Callaway Golf (NYSE: CALY) raises 2026 sales and EBITDA forecast
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Callaway Golf Company reported strong first quarter 2026 results and raised its full-year outlook. Net sales from continuing operations grew 9.2% to $687.5 million, driven by a 9.5% increase in Golf Equipment and 8.4% growth in Apparel, Gear and Other. GAAP net income from continuing operations rose to $74.9 million, while non-GAAP net income from continuing operations nearly doubled to $111.8 million. Adjusted EBITDA increased 31.1% to $163.7 million, supported by higher sales and gross margin expansion to 47.5%.
The company ended March 31, 2026 in a net cash position, with $500 million of cash and $474 million of debt, and fully repaid $258 million of convertible notes on May 1. Callaway repurchased $79 million of common stock through April, buying 5.6 million shares at an average price of $14.08. Management increased its 2026 net sales outlook to $2.015–$2.070 billion and Adjusted EBITDA outlook to $211–$233 million, and guided Q2 2026 net sales to $585–$610 million with Adjusted EBITDA of $98–$108 million.
Positive
- Raised 2026 guidance with strong Q1 beat indicators: Full-year net sales outlook increased to $2.015–$2.070 billion and Adjusted EBITDA to $211–$233 million, above prior ranges of $1.98–$2.05 billion and $170–$195 million, signaling higher expected profitability.
- Margin expansion and robust earnings growth: Non-GAAP net income from continuing operations rose 95.8% to $111.8 million and Adjusted EBITDA grew 31.1% to $163.7 million, supported by approximately 250–260 basis points of gross margin improvement.
- Deleveraging and net cash balance sheet: The company repaid $1.0 billion of term loan debt and fully settled $258 million of convertible notes in cash, finishing Q1 with $500 million of cash and $474 million of debt, while also returning $79 million via share repurchases.
Negative
- None.
Insights
Callaway posted broad-based Q1 growth, expanded margins, and raised 2026 guidance while strengthening its balance sheet.
Callaway Golf delivered 9.2% net sales growth to $687.5 million in Q1 2026, with both Golf Equipment and Apparel, Gear and Other contributing. Non-GAAP net income from continuing operations jumped 95.8% to $111.8 million, and Adjusted EBITDA rose 31.1% to $163.7 million, helped by gross margin reaching 47.5%.
Segment profitability improved meaningfully: Golf Equipment operating income margin increased to 24.2%, while Apparel, Gear and Other reached 25.8%. Europe net sales grew 29.4%, partially offsetting a 3.0% decline in Asia. The company also recorded a $27.7 million loss from equity method investments, reflecting its share of Topgolf’s results.
From a balance sheet perspective, Callaway used proceeds from a business line sale to repay $1.0 billion of term loan debt and fully settle $258 million of convertible notes, ending March 31, 2026 with $500 million of cash and $474 million of debt. Management raised 2026 net sales guidance to $2.015–$2.070 billion and Adjusted EBITDA guidance to $211–$233 million, above the prior ranges. Subsequent filings may provide further detail on execution against these updated targets.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales (continuing ops): $687.5 million
Net income from continuing operations (GAAP): $74.9 million
Non-GAAP net income from continuing operations: $111.8 million
+5 more
8 metrics
Net sales (continuing ops)
$687.5 million
Three months ended March 31, 2026; up 9.2% year-over-year
Net income from continuing operations (GAAP)
$74.9 million
Q1 2026; up 18.1% versus Q1 2025
Non-GAAP net income from continuing operations
$111.8 million
Q1 2026; up 95.8% year-over-year
Adjusted EBITDA
$163.7 million
Q1 2026; 31.1% increase versus Q1 2025
Gross margin (GAAP)
47.5%
Q1 2026; approximately 250 basis point improvement
2026 net sales outlook
$2.015–$2.070 billion
Raised full-year 2026 guidance from $1.98–$2.05 billion
2026 Adjusted EBITDA outlook
$211–$233 million
Raised full-year 2026 guidance from $170–$195 million
Share repurchases year-to-date
$79 million
Through April 30, 2026; 5.6 million shares at $14.08 average price
Key Terms
Adjusted EBITDA, non-GAAP net income from continuing operations, equity method investments, constant currency, +1 more
5 terms
Adjusted EBITDA financial
"Non-GAAP Adjusted EBITDA was $163.7 million, a 31.1% increase year-over-year."
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
non-GAAP net income from continuing operations financial
"Non-GAAP net income from continuing operations was $111.8 million, up 95.8%."
equity method investments financial
"Income (loss) from equity method investments was $(27.7) million."
