Topgolf Callaway Brands Corp. ( (MODG) ) has released its Q2 earnings. Here is a breakdown of the information Topgolf Callaway Brands Corp. presented to its investors.
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Topgolf Callaway Brands Corp. is a tech-enabled company specializing in modern golf and active lifestyle products, including golf equipment, apparel, and entertainment services, with a portfolio of global brands such as Topgolf and Callaway Golf. In its latest earnings report for the second quarter of 2025, Topgolf Callaway Brands announced a consolidated net revenue of $1,111 million, exceeding expectations, and raised its full-year guidance. The company also completed the sale of Jack Wolfskin, which significantly improved its liquidity position.
The company’s financial performance was driven by strong consumer demand in its golf equipment segment and successful cost-saving initiatives. Despite a 4.1% decrease in net revenues due to the sale of Jack Wolfskin, the Topgolf and Golf Equipment segments performed better than anticipated. The company reported a GAAP income from operations increase to $105.8 million, while non-GAAP income from operations remained stable year-over-year.
Net income on a GAAP basis fell to $20.3 million, a 67.3% decrease from the previous year, primarily due to non-recurring charges from the Jack Wolfskin sale and increased foreign currency hedge losses. Adjusted EBITDA was $195.8 million, a slight decrease of 4.8%. The company also announced a leadership change at Topgolf, with the resignation of CEO Artie Starrs, and plans for a potential spin-off of the Topgolf business in 2026.
Looking ahead, Topgolf Callaway Brands has updated its guidance to reflect the exclusion of Jack Wolfskin and has raised its financial outlook for the year. The company anticipates improved performance in its continuing businesses and has increased its revenue and Adjusted EBITDA guidance. Despite challenges, the company remains optimistic about its strategic initiatives and market position.