CARLSBAD, CA /August 6, 2025/ Topgolf Callaway Brands Corp. (the "Company" or "Topgolf Callaway Brands", "we", "our", "us") (NYSE: MODG) announced its financial results for the second quarter ended June 30, 2025. "We are pleased with our second quarter financial results as we met or beat expectations in all segments of our ongoing business and our consolidated revenue and Adjusted EBITDA surpassed our expectations going into the quarter," stated Chip Brewer, CEO of Topgolf Callaway Brands. "These results re ...

Core Insights - Topgolf Callaway Brands Corp. reported second quarter financial results for 2025, highlighting a decrease in net revenues but an increase in operational income, leading to an optimistic outlook for the remainder of the year [1][2][10]. Financial Performance - The company's net revenues for Q2 2025 were $1,110.5 million, a decrease of 4.1% year-over-year, primarily due to declines in the Active Lifestyle segment following the sale of the Jack Wolfskin business [3][6][10]. - Adjusted EBITDA for Q2 2025 was $195.8 million, down 4.8% from the previous year, reflecting ongoing cost-saving initiatives [8][10]. - Net income for Q2 2025 was $20.3 million, a significant decrease of 67.3% compared to the prior year, attributed to non-recurring charges and increased tax expenses [8][10]. Segment Performance - Topgolf segment revenues decreased by 1.8% to $485.3 million, while Golf Equipment revenues were relatively stable, decreasing by 0.5% to $411.6 million [11][16]. - The Active Lifestyle segment saw a more pronounced decline, with revenues dropping 14.4% to $213.6 million, largely due to the impact of the Jack Wolfskin sale [11][16]. Guidance and Outlook - The company updated its full-year 2025 guidance, raising the revenue midpoint by approximately $30 million and Adjusted EBITDA by about $25 million for its continuing businesses, reflecting better-than-expected second quarter performance [15][19]. - The full-year consolidated net revenue estimate is now projected to be between $3.80 billion and $3.92 billion, while Adjusted EBITDA is expected to range from $430 million to $490 million [19][21]. Leadership and Strategic Changes - The company announced the resignation of CEO Artie Starrs, who will assist with the transition until September 2025, as it continues to pursue a separation of its Topgolf and Core businesses [17][18]. - The sale of the Jack Wolfskin business has strengthened the company's liquidity position, increasing available liquidity by 48% year-over-year to over $1.1 billion [10][17].

Group 1 - Topgolf Callaway Brands Corp. announced the resignation of CEO Artie Starrs, who will assist with the transition until September 2025 [1] - The company is conducting an executive search for a replacement and confirmed that Starrs has accepted another CEO position with an undisclosed business [1][2] - The company expressed satisfaction with Topgolf's second quarter financial results and improving same venue sales trends, attributing this to significant actions taken earlier in the year [2] Group 2 - The departure of Artie Starrs is not expected to affect the company's strategic direction or commitment to separating Topgolf, with plans for a spin-off or sale still in pursuit [2] - It is likely that a spin-off transaction will not occur until 2026, after a new CEO is appointed [2]

Group 1 - Topgolf Callaway Brands Corp. plans to release its second quarter 2025 financial results on August 6, 2025, after market close [1] - A conference call will be held by the management team to review the results and discuss the company's business outlook at 2:00 p.m. Pacific Time [1] - A live webcast and presentation will be accessible through the Investor Relations section of the company's website [1] Group 2 - The company will participate in the Goldman Sachs 32nd Annual Global Retailing Conference on September 4, 2025, in New York City [2] - A live webcast and replay of the conference will also be available through the company's Investor Relations website [2] Group 3 - Topgolf Callaway Brands Corp. is a tech-enabled Modern Golf and active lifestyle company with a portfolio of global brands including Topgolf, Callaway Golf, and TravisMathew [3] - The company focuses on delivering leading golf equipment, apparel, and entertainment within a dynamic and inclusive ecosystem [3]

Group 1 - Topgolf is partnering with the upcoming film "Happy Gilmore 2" to create an exclusive promotional event where players can win limited-edition putters [1][2] - The event will take place on specific weekends, with only two putters available per Topgolf venue, making it a highly exclusive prize [1] - Topgolf aims to redefine the game of golf, making it more accessible and enjoyable for everyone, aligning with the cultural impact of the original "Happy Gilmore" film [2] Group 2 - Topgolf Callaway Brands Corp. operates over 100 venues globally, utilizing Toptracer technology to enhance the modern golfing experience [3] - The company offers a variety of tech-driven games, food and drink options, and event hosting spaces, promoting a vibrant atmosphere for play [3] - Topgolf Callaway Brands is recognized as a leader in the golf equipment and entertainment industry, with a diverse portfolio that includes several well-known brands [4] Group 3 - "Happy Gilmore 2" is set to be released on July 25, 2025, featuring a notable cast including Adam Sandler and various sports personalities [5] - The film is directed by Kyle Newacheck and produced by a team that includes Adam Sandler and Tim Herlihy, indicating a strong connection to the original film [5]