An equity method investment is an accounting approach used when a company owns a significant share of another company and can influence its decisions but does not fully control it; instead of listing the investment at cost, the investor records its share of the other company's profits or losses on its own income statement and adjusts the investment value on the balance sheet. For investors, this matters because it links the investor’s reported earnings and asset values directly to the financial performance of that partly-owned business, similar to how a partner’s gains affect a small business owner’s books.
constant currency financial
"The Company provided certain information on a constant currency basis."
Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.
Transformation Plan financial
"Non-recurring adjustments include costs related to a plan intended to optimize organizational efficiencies under the separate business structures after the separation of Topgolf (the “Transformation Plan”)."
Earnings Snapshot
Net sales (continuing operations): $687.5 million · Guidance included
Q1 2026
Net sales (continuing operations)
$687.5 million
+9.2% year-over-year
Net income from continuing operations (GAAP)
$74.9 million
+18.1% year-over-year
Non-GAAP net income from continuing operations
$111.8 million
+95.8% year-over-year
Adjusted EBITDA
$163.7 million
+31.1% year-over-year
Diluted EPS from continuing operations (GAAP)
$0.38
+15.2% year-over-year
Non-GAAP diluted EPS from continuing operations
$0.56
+86.7% year-over-year
Guidance
For full year 2026, Callaway guides consolidated net sales to $2.015–$2.070 billion and Adjusted EBITDA to $211–$233 million; for Q2 2026, it expects net sales of $585–$610 million and Adjusted EBITDA of $98–$108 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
of incorporation)
001-10962
(Commission
File Number)
(IRS Employer
Identification No.)
(Address of principal executive offices)
(Zip Code)
(760 ) 931-1771
Registrant’s telephone number, including area code
NOT APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 7, 2026, Callaway Golf Company posted a press release and is holding a conference call regarding its financial results for the first quarter ended March 31, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any registration statement or other filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
| (d) Exhibits | |||||||||||
| 99.1 | Press Release dated May 7, 2026 captioned, "Callaway Golf Company Announces First Quarter 2026 Results" | ||||||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CALLAWAY GOLF COMPANY | ||||||||
Date: May 7, 2026 | By: | /s/ Heather D. McAllister | ||||||
| Name: | Heather D. McAllister | |||||||
| Title: | Senior Vice President, General Counsel and Corporate Secretary | |||||||
CALLAWAY GOLF COMPANY ANNOUNCES FIRST QUARTER 2026 RESULTS
First Quarter Net Sales (+9%), Net Income from Continuing Operations (+18%) and Adjusted EBITDA (+31%)
Raises Full Year 2026 Net Sales and Adjusted EBITDA Outlook
HIGHLIGHTS
•Q1 Non-GAAP Net Income from Continuing Operations increased 96%.
•Q1 GAAP and Non-GAAP Gross Margin increased 250 basis points and 260 basis points year-over-year, respectively.
•Repurchased $79 million of outstanding common shares through April 2026, including $75 million in open market transactions.
•On May 1, upon maturity, the Company settled in full its $258 million of convertible notes in cash and remains in a net cash position.
•Increasing full year 2026 net sales outlook to $2.015 billion - $2.070 billion and Adjusted EBITDA outlook to $211 million - $233 million.
CARLSBAD, CA /May 7, 2026/ Callaway Golf Company (the “Company,” “Callaway,” “we,” “our,” “us”) (NYSE: CALY) announced its financial results for the first quarter ended March 31, 2026.
“We had a strong start to the year with first quarter revenue increasing 9% and Adjusted EBITDA increasing 31%,” commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company. “While these results reflect some timing between quarters that benefitted Q1, overall these results reflect strong demand for our new products and the good progress we are making with our gross margin and cost savings initiatives. In addition, despite the increased macroeconomic uncertainty, the golf industry and golf consumer remain healthy. This all allows us to increase our expectations for the full year. Lastly, and perhaps most importantly, as the team and I have now had the opportunity to fully refocus on this business over the last several months, we are energized by the longer-term opportunities we see. In short, we are pleased with both the start to our year and what we see as the longer-term direction of our business.”
