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].