Core Insights - Topgolf Callaway Brands' stock experienced a surge following a significant share purchase by corporate director Adebayo Ogunlesi, who bought approximately $2.5 million worth of shares [1] - Ogunlesi's purchase is perceived as a vote of confidence in the company, especially given his notable background in the finance sector [1][2] - The stock has faced challenges, with a decline of 9% in 2025 and over 50% in the past year, indicating a negative return since the acquisition announcement in October 2020 [3] Company Background - Adebayo Ogunlesi is the founding partner and CEO of Global Infrastructure Partners, which was acquired by BlackRock in a $12 billion deal last year [2] - Following the acquisition, Ogunlesi joined BlackRock's board and also became a member of the OpenAI board in January [2] Stock Performance - Ogunlesi's recent purchase marks his first acquisition of Topgolf Callaway stock since June 2023, during which shares have dropped about 60% [3] - The overall performance of Topgolf Callaway's stock has been negative since the announcement of its acquisition by Callaway [3]

Core Insights - Topgolf has broken ground on a new three-level venue in Parsippany, New Jersey, expected to open in summer 2026, marking its third location in the state [1][5] - The new venue will feature 102 outdoor climate-controlled hitting bays, equipped with Toptracer technology, and will employ approximately 350-400 staff members [5] Company Overview - Topgolf is a brand under Topgolf Callaway Brands Corp. (NYSE: MODG), known for its tech-driven modern golf experiences and a variety of entertainment options [4][5] - The company operates over 100 venues globally, offering a mix of golf, dining, and entertainment in a relaxed environment [4][5] Venue Features - The Parsippany location will include a full-service restaurant and bar, over 140 HDTVs, fire pits, and year-round family-friendly programming [5] - A private event space and rooftop terrace will be available for various gatherings, enhancing the venue's appeal for social events [5] Community Impact - Local officials express enthusiasm for Topgolf's arrival, highlighting its potential to boost the local economy and create jobs [5] - The venue is expected to enhance Parsippany's entertainment offerings and contribute to community growth [5]

Core Insights - Topgolf aims to provide affordable and enjoyable golfing experiences for all players, enhancing accessibility during uncertain economic times [1] - The company is implementing various promotional offers to attract customers, including discounted game play and affordable food and beverage options [1][2] Promotions and Offers - **Half-Off Golf**: 50% discount on golf from Monday to Thursday during summer, starting June 9, applicable at all U.S. venues except Myrtle Beach [2] - **Sunday Funday**: Family-friendly game play priced between $30-$40 per hour, with special food offerings like the Funday Faves Platter [3] - **Topgolf Nights**: Game play available for $30-$40 per hour from 10 p.m. to close on Fridays and Saturdays [4] - **Summer Fun Pass**: An all-access pass for $250 allowing unlimited game play for the passholder and five friends, with additional discounts on food and beverages [5] Menu and Experience Enhancements - Introduction of summer-themed menu items, including frozen cocktails and novelty cold treats, with market-dependent pricing for beers and margaritas [6] - A new in-venue experience inspired by Marvel Studios' "The Fantastic Four," available from June 30 to September 15, offering a free treat for groups [7] Advertising and Brand Positioning - Launch of the "You're Better Off at Topgolf" advertising campaign on June 9, emphasizing the balance of value and premium experiences [8][9] - Topgolf positions itself as a leader in modern golf entertainment, leveraging technology and a diverse range of offerings to attract a wide audience [11][12]

Core Insights - Topgolf Callaway Brands Corp. has successfully completed the sale of its Jack Wolfskin business to ANTA Sports for $290 million, subject to customary closing adjustments [1][2] - The transaction, effective May 31, 2025, marks a significant milestone for the company as it refocuses on its core businesses and enhances financial flexibility ahead of the planned separation of Topgolf from its core operations [2][3] - The President and CEO of Topgolf Callaway Brands expressed confidence in ANTA Sports to maintain the integrity of the Jack Wolfskin brand and acknowledged the contributions of Jack Wolfskin employees [3] Company Overview - Topgolf Callaway Brands Corp. is a tech-enabled Modern Golf and active lifestyle company, offering golf equipment, apparel, and entertainment, with a portfolio that includes Topgolf, Callaway Golf, TravisMathew, Odyssey, and OGIO [4]