1
CONSOLIDATED RESULTS
The Company announced the following GAAP and non-GAAP financial results for the three months ended March 31, 2026 and 2025:
| GAAP RESULTS | |||||||||||||||||||||||
| (in millions, except percentages and per share data) | Three Months Ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | ||||||||||||||||||||
| Net sales | $ | 687.5 | $ | 629.6 | $ | 57.9 | 9.2 | % | |||||||||||||||
Income (loss) from operations | 138.2 | 103.1 | 35.1 | 34.0 | % | ||||||||||||||||||
| Total other income (expense), net | (2.9) | (12.5) | 9.6 | (76.8) | % | ||||||||||||||||||
| Income (loss) from equity method investments | (27.7) | — | (27.7) | n/m | |||||||||||||||||||
Income (loss) from continuing operations, before income taxes | 107.6 | 90.6 | 17.0 | 18.8 | % | ||||||||||||||||||
| Income tax provision (benefit) | 32.7 | 27.2 | 5.5 | 20.2 | % | ||||||||||||||||||
| Net income (loss) from continuing operations | $ | 74.9 | $ | 63.4 | $ | 11.5 | 18.1 | % | |||||||||||||||
| Net income (loss) from discontinued operations, net of tax | 18.2 | (61.3) | 79.5 | (129.7) | % | ||||||||||||||||||
| Net income (loss) | $ | 93.1 | $ | 2.1 | $ | 91.0 | n/m | ||||||||||||||||
| Net earnings (loss) per common share from continuing operations - diluted | $ | 0.38 | $ | 0.33 | $ | 0.05 | 15.2 | % | |||||||||||||||
| Net earnings (loss) per common share - diluted | $ | 0.47 | $ | 0.02 | $ | 0.45 | n/m | ||||||||||||||||
| Weighted-average common shares outstanding - diluted | 202.7 | 198.2 | 4.5 | 2.3 | % | ||||||||||||||||||
NON-GAAP RESULTS
Non-GAAP results (1) exclude certain non-cash and non-recurring adjustments and (2) include certain adjustments to interest expense that were otherwise presented in discontinued operations, both as further explained in the Additional Information and Disclosures section of this release. The Company has also provided a reconciliation of the non-GAAP information to the most directly comparable GAAP information in the tables to this release.
| (in millions, except percentages and per share data) | Three Months Ended March 31, | ||||||||||||||||||||||||||||
| 2026 | 2025 | $ Change | % Change | Constant Currency vs. 2025(1) | |||||||||||||||||||||||||
Net sales | $ | 687.5 | $ | 629.6 | $ | 57.9 | 9.2 | % | 8.0 | % | |||||||||||||||||||
Non-GAAP income (loss) from operations | $ | 142.2 | $ | 104.4 | $ | 37.8 | 36.2 | % | 30.0 | % | |||||||||||||||||||
| Non-GAAP net income (loss) from continuing operations | $ | 111.8 | $ | 57.1 | $ | 54.7 | 95.8 | % | |||||||||||||||||||||
| Non-GAAP earnings (loss) per common share from continuing operations - diluted | $ | 0.56 | $ | 0.30 | $ | 0.26 | 86.7 | % | |||||||||||||||||||||
Non-GAAP Adjusted EBITDA | $ | 163.7 | $ | 124.9 | $ | 38.8 | 31.1 | % | |||||||||||||||||||||
(1) See “Additional Information and Disclosures—Non-GAAP Information” for the calculation methodology of constant currency measures. | |||||||||||||||||||||||||||||
FIRST QUARTER 2026 CONSOLIDATED RESULTS COMMENTARY
(All comparisons to prior periods are calculated on a year-over-year basis, unless otherwise noted)
The Company’s net sales from continuing operations of $687.5 million increased 9.2% due to a 9.5% increase in the Golf Equipment segment, driven by its strong new product lineup and a healthy start to the golf season. Additionally, the Company had an 8.4% increase in the Apparel, Gear and Other segment as a result of strength in TravisMathew sales. The Company also saw a $7.6 million benefit from foreign currency as the U.S. dollar weakened early in the quarter.
GAAP and non-GAAP gross margin increased approximately 250 and 260 basis points to 47.5% and 47.7%, respectively. The increases in gross margin were due to the increased sales and positive impacts from the Company’s gross margin initiatives, which include select price increases.
GAAP operating expense increased 4.4%, while non-GAAP operating expense increased 3.4%. The increased expense was due to lapping the $12 million one‑time benefit related to the early termination of the Company’s former Japan headquarters lease in Q1 last year. Excluding the Japan lease, expenses were down versus last year driven by the previously announced cost-savings initiatives and some timing of spend between Q1 and Q2.
2
Net income from continuing operations was $74.9 million on a GAAP basis and $111.8 million on a non-GAAP basis. Adjusted EBITDA from continuing operations was $163.7 million, which represented a 31.1% increase year-over-year. The increase in Adjusted EBITDA was driven primarily by higher net sales and improved gross margins. These benefits more than offset approximately $18 million of incremental tariff expense and the year‑over‑year headwind from lapping the $12 million one-time Japan lease benefit in Q1 2025.
