Callaway Golf Company (CALY) Q4 2025 earnings summary

Executive summary

• Returned to a pure-play golf equipment company after divesting Jack Wolfskin and a 60% stake in Topgolf, resulting in a net cash position and reduced leverage.

• Q4 and full-year 2025 net revenue and Adjusted EBITDA exceeded expectations.

• Initiated 2026 guidance: revenue of $1.98B–$2.05B and Adjusted EBITDA of $170M–$195M.

• Achieved a net cash position post-Topgolf transaction, with $680M in cash and $480M in gross debt as of January 2026.

• Refocused on higher-margin products, SKU rationalization, and longer product life cycles.

Financial highlights

• Full-year 2025 net sales were $2,060.1M, down 0.8%–1% year-over-year; Q4 net sales were $367.5M–$368M, down 1%–1.1%.

• Full-year Adjusted EBITDA was $222.4M, down $38.8M–$39M year-over-year but above expectations.

• Full-year gross margin was 42.1%–42.2%, down 60 bps, impacted by $34M in incremental tariffs.

• Q4 Adjusted EBITDA was -$25M to -$25.1M, a $30M decline year-over-year.

• Q4 GAAP net loss from continuing operations was $66M; full-year GAAP net income was $38.8M.

Outlook and guidance

• 2026 revenue guidance: $1.98B–$2.05B; Adjusted EBITDA: $170M–$195M.

• Q1 2026 revenue forecast: $635M–$665M; Adjusted EBITDA: $110M–$125M.

• 2026 CapEx expected at $35M–$40M; free cash flow target of ~$100M.

• Guidance reflects $40M in incremental tariffs and $16M lower dividend income.

• Plans to pay off $258M in convertible notes by May 2026 and maintain a net cash or zero net leverage position.