Group 1 - Topgolf is launching a unique summer internship called the "Dadternship," aimed at fathers who embody classic dad traits [1][4] - The company is installing regulation-size field goal posts at 50 venues across the U.S. in preparation for the 2025 fall football season [2][3][7] - The Dadternship offers a range of benefits, including a one-year Topgolf Platinum Membership, a $2,000 gift card, and an exclusive behind-the-scenes tour [6] Group 2 - Topgolf's CEO, Artie Starrs, emphasizes the excitement of blending golf with football, highlighting the thrill of testing accuracy with the new field goal posts [7] - The company operates over 100 venues globally, utilizing advanced Toptracer technology to enhance the golfing experience [8] - Topgolf Callaway Brands Corp. is recognized as a leader in the modern golf and active lifestyle sector, offering a diverse portfolio of brands and products [9]

Product Launch and Market Impact - Odyssey has maintained its position as the 1 putter for over 25 years across all major worldwide tours, with the updated Hockey Stick model featuring enhanced design and technologies [1] - Callaway's Chrome Tour Golf Ball family has achieved significant success, including 4 major wins, supported by an investment exceeding $100 million in its manufacturing plant [2] - The new Happy Gilmore 2-inspired products, including Limited Edition Odyssey Hockey Stick Putters priced at $499.99 and Chrome Tour Balls at $59.99 per dozen, will be available at Callaway retailers starting July 11th and July 25th respectively [3] Company Overview - Callaway Golf, a brand under Topgolf Callaway Brands Corp. (NYSE: MODG), is recognized as a leading manufacturer of premium golf equipment and accessories, emphasizing innovation to enhance golfer performance [4]

Group 1: Company Overview - Topgolf Callaway Brands Corp. (NYSE: MODG) is a tech-enabled modern golf and active lifestyle company with a diverse portfolio including Topgolf, Callaway Golf, TravisMathew, Odyssey, and OGIO [6] - Topgolf operates over 100 venues globally, utilizing industry-leading Toptracer technology to enhance the golfing experience [5] Group 2: Recent Promotions and Events - Topgolf is hosting a Marvel Studios-themed event titled "The Fantastic Four: First Steps," running from June 30 to September 15, 2025, where groups of four or more can receive a free order of donut holes-in-one [1] - The company is offering various limited-time menu items, including frozen cocktails and $5 beers, aimed at providing value to customers [3][2] Group 3: Strategic Partnerships - Topgolf's collaboration with Marvel Studios aims to deepen connections with fans and enhance the entertainment experience, marking the second partnership following the success of "Captain America: Brave New World" [4]

Core Viewpoint - The upcoming earnings season presents potential short-term trading opportunities in consumer discretionary stocks, despite the traditionally lower trading volumes in summer [1] Group 1: Topgolf Callaway Brands Corp. (MODG) - MODG stock has declined nearly 80% since peaking at approximately $37 in late 2021, currently priced at $7.82 with a 12-month price forecast of $10.30, indicating a potential upside of 31.80% [4][7] - The company plans to spin off about 80% of its Topgolf business in 2025, which may enhance the performance of both Topgolf and Callaway as separate entities [6] - Recent insider buying by director Adebayo O Ogunlesi suggests confidence in the stock's undervaluation, supported by bullish analyst sentiment [3][6] Group 2: Traeger Inc. (COOK) - COOK stock is currently priced at $1.77, with a 12-month price forecast of $2.44, indicating a potential upside of 38.10% [8] - The stock has decreased by 29% over the past year and 25% in 2025, with the company facing challenges due to high interest rates and inflation [10] - Despite being unprofitable and having net debt of $410 million, Traeger has shown expanding net margins and raised its full-year revenue and earnings guidance [10] Group 3: 1-800-FLOWERS.COM Inc. (FLWS) - FLWS stock is currently priced at $5.10, with a 12-month price forecast of $7.50, indicating a potential upside of 47.06% [12] - The stock has declined by 36.9% in 2025 and faces strong competition, but the company is investing in artificial intelligence to enhance marketing and fulfillment [12][13] - Major shareholder Fund 1 Investments has made multiple stock purchases, indicating confidence in the company's potential turnaround [13]

Core Viewpoint - Topgolf Callaway's shares surged 11.3% following the disclosure of significant insider buying, suggesting potential investor confidence in the stock's recovery after a substantial decline over the past year [1]. Group 1: Insider Buying - Director Adebayo Ogunlesi purchased 383,701 shares of Topgolf Callaway at an average price of $6.47 per share, totaling approximately $2.5 million [2]. - Ogunlesi's purchase occurred between June 4 and 5, indicating a strategic move to acquire discounted shares amid a challenging market environment [2]. Group 2: Company Performance and Outlook - The stock has decreased by 50% over the past year and is down 83% from its all-time highs in 2021, leading investors to view the insider purchase as a potential signal that the stock may be bottoming out [1]. - High inflation has negatively impacted demand at Topgolf, but there are indications that inflation may be easing, which could improve the company's performance [4]. - Topgolf and Callaway are planning to split the company, with a spin-off of 80.1% of Topgolf expected in late 2025, which may enhance the financial prospects for both entities as independent companies [4]. Group 3: Historical Context and Caution - Ogunlesi has been a board member since 2010 and was involved in the decision to acquire Topgolf, which is now being reversed [7]. - His previous share purchase in June 2023 was followed by a 60% decline in share value, highlighting the need for investors to conduct their own research rather than solely relying on insider actions [7].