TOPGOLF CALLAWAY BRANDS ANNOUNCES SECOND QUARTER 2025 RESULTS

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].