Callaway Golf Company (CALY) Q4 2024 earnings summary

Executive summary

• Q4 2024 consolidated net revenue grew 3% year-over-year to $924.4M, with adjusted EBITDA up 45% to $101.4M, both exceeding guidance.

• Full-year 2024 net revenue declined 1.1% to $4.24B, with net income down 50% to $42M and adjusted EBITDA down 1.5% to $587.7M.

• Topgolf delivered record Q4 venue-level margins, with same-venue sales, adjusted EBITDA, and venue margins all outperforming expectations.

• A $1.45B non-cash impairment charge for Topgolf goodwill and intangibles led to a GAAP net loss of $1.51B for Q4 and $1.45B for the year.

• The company is preparing for the separation of Topgolf, evaluating both a spin and a potential sale in the second half of 2025.

Financial highlights

• Q4 consolidated revenue was $924M, up 3% year-over-year; adjusted EBITDA was $101M, up 45%.

• Q4 net loss was $59.8M (loss per share $0.33), compared to $57.9M loss in Q4 2023.

• Adjusted free cash flow for 2024 rose 27% to $203M; operating cash flow up 5% to $382M.

• Available liquidity at year-end was $797M, with net debt of $2.32B and net debt leverage ratio of 3.9x.

• A $1.45B non-cash impairment charge was recorded for Topgolf goodwill and intangibles.

Outlook and guidance

• 2025 consolidated revenue is expected to decline ~3% year-over-year to $4-$4.185B; adjusted EBITDA is projected at $415-$505M, down $128M at the midpoint.

• Topgolf 2025 revenue is forecast at $1.725-$1.835B, with adjusted EBITDA of $240-$300M.

• Core business revenue is expected to decline 5% year-over-year, mainly due to FX headwinds; organic revenue projected down 2%.

• Same-venue sales at Topgolf are expected to be down mid-single digits for the year, with Q1 down 10%-13%.

• Free cash flow is expected to remain positive in 2025.