SEGMENT RESULTS
SEGMENT NET SALES
The table below provides net sales by segment for the periods presented:
| (in millions, except percentages) | Three Months Ended March 31, | Constant Currency vs. 2025(1) | |||||||||||||||||||||
| 2026 | 2025 | % Change | % Change | ||||||||||||||||||||
| Golf Equipment | $ | 486.2 | $ | 443.9 | 9.5 | % | 8.0 | % | |||||||||||||||
| Apparel, Gear and Other | 201.3 | 185.7 | 8.4 | % | 7.9 | % | |||||||||||||||||
| Net sales | $ | 687.5 | $ | 629.6 | 9.2 | % | 8.0 | % | |||||||||||||||
(1) See “Additional Information and Disclosures—Non-GAAP Information” for the calculation methodology of constant currency measures. | |||||||||||||||||||||||
SEGMENT OPERATING INCOME
The table below provides the breakout of segment operating income for the periods presented:
| (in millions, except percentages) | Three Months Ended March 31, | ||||||||||||||||
| 2026 | 2025 | Change | |||||||||||||||
| Golf Equipment | $ | 117.6 | $ | 101.8 | 15.5% | ||||||||||||
| % of segment net sales | 24.2 | % | 22.9 | % | 130 | bps | |||||||||||
| Apparel, Gear and Other | 52.0 | 35.4 | 46.9% | ||||||||||||||
| % of segment net sales | 25.8 | % | 19.1 | % | 670 | bps | |||||||||||
| Total Segment Operating Income (loss) | $ | 169.6 | $ | 137.2 | 23.6% | ||||||||||||
| % of total segment net sales | 24.7 | % | 21.8 | % | 290 | bps | |||||||||||
Total Segment Operating Income Constant Currency Growth (Decline) | 18.9 | % | |||||||||||||||
The following is a reconciliation on a GAAP basis of total segment operating income to income before income taxes for the periods presented:
| Three Months Ended March 31, | |||||||||||||||||
| (in millions) | 2026 | 2025 | $ Change | ||||||||||||||
| Total Segment operating income (loss): | $ | 169.6 | $ | 137.2 | $ | 32.4 | |||||||||||
Non-recurring expenses (1) | (4.0) | (1.3) | (2.7) | ||||||||||||||
Corporate costs and expenses (2) | (27.4) | (32.8) | 5.4 | ||||||||||||||
Income (loss) from operations | 138.2 | 103.1 | 35.1 | ||||||||||||||
Interest income (expense), net | (5.8) | (14.9) | 9.1 | ||||||||||||||
Other income (expense), net | 2.9 | 2.4 | 0.5 | ||||||||||||||
| Income (loss) from equity method investments | (27.7) | — | (27.7) | ||||||||||||||
Income (loss) from continuing operations, before income taxes | $ | 107.6 | $ | 90.6 | $ | 17.0 | |||||||||||
(1) Includes certain non-recurring and non-cash items as described in the schedules to this release. | |||||||||||||||||
(2) Includes corporate general and administrative expenses not utilized by management in determining segment profitability. For 2025, Corporate costs and expenses also includes adjustments for discontinued operations related to indirect costs that were previously allocated to the Topgolf and Jack Wolfskin businesses. | |||||||||||||||||
3
BALANCE SHEET AND CASH FLOW HIGHLIGHTS
•Inventory decreased $15.3 million year-over-year to $596.4 million, largely driven by timing of shipments.
•As of March 31, 2026, the Company was in a net cash position with $474 million in debt outstanding and unrestricted cash and cash equivalents of $500 million.
•On May 1, 2026, upon maturity, the Company settled in full in cash its $258 million of convertible notes.
