Callaway Golf Company (CALY) Q3 2026 earnings summary

Executive summary

• Q3 net sales fell 5.6% to $436.9M, while Adjusted EBITDA rose 17.3% to $35.9M; FY26 net sales and Adjusted EBITDA guidance increased.

• Strategic divestitures refocused the business on golf, strengthened the balance sheet and supported profitability and shareholder returns.

Financial highlights

• Q3 GAAP operating income was $44.7M vs. $4.8M; continuing-operations net income was $48.1M vs. a $4.1M loss. Results included tariff-refund benefits and a Full Swing investment gain.

• Q3 non-GAAP continuing-operations net income was $22.9M vs. an $11.1M loss; diluted EPS was $0.12 vs. a $0.06 loss.

• 9M sales rose 2.6% to $1,736.6M; Adjusted EBITDA increased 31.1% to $324.5M, and non-GAAP diluted EPS was $1.10 vs. $0.45.

• 9M GAAP operating income was $297.7M vs. $182.2M; continuing-operations net income was $198.8M vs. $104.8M.

• Q3 non-GAAP gross margin was 45.0%, up 520 bps; 9M non-GAAP gross margin was 47.3%, up 410 bps.

Outlook and guidance

• FY26 net sales guidance increased to $2.065B–$2.078B from $2.045B–$2.070B; midpoint rose $14M.

• FY26 Adjusted EBITDA guidance increased to $272M–$280M from $246M–$260M; midpoint rose $23M.

• Q4 net sales guidance is $328M–$341M vs. $368M; Adjusted EBITDA is a loss of $53M–$45M vs. a $25M loss in Q4 2025.

• Q4 outlook reflects shifted launch timing, lower-margin product rationalization, fitting investment and reduced dividend income; FY26 capex is estimated at $40M.