One-glance verdict
Undervalued
$13.96 our estimate vs market $0.43
Wall Street consensus: $6.00 (-57.0% lower than our fair-value estimate)
97% below our estimate, below the bear case
Fundamentals snapshot
TruGolf Holdings, Inc.
TRUG · NCM · Communication Services · Electronic Gaming & Multimedia
Current price
$0.43
52-week range
$0.36 - $28.25
Market cap
$830.85K
Balance sheet
Healthy
-1.87x Concerning
Net cash $2.48M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
3 Risks
2 rewards · 3 risks
- Reward Revenue grew 5.9% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -349.3% last year — the company lost money on shareholders' equity.
- Risk Insider ownership is only 0.5% (peer median: 13.2%).
What this company does
TruGolf Holdings, Inc.
TruGolf sells indoor golf simulators that let people play virtual golf at home or in businesses like sports bars. The company makes money from one-time sales of the physical machines and also from its software, which can create recurring revenue (predictable income from ongoing customer payments like subscriptions). This matters because combining large hardware sales with steady software income can help make the company's earnings more consistent over time.
How the company got here
TruGolf's story begins back in 1982, with roots in a very popular computer golf game called 'Links'. The original company was bought by Microsoft in 1999, but the core team stayed together to focus on creating realistic indoor golf experiences. For years, they built a reputation for high-quality golf simulators, which are systems that let you play golf indoors. In late 2023, the company became publicly traded on the stock market through a special type of merger called a SPAC (Special Purpose Acquisition Company), which is a faster way for a private company to start selling its stock to the public.
What it actually does
Imagine being able to play a full round of golf on a famous course without ever leaving your home or a local entertainment center. That's what TruGolf makes possible. They design and sell complete indoor golf simulator packages, which include a large screen, a projector, and special sensors that track your real golf swing and the ball's flight. Their software then shows your shot playing out in a highly realistic, video-game-like environment. Beyond just golf, they also use this technology to create other sports games, like soccer and dodgeball, that you can play in the same simulator.
Golf Simulators (Hardware)
This is the company's largest business, making up most of its sales. TruGolf sells the physical equipment needed for an indoor golf setup, from portable home units to large, custom-built systems for businesses like golf clubs or entertainment venues. Customers, both individuals and businesses, pay a one-time price for the hardware package, which can range from several thousand dollars to over $50,000. This part of the business generates revenue (the money a company makes from sales) from each unit sold.
E6 Connect (Software)
This is the software that acts as the brain behind the simulator experience. It's what creates the beautiful graphics of the golf courses and calculates where your ball goes. TruGolf makes money here in two ways: the software is included with their own hardware, and they also license it (sell permission to use it) to other hardware makers. They are increasingly focused on selling subscriptions for premium features, new courses, and online play, which creates recurring revenue (a steady, predictable income stream, like a monthly magazine subscription).
TruGolf Links (Franchising)
This is a newer and growing part of the company's business. Instead of just selling simulators to others, TruGolf is now franchising its own branded indoor golf centers. A franchisee (an independent business owner) pays TruGolf fees to open a 'TruGolf Links' location, using its brand name and technology. This allows the company to expand its physical presence and brand recognition without owning all the locations itself, creating a new source of income from franchise fees and ongoing royalties (a percentage of the franchisee's sales).
What management is betting on now
The company's leadership is focused on growing its software business to create more stable, subscription-based income, which is often more predictable than one-time hardware sales. They are also developing new products, like their E6 APEX software which uses AI (Artificial Intelligence) to create new golf courses much faster. Another key part of their strategy is expanding their new franchising business, TruGolf Links, to get more people playing on their systems in dedicated entertainment venues across the country.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-7.36M
FY2025 Q1
$-513.28K
FY2025 Q2
$-923.62K
FY2025 Q3
$-675.90K
FY2025 Q4
$172.59K
FY2026 Q1
$-200.43K
FY2026 Q2
$-1.38M
Revenue
$5.79M
Net income
$-447.81K
Diluted EPS
-0.37
Operating cash flow
$-1.28M
Free cash flow
$-1.38M
Fetching…
Sources
Revenue
$5.02M
Net income
$-1.45M
Diluted EPS
-2.75
Operating cash flow
$-122.20K
Free cash flow
$-200.43K
Fetching…
Sources
Revenue
$5.07M
Net income
$-1.96M
Diluted EPS
2.35
Operating cash flow
$280.03K
Free cash flow
$172.59K
Fetching…
Sources
Revenue
$4.11M
Net income
$-7.28M
Diluted EPS
-4.87
Operating cash flow
$-623.87K
Free cash flow
$-675.90K
Fetching…
Sources
Revenue
$4.31M
Net income
$-3.32M
Diluted EPS
-4.63
Operating cash flow
$-905.43K
Free cash flow
$-923.62K
Fetching…
Sources
Revenue
$5.39M
Net income
$-2.67M
Diluted EPS
-44.24
Operating cash flow
$-449.12K
Free cash flow
$-513.28K
Fetching…
Sources
Revenue
$11.21M
Net income
$-5.86M
Diluted EPS
-0.42
Operating cash flow
$-7.07M
Free cash flow
$-7.36M
Fetching…
Sources
Revenue
$6.24M
Net income
$-60.17K
Diluted EPS
0.00
Operating cash flow
$455.81K
Free cash flow
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Sources
Is it cheap or expensive?
Fair value $13.96 vs current price $0.43
Wall Street consensus is the average analyst price target: $6.00 (-57.0% lower than our fair-value estimate).
Our most-likely fair value is $13.96 a share — about 3,132.1% above today's price of $0.43, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $2.5M - more cash than debt. Interest coverage -1.9x.
Net debt
$-2.48M
Interest coverage
-1.87x
TruGolf Holdings, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
TRUG
BASELINE
TruGolf Holdings, Inc.
Total debt $3.89M Interest coverage -1.87x This is the baseline the peer rows are being compared against.
Total debt $1.43M Interest coverage 172.94x This peer still has a real interest-payment cushion, while TRUG does not.
Total debt $343.20M Interest coverage 0.91x This peer still has a real interest-payment cushion, while TRUG does not.
Total debt $13.48M Interest coverage -20.56x Neither company has much profit cushion over interest right now.
Total debt $12.87M Interest coverage -23.83x Neither company has much profit cushion over interest right now.
Total debt $1.09B Interest coverage 5.04x This peer still has a real interest-payment cushion, while TRUG does not.
What you should know
The case for and against TRUG
2 Rewards
3 Risks
Rewards
-
Revenue grew 5.9% last year.
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -349.3% last year — the company lost money on shareholders' equity.
-
Insider ownership is only 0.5% (peer median: 13.2%).
-
Operating margin compressed from 5.4% to -3.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
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P/B
0.11x
P/S
0.04x
EV/EBITDA
0.44x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
52.3%
Operating margin
-3.8%
Net margin
-55.7%
ROE
-349.3%
ROA
-13.3%
Health
Liquidity and balance-sheet strength
Debt / equity
1.89x
Current ratio
0.84x
Quick ratio
0.53x
Total debt
$3.89M
Total cash
$6.37M
Growth
How the business has been compounding
Revenue TTM
$19.99M
Revenue 5Y CAGR
-13.6%
EPS TTM
-44.26
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-1.74M
Free CF TTM
$-5.14M
FCF margin
-25.7%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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