipment segment, citing healthy consumer engagement and upcoming product launches [10] - The company is optimistic about the improving trends in same venue sales at Topgolf, driven by value initiatives and enhanced customer experience [12][39] - Management acknowledged the challenges posed by tariffs, increasing the estimated impact from $25 million to $40 million for the year [5][45] Other Important Information - The company reported an increase in available liquidity to $1,160 million as of June 30, 2025, primarily due to cash proceeds from the sale of Jack Wolfskin [32] - Net debt decreased to $2,390 million, down from $2,620 million year-over-year, reflecting improved cash balances [33] - The company expects to be free cash flow positive at both the total company and Topgolf in 2025 [38] Q&A Session Summary Question: Can you talk about the robust process regarding the spin and sale of Topgolf? - Management confirmed that the strategic direction remains unchanged, with only the timing of a potential spin being affected due to leadership changes [42][80] Question: What is the current health of the golf industry and drivers of the improving golf equipment business? - Management noted that the golf equipment business remains healthy, with consumer engagement strong and sell-through up low single digits [49] Question: What were the biggest contributors to the value initiatives at Topgolf? - Management highlighted the success of the Sunday Fun Pass and other value offerings, which significantly increased traffic and improved customer perception [57] Question: Can you provide an update on cost reduction efforts and labor efficiency initiatives? - Management indicated that teams have executed well on cost reduction, with improvements in labor efficiency and service speed contributing to stable margins [66] Question: How is the TravisMathew business trending? - Management reported that while the athleisure market is down, the women's category within TravisMathew continues to perform well [72]