TruGolf Positioned For Multi-Year Growth From Subscription Revenue And Franchise Potential: Analyst

Core Viewpoint - TruGolf Holdings, Inc. has initiated coverage with a price forecast of $2, focusing on golf technology and esports platforms following a merger in Q1 2024 [1] Group 1: Growth Projections - Analyst Jack Vander Aarde projects strong multi-year growth driven by next-generation paid software subscriptions, hardware replacement sales, and accelerated domestic franchise center rollouts [2] - The company has secured commitments for 120 U.S. franchise locations, potentially generating over$24 million in revenue from bundled hardware and equipment [3] - Aarde anticipates revenue growth of 9% in 2024, 20% in 2025, and 30% in 2026 [4] Group 2: Financial Outlook - The company is expected to reach nearly breakeven EBITDA in 2024, with positive EBITDA and free cash flow projected for 2025 [5] - Aarde forecasts a 10-year revenue compound annual growth rate of 20% and EBITDA margins of 20% [5] - TruGolf ended Q3 2024 with $7.5 million in cash, sufficient to support operations for at least 12 months [5] Group 3: Strategic Initiatives - TruGolf may explore strategic growth capital opportunities to accelerate franchise expansion [6] - TRUG shares have seen a price increase of 19.7$0.4423 [7]