TruGolf Holdings, Inc. Revenue Disclosure
NOTE 4 – DISAGGREGATION OF REVENUES
The Company’s revenues are disaggregated based on revenue type, including (i) golf simulators, (ii) content software subscriptions, (iii) franchise revenue, and (iv) other.
The Company’s net revenues for the years ended December 31, 2025 and 2024, are disaggregated as follows:
| Year Ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues: | ||||||||
| Golf Simulators(1) | $ | 14,681,994 | $ | 13,708,760 | ||||
| Content Software Subscriptions | 3,710,245 | 7,852,699 | ||||||
| Franchise Revenue | 13,125 | |||||||
| Other(2) | 473,633 | 297,405 | ||||||
| Total net revenue | $ | 18,878,997 | $ | 21,282,649 | ||||
| (1) | Includes items such as hardware and proprietary perpetual licenses. | |
| (2) | Includes items such as shipping income and installation income. |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.