Topgolf Callaway Brands Corp. ( (MODG) ) has released its Q4 earnings. Here is a breakdown of the information Topgolf Callaway Brands Corp. presented to its investors.
Topgolf Callaway Brands Corp., a leader in the golf and active lifestyle industry, offers a diverse portfolio of golf equipment, apparel, and entertainment services, including its renowned Topgolf venues.
The company reported a 3% increase in net revenue for the fourth quarter of 2024, alongside a significant growth in Adjusted EBITDA, despite a substantial non-cash impairment charge that led to a GAAP net loss. The Callaway brand maintained its top market position in golf clubs and achieved record market share in golf balls.
Key financial highlights include a 45% rise in Adjusted EBITDA to $101.4 million, driven by strong performance in the Golf Equipment segment and improved profitability in Topgolf venues. Operating cash flow increased by 5% to $382 million, with Adjusted Free Cash Flow up by 27% to $203 million. However, the company faced a $1,452 million impairment charge related to Topgolf’s goodwill and intangible assets.
Looking ahead to 2025, Topgolf Callaway Brands is focused on enhancing same venue sales at Topgolf and continuing its strategic initiatives, despite facing challenges such as foreign currency exchange rates and cost pressures. The company remains confident in its ability to navigate these headwinds and deliver shareholder value through its strong brand presence and operational capabilities.