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]

Accessibility StatementSkip Navigation RAISES FULL YEAR 2025 GUIDANCE HIGHLIGHTS CARLSBAD, Calif., Nov. 6, 2025 /PRNewswire/ -- Topgolf Callaway Brands Corp. (the "Company" or "Topgolf Callaway Brands," "we," "our," "us") (NYSE: MODG) announced its financial results for the third quarter ended September 30, 2025. "We are pleased with our third quarter results, with both revenue and Adjusted EBITDA exceeding our expectations," commented Chip Brewer, President and Chief Executive Officer of Topgolf Callaway B ...

Third Quarter 2025 Earnings Call November 5, 2025 NON-GAAP FINANCIAL MEASURES DISCLAIMERS This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles ("GAAP") such as Adjusted EBITDA, Adjusted EBITDA margin, net leverage ratio and net sales in constant currency. These non-GAAP financial measures are not measures of financial performance derived in accordance with GAAP and may exclude items that are significant to understanding and assessing ...

Financial Performance - Q2 2025 - Net sales reached $720.5 million, a 5.4% year-over-year increase, or 4.7% on a constant currency basis[9] - Golf Balls net sales were $262.2 million, up 5.9% year-over-year, or 5.4% on a constant currency basis[9] - Golf Clubs net sales increased to $191.6 million, a 7.9% year-over-year increase, or 7.0% on a constant currency basis[9] - Adjusted EBITDA was $143.1 million, a 9.2% increase compared to the previous year[9] - Adjusted EBITDA margin was 19.9% compared to 19.2% in the prior year[19] Financial Performance - H1 2025 - Net sales totaled $1,423.8 million, a 2.3% year-over-year increase, or 2.9% on a constant currency basis[9] - Golf Balls net sales were $475.5 million, up 4.4% year-over-year, or 4.7% on a constant currency basis[9] - Golf Clubs net sales increased to $399.4 million, a 4.7% year-over-year increase, or 5.2% on a constant currency basis[9] - Adjusted EBITDA was $282.0 million, a decrease of 0.9% compared to the previous year[9] - Adjusted EBITDA margin was 19.8% compared to 20.5% in the prior year[19] Regional Performance - Q2 2025 - United States net sales were $434.5 million, up 6.4% year-over-year[10] - EMEA net sales were $98.6 million, up 13.7% year-over-year, or 8.0% on a constant currency basis[10] Outlook - The company expects 2025 second half sales to increase low-single digits when compared to 2024[21]

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].

Core Viewpoint - Topgolf Callaway Brands (MODG) is expected to report a quarterly loss of $0.04 per share, a decline of 144.4% year-over-year, with revenues projected at $1.06 billion, down 7.4% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 3% lower in the last 30 days, indicating a collective reevaluation by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts forecast 'Net Revenues by Category- Gear, Accessories & Other' to reach $108.97 million, reflecting a year-over-year decrease of 2.6% [5]. - 'Net Revenues by Category- Apparel' is expected to be $156.51 million, indicating a decline of 1.9% year-over-year [5]. - 'Net Revenues by Category- Venues' is projected at $379.66 million, down 6.4% from the prior year [5]. - 'Net Revenues- Topgolf' is estimated to be $396.01 million, a decrease of 6.3% from the year-ago quarter [6]. - 'Net Revenues- Golf Equipment' is expected to reach $444.44 million, reflecting a year-over-year change of -1.2% [6]. - 'Net Revenues- Active Lifestyle' is projected at $265.76 million, down 2.1% from the previous year [7]. - 'Net Revenues by Category- Golf Balls' is expected to be $98.92 million, indicating a decline of 4.9% year-over-year [7]. - 'Net Revenues by Category- Golf Clubs' is projected at $345.27 million, a slight decrease of 0.2% from the prior year [8]. - 'Net Revenues- Services' is estimated at $392.88 million, reflecting a year-over-year change of -6% [8]. - 'Net Revenues- Products' is expected to reach $689.28 million, indicating a decline of 5.1% year-over-year [8]. Operating Income - The consensus estimate for 'Operating income (loss)- Golf Equipment' stands at $76.50 million, compared to $82.10 million from the previous year [9]. Stock Performance - Over the past month, shares of Topgolf Callaway have returned +9.9%, while the Zacks S&P 500 composite has changed by +11.3% [9].