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Core Insights - Topgolf Callaway Brands Corp. (MODG) has shown significant improvement in its balance sheet by the end of Q3 2025, with enhanced liquidity and reduced leverage due to strong cash generation and the sale of the Jack Wolfskin business [1] Financial Performance - Available liquidity increased to $1.25 billion, up nearly $400 million year-over-year, supported by higher operating cash flow and proceeds from the Jack Wolfskin sale [2] - Net debt decreased to $2.23 billion from $2.54 billion year-over-year, resulting in a reduction of net leverage to 3.8x from 4.6x [3] - REIT-adjusted leverage improved significantly to 1.4x from 2.4x, indicating reduced strain on the balance sheet [3][8] Future Outlook - Despite ongoing external pressures, particularly tariff-related cost headwinds expected to persist into 2026, the company’s stronger liquidity and lower leverage provide a more stable foundation for evaluating strategic alternatives for the Topgolf business [4] Market Performance - MODG shares have increased by 53.4% over the past six months, outperforming the industry average of 4.2% [5] - The company is currently trading at a forward 12-month price-to-sales (P/S) ratio of 0.65, which is lower compared to industry peers like Acushnet Holdings (P/S of 1.97) and American Outdoor Brands (P/S of 0.56) [9]

Topgolf Callaway Brands is a global leader in golf equipment, lifestyle apparel, and technology-enabled entertainment venues. The company combines a diversified product portfolio with experiential offerings, integrating retail, digital, and venue-based revenue streams. Its scale and brand strength position it competitively in both consumer products and leisure entertainment sectors.As of Friday, MODG shares were priced at $13.44, up a staggering 55% over the past year and well outperforming the S&P 500's ro ...

Core Insights - Tapasya Fund achieved a net return of 23.5% in 2025, outperforming the S&P 500's return of 17.9% [1] - The fund's performance was bolstered by the theme of Artificial Intelligence (AI), which helped the market reach over 38 new all-time highs in 2025 [1] - The fund aims to avoid sector-specific bubble bursts to mitigate the impact of general market downturns on its portfolio [1] Company Insights - Topgolf Callaway Brands Corp. (NYSE:MODG) experienced a one-month return of 19.12% and a 52-week gain of 60.90% [2] - As of January 8, 2026, Topgolf Callaway Brands Corp. had a market capitalization of $2.497 billion, with shares closing at $13.58 [2] - The investment in Topgolf Callaway Brands Corp. was deemed a mistake by Tapasya Fund due to management's failure to execute a planned split, resulting in losses, although the small position size minimized overall portfolio impact [3] Hedge Fund Insights - Topgolf Callaway Brands Corp. was held by 34 hedge fund portfolios at the end of Q3 2025, an increase from 28 in the previous quarter [4] - Despite recognizing the potential of Topgolf Callaway Brands Corp., the company believes that certain AI stocks present greater upside potential and lower downside risk [4]

Key Takeaways MODG rallied 45.1% in three months after Q3 results showed a clear operational turnaround.MODG saw Topgolf same-venue sales turn positive as value offers drove high-teens traffic growth in core bays.MODG raised revenue and EBITDA guidance on strong equipment demand and cost control.Shares of the company Topgolf Callaway Brands Corp. (MODG) have surged 45.1% compared with the industry and the S&P 500’s growth of 1.1% and 3.4%, respectively.Shares of Topgolf Callaway have rallied as investors re ...

Core Insights - Topgolf Callaway Brands Corp. (MODG) is expanding the rollout of the Toast point-of-sale (POS) system to enhance operational efficiency as venue traffic improves [1][4] - The implementation of Toast has led to faster service and better labor efficiency, contributing to increased spending per visit [1][2] - The rollout is expected to continue through 2026, with full implementation targeted by the end of Q2 2026 [1][4] Operational Efficiency - The POS upgrade is facilitating more effective operations during peak visitation periods, improving service execution and supporting increased traffic from recent value initiatives [2] - Management emphasizes the importance of operational efficiency to maintain venue performance as traffic volumes rise [2] Guest Experience Initiatives - Toast will support initiatives aimed at simplifying the guest experience, including pay-at-bay and mobile food ordering, which will be piloted in Q4 2025 [3] - These features are designed to streamline ordering and payment processes, potentially increasing food and beverage spending per visit [3] Standardization and Scalability - The broader goal of the POS transition is to create a standardized and scalable operating model across Topgolf venues [4] - Early productivity benefits from the rollout suggest that technology will play a crucial role in stabilizing venue-level economics as adoption expands [4] Price Performance and Valuation - MODG shares have increased by 48.8% over the past six months, contrasting with a 1% decline in the industry [5] - The company is currently trading at a forward 12-month price-to-sales (P/S) ratio of 0.6, which is lower than industry peers like Acushnet Holdings (1.91) and American Outdoor Brands (0.51) [8] Earnings Estimates - The Zacks Consensus Estimate for MODG's 2026 loss has narrowed over the past 60 days, indicating potential improvements in financial outlook [10]

