Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were $934 million, a 3% increase year-over-year, driven by growth in both Topgolf and golf equipment segments [23][24] - Q3 adjusted EBITDA was $115 million, a decrease of $4 million year-over-year, primarily due to $12 million in incremental tariffs [23][24] - Net debt decreased to $2.23 billion from $2.54 billion year-over-year, attributed to increased cash [25][26] Business Line Data and Key Metrics Changes - Golf equipment segment revenue increased 4% year-over-year to $305 million, with golf clubs up 4% and golf balls up 6% [24] - Active lifestyle segment revenue was approximately flat at $156 million, with operating income down due to tariffs [12][24] - Topgolf revenue increased 4% to $472 million, driven by the addition of six new venues and a 1% increase in same-venue sales [24][27] Market Data and Key Metrics Changes - The US golf market is up 2% year-to-date, with mid-single-digit growth in sell-through reports [7][8] - Participation in golf remains strong, with rounds played up 1.4% year-to-date [8] - Market share in golf balls reached an all-time high of 22.6% in August across both on- and off-course channels [8] Company Strategy and Development Direction - The company is focused on delivering "demonstrably superior and pleasingly different" products to enhance pricing power and market share [10][14] - Continued emphasis on value initiatives at Topgolf, including new pricing strategies and marketing optimization [15][16] - The company is committed to the separation of Topgolf and is actively evaluating strategic alternatives [20][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and raised full-year guidance based on strong Q3 performance [5][20] - The company anticipates ongoing challenges from tariffs but is implementing cost management initiatives to mitigate impacts [13][31] - Positive trends in consumer engagement and traffic growth at Topgolf are expected to continue into Q4 [15][60] Other Important Information - The company implemented a reduction in force of about 300 positions to manage costs effectively [13] - New venues for Topgolf are on track, with four openings planned for the year [19] - The company is optimistic about the impact of new technology and innovations on product performance [9][10] Q&A Session Summary Question: Pricing power on golf equipment due to strong demand - Management indicated that pricing power is dependent on product differentiation and will consider strategic pricing adjustments to mitigate tariff impacts [34][36] Question: Trends in Topgolf visitation and food and beverage sales - Management reported strong traffic growth and positive trends in food and beverage sales, driven by new offerings and value initiatives [37][41] Question: Sell-through trends and consumer behavior changes - Management noted strong sell-through trends and consumer engagement, with a positive outlook for the golf segment [44][46] Question: Visibility on corporate event bookings for Q4 - Management has reasonable visibility on corporate event bookings, with over half booked 30 days out [76] Question: Update on CEO search and its impact on separation timing - Management is encouraged by the quality of candidates for the CEO position and is confident in the existing team's performance during the transition [88][90] Question: Expectations for tariffs in 2026 - Management indicated that if current tariff rates hold, the impact could be more than double that of 2025 [90]