TOPGOLF CALLAWAY BRANDS ANNOUNCES THIRD QUARTER 2025 RESULTS

Core Insights - Topgolf Callaway Brands Corp. reported strong third-quarter results, with revenue and Adjusted EBITDA exceeding expectations, driven by robust performance in the Golf Equipment segment and positive same venue sales growth in Topgolf [2][8][10] - The company raised its full-year 2025 financial guidance based on current business trends and improved outlook [2][19] Consolidated Results - For Q3 2025, net revenues were $934.0 million, a decrease of 7.8% from $1,012.9 million in Q3 2024. For the nine months ended September 30, 2025, net revenues were $3,136.8 million, down 5.4% from $3,314.9 million in the same period of 2024 [3][10] - Income from operations for Q3 2025 was $28.3 million, down 16.0% from $33.7 million in Q3 2024. For the nine months, it decreased slightly to $200.6 million from $203.6 million [3][11] - The net loss for Q3 2025 was $14.7 million, compared to a loss of $3.6 million in Q3 2024. The loss per share was $(0.08) for Q3 2025, compared to $(0.02) in Q3 2024 [3][11] Non-GAAP Results - Non-GAAP income from operations for Q3 2025 was $35.3 million, down 17.9% from $43.0 million in Q3 2024. For the nine months, it increased to $244.3 million from $237.4 million [4][10] - Non-GAAP net loss for Q3 2025 was $9.2 million, compared to a profit of $4.3 million in Q3 2024. Non-GAAP loss per share was $(0.05) for Q3 2025, compared to $0.02 in Q3 2024 [4][10] Segment Results - Topgolf segment revenue increased by 4.2% to $472.2 million in Q3 2025, while Golf Equipment revenue rose by 4.0% to $305.3 million. Active Lifestyle segment revenue decreased by 41.2% to $156.5 million [13][16] - Topgolf operating income for Q3 2025 was $31.1 million, up 9.9% year-over-year, while Golf Equipment operating income decreased to $23.2 million, down 13.4% [14][16] Financial Outlook - The company raised its full-year 2025 revenue guidance to a range of $3.90 billion to $3.94 billion and Adjusted EBITDA guidance to $490 million to $510 million, reflecting better-than-expected Q3 results and improved outlook [19][20] - Topgolf's full-year revenue guidance was revised to a range of $1.77 billion to $1.79 billion, with same venue sales expected to decline in the mid-single digits [19][20] Balance Sheet and Cash Flow - Company liquidity increased by $391 million year-over-year to $1,254 million, primarily due to cash proceeds from the sale of Jack Wolfskin and cash from operations [8][24] - Inventory decreased by $97.7 million year-over-year to $568.7 million, largely due to the sale of Jack Wolfskin [24]