Core Insights - Topgolf Callaway Brands Corp. (MODG) reported first-quarter 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, although total revenues declined year over year by 4.5% [1][4] - The company is divesting its Jack Wolfskin business to focus on core operations, improve resource allocation, and strengthen its balance sheet and liquidity [2] - Management remains optimistic about maintaining full-year revenue and adjusted EBITDA guidance, supported by a strong start to the year and favorable currency trends [3] Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 was 11 cents, surpassing the Zacks Consensus Estimate of 4 cents, compared to 8 cents in the prior-year quarter [4] - Total revenues reached $1.09 billion, beating the consensus estimate by 3.1% [4] - Adjusted net income for the quarter was $20.3 million, up from $14.4 million in the prior-year quarter [8] Segment Performance - **Topgolf Segment**: Revenues were $393.7 million, down 6.8% from $422.8 million year-over-year, with an operating loss of $11.9 million compared to an income of $2.9 million in the prior-year quarter [5] - **Golf Equipment Segment**: Revenues were $443.7 million, a slight decline of 0.3% from $449.9 million year-over-year, with operating income increasing to $101.6 million from $82.1 million [6] - **Active Lifestyle Segment**: Revenues were $254.9 million, down 4.7% from $271.5 million year-over-year, attributed to the downsizing of the Jack Wolfskin business, though partially offset by growth in China [7] Cost Management and Outlook - Total costs and expenses for Q1 2025 were $1.03 billion, down from $1.08 billion in the prior-year period [8] - For Q2 2025, the company expects revenues between $1.075 billion and $1.115 billion, with adjusted EBITDA projected between $139 million and $159 million [11] - For the full year 2025, revenues are anticipated to be in the range of $4 billion to $4.19 billion, with Topgolf revenues expected between $1.68 billion and $1.79 billion [12]

I am an avid investor with a major focus on small cap companies with experience in investing in US, Canadian, and European markets. My investment philosophy to generating great returns on the stock market revolves around identifying mispriced securities by understanding the drivers behind a company's financials, and ultimately, most often revealed by a DCF model valuation. This methodology doesn't limit an investor into rigid traditional value, dividend, or growth investing, but rather accounts for all of a ...

Topgolf Callaway Brands (MODG) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 375%. A quarter ago, it was expected that this maker of golf equipment and accessories would post a loss of $0.40 per share when it actually produced a loss of $0.33, delivering a surprise of 17.5 ...

Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2025 were $1,090 million, a decrease of 5% year over year, primarily due to lower Topgolf same venue sales and unfavorable foreign currency rates [42][43] - Q1 adjusted EBITDA increased by 4% to $167 million, driven by improved profitability in the golf equipment and active lifestyle segments [42] - Available liquidity increased by $85 million to $805 million as of March 31, 2025, compared to Q1 2024 [45] Business Line Data and Key Metrics Changes - Topgolf Q1 revenue decreased by 7% year over year due to lower same venue sales and the sale of the World Golf Tour business [43] - Golf equipment revenue decreased by 1% to $444 million, but operating income increased by 24% to $102 million due to improved gross margins and cost savings [44] - Active lifestyle segment revenue decreased by $17 million to $255 million, primarily due to the planned rightsizing of the Jack Wolfskin business [44] Market Data and Key Metrics Changes - U.S. rounds played were up 3.8% in March, but down slightly year to date, reflecting weather impacts [15] - Same venue sales at Topgolf were down approximately 12% for Q1, with corporate events down 13% [27] - Overall traffic in the second quarter through April was approximately flat year over year, with one to two bay traffic up low single digits [29] Company Strategy and Development Direction - The company announced the sale of Jack Wolfskin to ANTA Sports, allowing for greater business focus and financial flexibility [8] - Topgolf is implementing a strategic reset to improve value perception while maintaining a premium brand image, with initiatives like Sunday Funday and Topgolf Nights aimed at driving traffic [20][21] - The company is committed to separating Topgolf from its core business to unlock shareholder value, with various alternatives being evaluated [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about a price-sensitive consumer environment and the impact of corporate spending pressures on the events business [30][58] - The company remains optimistic about the golf equipment segment, noting strong consumer demand and market conditions [57] - Future guidance for Topgolf same venue sales has been revised to a decline of 6% to 12%, reflecting economic uncertainty [51] Other Important Information - The company expects to maintain its full-year adjusted EBITDA guidance for Topgolf despite anticipated revenue declines [51] - Tariff impacts are projected to be approximately $25 million for the year, with the company taking proactive measures to mitigate these costs [9][52] Q&A Session Summary Question: Any change in the industry backdrop for the core golf equipment business? - Management indicated no significant changes, with strong consumer demand and a positive outlook for the golf business [57] Question: How much of the softness in Topgolf is attributed to macro factors versus competition? - Management noted that corporate spending pressure is a direct macro impact, while the consumer remains price-sensitive [58] Question: What are the plans for managing venue-level cost structures going forward? - Management expressed confidence in long-term venue margins, emphasizing ongoing investments in value and efficiency improvements [66] Question: Was there any impact from the Easter shift on business performance? - Management acknowledged a shift but did not consider it material to their guidance [69] Question: What are the specifics of the cost savings achieved? - Management stated that proactive cost savings have been implemented across all areas of the business, benefiting overall performance [75] Question: How is the value proposition being adjusted for the events business? - Management is offering more local flexibility and incentives to win sales, while maintaining the premium nature of the product [100]

Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2025 were $1,090 million, a decrease of 5% year over year, primarily due to lower Topgolf same venue sales and unfavorable foreign currency rates [40] - Q1 adjusted EBITDA increased by 4% to $167 million, driven by improved profitability in the golf equipment and active lifestyle segments [40] - Available liquidity increased by $85 million to $805 million as of March 31, 2025, due to increased cash compared to Q1 2024 [43] Business Line Data and Key Metrics Changes - Topgolf Q1 revenue decreased by 7% year over year, attributed to lower same venue sales and the sale of the World Golf Tour business [41] - Golf equipment revenue decreased by 1% to $444 million, but operating income increased by 24% to $102 million due to improved gross margins and cost savings [42] - Active Lifestyle segment revenue decreased by $17 million to $255 million, primarily due to the planned rightsizing of the Jack Wolfskin business [42] Market Data and Key Metrics Changes - U.S. rounds played were up 3.8% in March, but down slightly year to date, reflecting weather impacts [15] - Same venue sales at Topgolf were down approximately 12% for Q1, with corporate events down 13% [26] - The consumer base for Topgolf has an average income of approximately $100,000, indicating a relatively affluent target market [18] Company Strategy and Development Direction - The company announced the sale of Jack Wolfskin to ANTA Sports, allowing for greater business focus and financial flexibility [7] - Topgolf is implementing strategic initiatives to reset its value perception while maintaining a premium brand image [19] - The company is actively pursuing various alternatives for the separation of Topgolf, including a sale or spin-off, targeting the second half of the year for completion [45][46] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the demand side due to a slowing consumer environment, but noted that golf equipment has historically been resilient during mild recessions [10] - The company is optimistic about its ability to navigate current macroeconomic challenges, including tariffs and consumer spending pressures [50] - Management maintained full-year guidance despite the anticipated impact of the Jack Wolfskin sale and current tariffs [49] Other Important Information - The company expects to see a decline in Topgolf same venue sales guidance to down 6% to 12% for the year [22] - Adjusted EBITDA guidance for Topgolf remains at $240 million to $300 million, supported by ongoing cost savings initiatives [49] - The company is testing new value offerings and enhancing customer experience to drive traffic growth [34] Q&A Session Summary Question: Any change in the industry backdrop for the core golf equipment business? - Management noted that the golf consumer remains strong, and the outlook for the golf business is positive with no material changes [56] Question: How much do you attribute the softening at Topgolf to macro factors versus competition? - Management indicated that corporate spending pressure is a direct macro impact, while the consumer remains price sensitive [58] Question: How do you plan to manage venue-level cost structure going forward? - Management expressed confidence in long-term venue margins, emphasizing ongoing investments in value while maintaining player experience [66] Question: What is the impact of the Easter shift on business? - Management acknowledged a shift in events due to Easter but did not consider it material to their guidance [69] Question: Can you provide an update on cost savings and their impact? - Management confirmed that proactive cost savings have been beneficial, allowing them to hold guidance despite challenges [72] Question: How much of the Topgolf same venue sales reduction was due to April trends? - Management stated that the primary driver was the outlook on events, with improved traffic trends in the walk-in business [81] Question: Is there a value orientation program for the events business? - Management is offering more local flexibility in the events business to compete effectively, but noted that corporate spending is currently under pressure [99]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period to Commission file number 001-10962 Topgolf Callaway Brands Corp. (Exact name of registrant as specified in its charter) Delaware 95-3797580 (State or other jurisdiction of in ...