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 achieved record Q4 venue-level margins, with same-venue sales, adjusted EBITDA, and venue margins all outperforming expectations despite macro headwinds.

• 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 net revenue was $924.4M (+3% YoY); Q4 adjusted EBITDA rose 45% to $101.4M; Q4 net loss was $59.8M (loss per share $0.33).

• Full-year adjusted free cash flow was $203M, up 27% year-over-year; 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.

• Gross capital expenditures for 2024 were $295M, down from $482M in 2023; net capex after reimbursements was $179M.

• Topgolf Q4 revenue was flat at $439M; adjusted EBITDA grew 14% to $84M, with record venue-level margins.

Outlook and guidance

• 2025 revenue guidance: $4.0–$4.185B, a 1–3% decline year-over-year, reflecting $105M in FX and divestiture headwinds.

• 2025 adjusted EBITDA guidance: $415–$505M (down $128M at midpoint), with $120M in expected headwinds.

• Topgolf 2025 EBITDA guidance: $240–$300M; same-venue sales expected down mid-single digits for the year and 10–13% in Q1.

• Free cash flow expected to remain positive in 2025.

• $50M in one-time Topgolf separation costs and $15M incremental standalone public company costs expected in 2025.