Callaway Golf Company (CALY) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated net revenue was $1.11 billion, exceeding expectations, with adjusted EBITDA at $195.8 million; results were driven by strong Golf Equipment and Topgolf performance despite a 4.1% year-over-year decline due to the Jack Wolfskin sale.

• Sale of Jack Wolfskin completed for $290 million, boosting available liquidity by 48% to over $1.1 billion and enhancing business focus for the planned Topgolf separation.

• Segment operating income rose 2.7% in Q2, driven by cost reductions in Active Lifestyle, despite declines in Topgolf and Golf Equipment.

• The company is pursuing a strategic separation into two independent entities, with the Topgolf spin-off now likely in 2026 after leadership transition.

• Proactive cost and margin initiatives contributed to better-than-expected performance in a challenging environment.

Financial highlights

• Q2 2025 net revenues were $1,110.5 million, down 4.1% year-over-year, mainly due to the Jack Wolfskin sale and active lifestyle segment softness.

• Q2 adjusted EBITDA was $195.8 million, down 4.8% year-over-year, impacted by lower revenue, tariffs, and FX losses, partially offset by cost savings.

• GAAP net income for Q2 2025 was $20.3 million ($0.11/share), down from $62.1 million ($0.32/share) in Q2 2024, mainly due to higher tax provision and Jack Wolfskin sale loss.

• Non-GAAP net income for Q2 2025 was $45.6 million ($0.24/share), down 45% year-over-year.

• Cash and cash equivalents at June 30, 2025, were $683.8 million, up $233.5 million from year-end 2024, mainly from Jack Wolfskin sale proceeds.

Outlook and guidance

• Full-year 2025 revenue guidance (excluding Jack Wolfskin) raised to $3.80–$3.92 billion, up $30 million at midpoint; adjusted EBITDA guidance raised to $430–$490 million, up $25 million at midpoint.

• Topgolf full-year revenue guidance narrowed to $1.71–$1.77 billion; adjusted EBITDA guidance to $265–$295 million.

• Q3 2025 revenue forecasted at $880–$920 million; adjusted EBITDA at $78–$98 million.

• Free cash flow expected to be positive for both the total company and Topgolf in 2025.

• Topgolf separation expected in 2026, subject to market and regulatory conditions.