Callaway Golf Company (CALY) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue from ongoing business (excluding Jack Wolfskin) grew 3% year-over-year, with both net revenue and adjusted EBITDA exceeding guidance.

• Topgolf same venue sales turned positive in Q3, and liquidity increased by $391 million year-over-year to $1,254 million.

• The company raised its full-year 2025 revenue and adjusted EBITDA guidance for both the total company and Topgolf.

• Announced intent to separate into two independent companies: a golf equipment/active lifestyle business and a pure-play Topgolf venue business, with the spin-off likely in 2026 pending market and leadership conditions.

• Completed the sale of Jack Wolfskin in May 2025 for approximately $290 million, focusing resources on core operations.

Financial highlights

• Q3 2025 net revenues were $934 million, down 7.8% year-over-year due to the Jack Wolfskin divestiture; ongoing business revenue increased 3%.

• Q3 adjusted EBITDA was $114.4 million, down $5.4 million year-over-year, mainly due to $12 million in incremental tariffs.

• Q3 2025 net loss was $14.7 million (GAAP), with diluted loss per share of $0.08; non-GAAP net loss was $9.2 million.

• Segment operating income for Q3 2025: Topgolf $31.1M (+9.9%), Golf Equipment $23.2M (-13.4%), Active Lifestyle $13.7M (-29.4%).

• Available liquidity at quarter-end was $1,254.2 million, up $391.2 million year-over-year.

Outlook and guidance

• Full-year 2025 consolidated revenue guidance raised to $3.90–$3.94 billion; adjusted EBITDA guidance raised to $490–$510 million.

• Topgolf full-year revenue guidance increased to $1.77–$1.79 billion; adjusted EBITDA guidance to $295–$305 million.

• Q4 2025 revenue expected at $763–$803 million, with adjusted EBITDA of $13–$33 million.

• Management expects the planned separation of Topgolf to be completed in 2026, subject to market and leadership conditions.

• Capital expenditures for 2025 are expected to be approximately $160 million, with $120 million allocated to Topgolf.