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 [19][20] - Q3 adjusted EBITDA was $115 million, a decrease of $4 million year-over-year, primarily due to $12 million in incremental tariffs [19][20] - The company raised its full-year 2025 revenue guidance to a range of $3.90 to $3.94 billion, up $60 million at the midpoint [22][23] Business Line Data and Key Metrics Changes - Golf equipment revenue increased 4% year-over-year to $305 million, with a 4% increase in golf clubs and a 6% increase in golf balls [20] - Topgolf revenue increased 4% year-over-year to $472 million, driven by the addition of six new venues and a 1% increase in same-venue sales [20] - Active lifestyle segment revenue was approximately flat at $156 million, with operating income down due to tariffs [10][20] 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 [5][6] - Rounds played are up 1.4% year-to-date, indicating strong participation in the sport [6] - Market conditions in Europe and the UK are positive, while Japan and Korea are experiencing declines [6] Company Strategy and Development Direction - The company is focused on delivering "demonstrably superior and pleasingly different" products to enhance pricing power and market share [8][11] - Continued emphasis on value initiatives at Topgolf, including promotions like Sunday Funday and half-off golf, has driven traffic growth [12][13] - The company is committed to the separation of Topgolf and is actively evaluating strategic alternatives [18][40] 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 and positive trends observed in October [4][18] - The company anticipates challenges from ongoing tariffs but is implementing cost management initiatives to mitigate impacts [11][23] - Management noted that consumer engagement in golf remains strong, with positive trends in both participation and sell-through [33][37] Other Important Information - The company experienced an incremental tariff expense of $12 million in Q3, with a forecast of approximately $40 million for the full year [10][20] - The company implemented a reduction in force of about 300 positions as part of cost management efforts [11] - New venues for Topgolf continue to open successfully, with four new venues planned for the year [17] Q&A Session Summary Question: Pricing power on golf equipment given strong demand - Management indicated that pricing power is dependent on product differentiation and will consider strategic pricing adjustments to mitigate tariff impacts [28][29] 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 increased visitation [30][31] Question: Sell-through trends and consumer behavior changes - Management noted strong sell-through trends, with higher engagement from consumers and a positive outlook for the upcoming product launches [32][33] Question: Visibility on corporate event bookings for Q4 - Management confirmed reasonable visibility on corporate event bookings, with over half booked 30 days out [44] Question: Update on CEO search and its impact on separation timing - Management stated that the CEO search is ongoing, and while timing for separation is uncertain, the existing team is performing well [48][49]