CALLAWAY GOLF COMPANY ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Core Insights - Callaway Golf Company reported that its fourth quarter and full year 2025 net revenue and adjusted EBITDA exceeded expectations, with guidance for 2026 revenue set between $1.98 billion to $2.05 billion and adjusted EBITDA between $170 million to $195 million [1][2] Financial Performance - For Q4 2025, net sales were $367.5 million, a decrease of 1.1% from $371.4 million in Q4 2024, primarily due to lower sales in Golf Equipment [1][2] - Full year 2025 net sales totaled $2,060.1 million, down 0.8% from $2,077.7 million in 2024, with Golf Equipment sales approximately flat and a decline in the Soft Goods segment [2][5] - The company reported a GAAP net loss from continuing operations of $66.0 million for Q4 2025, compared to a loss of $93.9 million in Q4 2024, and a net income of $38.8 million for the full year 2025 [1][2] Segment Performance - Golf Equipment segment net sales for Q4 2025 were $213.9 million, down 4.9% from $224.9 million in Q4 2024, while Apparel, Gear, and Other segment sales increased by 4.8% [5][6] - For the full year 2025, Golf Equipment segment sales were $1,375.1 million, a slight decrease of 0.5% from $1,382.7 million in 2024, while the Apparel, Gear, and Other segment saw a decline of 1.4% [5][6] Strategic Initiatives - The company has returned to being a pure-play golf equipment company after divesting its Jack Wolfskin business and a 60% stake in Topgolf, resulting in a net cash position of approximately $680 million and $480 million in gross debt [1][2] - Callaway plans to utilize its cash reserves to pay off convertible debt and initiate a $200 million share repurchase program [1][2] Outlook - The company expects to maintain a net cash position with zero net leverage through 2026, planning to pay off $258 million of convertible notes upon maturity in May 2026 [2][5] - For Q1 2026, consolidated net sales are estimated to be between $635 million to $665 million, with adjusted EBITDA expected between $110 million to $125 million [2][5]