Core Insights - The Zacks Leisure and Recreation Products industry is experiencing growth due to increased health and fitness awareness, leading to solid demand for fitness products and outdoor recreation items [1][5]. Industry Overview - The industry includes companies that provide a range of recreational products and services, such as amusement products, swimming pools, marine products, and outdoor equipment. Economic growth, a healthy labor market, and rising disposable income drive consumer demand [2]. Trends Influencing the Industry - The U.S. golf business is in a growth cycle, with increased participation and engagement across various age groups. Off-course experiences are attracting younger consumers, broadening the sport's appeal [3]. - Higher play frequency among golfers is leading to increased demand for upgraded equipment, while innovations in fitting and data analytics are enhancing spending per participant [4]. - There is robust demand for fitness-related products, with consumers investing in home workout equipment and digital fitness platforms, driven by a focus on personal well-being [5]. - Technology is redefining engagement in the industry, with smart fitness equipment and app-enabled products enhancing customer experiences and extending lifetime value [6]. Industry Performance - The Zacks Leisure and Recreation Products industry holds a Zacks Industry Rank of 110, placing it in the top 45% of over 244 Zacks industries, indicating positive near-term prospects [7][8]. - Despite the positive outlook, the industry has underperformed the S&P 500, with a collective decline of 2.2% over the past year compared to the S&P 500's rise of 18.3% [10]. Valuation Metrics - The industry trades at a forward price-to-earnings ratio of 21.4X, which is lower than the S&P 500's 23.11X and the sector's 18.45X. The industry has seen a range from 13.25X to 37.40X over the past five years, with a median of 20.67X [13]. Notable Companies - **Topgolf Callaway**: The company has seen a resurgence in traffic and sales, particularly in its core customer segment, with a Zacks Rank of 1 (Strong Buy) [14]. The stock has increased by 48.9% in the past six months [15]. - **Amer Sports**: Benefiting from strong demand for premium brands, particularly in footwear, with a Zacks Rank of 2 (Buy). The company expects a 22% year-over-year growth in earnings per share [19][20]. - **Acushnet Holdings**: Strong global golf participation and demand for Titleist products are driving growth, with a projected 7.1% increase in earnings for 2026 [23][24]. - **Pool Corporation**: Expected to benefit from steady maintenance demand and digital enhancements, with a forecasted 6.6% increase in earnings for 2026 [27][28].

The new Chrome Family is designed to believe in faster with a revolutionary new Tour Fast Mantle, combined with incredible consistency for optimized performancethCARLSBAD, Calif., Jan. 6, 2026 /PRNewswire/ -- Today Callaway Golf, one of the industry's leaders in equipment design, performance, and innovation, announced their new Chrome Tour, Chrome Tour X, and Chrome Soft Golf Balls, all available at retail on January 30.The new lineup features a revolutionary Tour Fast Mantle, with a 16% higher flex modulu ...

Core Viewpoint - The company has successfully completed the sale of a 60% stake in its Topgolf and Toptracer businesses for approximately $1.1 billion, which will enhance its financial position and allow for strategic initiatives such as debt repayment and stock repurchase [1][5]. Group 1: Financial Transactions - The company received approximately $800 million in cash proceeds from the sale, net of working capital adjustments and transaction expenses [1]. - Following the sale, the company repaid $1 billion of outstanding borrowings under its term loan B facility [2]. - After the repayment, the company has approximately $480 million in outstanding debt and $680 million in unrestricted cash and cash equivalents [3]. Group 2: Stock Repurchase Program - The company's Board of Directors has authorized a new stock repurchase program of up to $200 million, which will be executed based on market conditions and other factors [4]. - The repurchase program replaces any unused portion of the prior stock repurchase program and does not require the company to acquire a specific number of shares [4]. Group 3: Corporate Changes - The company plans to change its corporate name back to "Callaway Golf Company" and will change its ticker symbol to "CALY" effective on or about January 16, 2026 [5].

Key Takeaways MODG drove high-teens traffic growth at Topgolf, pushing same-venue sales positive after several quarters.Value deals lifted visits without margin damage, as venue-level EBITDA margins held just above 33%.Repeat customers made up most traffic gains, supported by summer passes and the new PlayMore program.Topgolf Callaway Brands Corp. (MODG) delivered a meaningful inflection in its Topgolf business during third-quarter 2025, driven by a sharp acceleration in traffic tied to new value-focused in ...