•This year through April 30, 2026, the Company has repurchased 5.6 million shares of its common stock at an average cost of $14.08 per share
2026 OUTLOOK
| 2026 FULL YEAR OUTLOOK | |||||||||||
| (in millions, except where noted otherwise) | |||||||||||
| 2026 Current Estimate | 2026 Previous Estimate | 2025 As Reported | |||||||||
| Consolidated Net Sales | $2.015 to $2.070B | $1.98B to $2.05B | $2.06B | ||||||||
Adjusted EBITDA (1) | $211 to $233 | $170 to $195 | $222 | ||||||||
(1) Non-GAAP measure. See “Additional Information and Disclosures—Non-GAAP Information” for more information and the schedules to this press release for reconciliations to the most directly comparable GAAP measure. | |||||||||||
| 2026 SECOND QUARTER OUTLOOK | |||||||||||
| (in millions) | |||||||||||
Q2 2026 Estimate | Q2 2025 As Reported | ||||||||||
| Consolidated Net Sales | $585 to $610 | $600 | |||||||||
Adjusted EBITDA (1) | $98 to $108 | $92 | |||||||||
(1) Non-GAAP measure. See “Additional Information and Disclosures—Non-GAAP Information” for more information and the schedules to this press release for reconciliations to the most directly comparable GAAP measure. | |||||||||||
ADDITIONAL INFORMATION AND DISCLOSURES
Conference Call and Webcast
The Company will be holding a conference call at 2:00 p.m. Pacific time today, May 7, 2026, to discuss the Company’s financial results, outlook and business. The call will be webcast live on our investor relations website at https://ir.callawaygolf.com/news-and-events/presentations. The Company’s earnings presentation will be available ahead of the call and will include additional details. A replay of the conference call will be available approximately two hours after the call ends. The replay may be accessed through the Investor Relations section of the Company’s website at https://ir.callawaygolf.com.
Non-GAAP Information
The GAAP results contained in this press release and the financial statement schedules attached to this press release have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). To supplement the GAAP results, the Company has provided certain non-GAAP financial information as follows:
Constant Currency Basis. The Company provided certain information regarding the Company’s financial results or projected financial results on a "constant currency basis" or as "constant currency" results. This information estimates the impact of changes in foreign currency exchange rates on the translation of the Company’s current or projected future period financial results as compared to the applicable comparable period. This impact is derived by taking the current or projected local currency results and translating them into U.S. dollars based upon the foreign currency exchange rates for the applicable comparable period. It does not include any other effect of changes in foreign currency rates on the Company’s results or business.
4
Non-Recurring, Non-cash and Interest Expense Adjustments. The Company provided information excluding certain non-cash amortization of acquired intangible assets, including customer and distributor relationships and acquired developed technology related to the Company’s acquisitions of TravisMathew and OGIO (together, the “Acquisitions”). While the amortization of acquired intangible assets is excluded from the calculation of non-GAAP net income, the revenue and operating costs associated with these acquired companies is reflected in non-GAAP net income calculations, as well as the acquired assets that contribute to revenue generation. For specific non-recurring adjustment items, please see the Supplemental Financial Information and Non-GAAP Reconciliation section of this release. Non-recurring adjustments include, among other things subtraction of costs related to a plan intended to optimize organizational efficiencies and decrease operating costs under the separate business structures that are anticipated after the separation of Topgolf (the “Transformation Plan”). Costs incurred related to Non-Recurring and Non-Cash Adjustments are excluded from the measurement of segment profitability for internal and external reporting purposes. In addition, we have added back to certain of our non-GAAP results interest expense relating to debt incurred at the corporate level that is categorized under discontinued operations in order to burden continuing operations with the full impact of the Company’s total term debt.
Adjusted EBITDA. The Company provides information about its results excluding interest, taxes, depreciation and amortization expenses, stock compensation expense, non-cash lease amortization expense, and the non-recurring and non-cash items referenced above.
In addition, the Company has included in the schedules attached to this release a reconciliation of certain non-GAAP information to the most directly comparable GAAP information. The non-GAAP information presented in this release and related schedules should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP. The non-GAAP information may also be inconsistent with the manner in which similar measures are derived or used by other companies. Management uses such non-GAAP information for financial and operational decision-making purposes and as a means to evaluate period-over-period comparisons and in forecasting the Company’s business going forward. Management believes that the presentation of such non-GAAP information, when considered in conjunction with the most directly comparable GAAP information, provides additional useful comparative information for investors in their assessment of the underlying performance, and, in some cases, financial condition, of the Company’s business with regard to these items.
For forward-looking Adjusted EBITDA from Continuing Operations, a reconciliation to net income (loss) from continuing operations, the most closely comparable GAAP financial measure, is not provided because the Company is unable to provide such reconciliation without unreasonable efforts. The inability to provide a reconciliation is because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact net income in the future but would not impact Adjusted EBITDA from Continuing Operations. These items may include certain non-cash depreciation, which will fluctuate based on the Company’s level of capital expenditures, non-cash amortization of intangibles related to the Company’s Acquisitions, income taxes, which can fluctuate based on changes in the other items noted and/or future forecasts, interest expense, which varies based upon the amount of borrowing to fund the business, and other non-recurring costs and non-cash adjustments. Historically, the Company has excluded these items from Adjusted EBITDA from Continuing Operations. The Company currently expects to continue to exclude these items in future disclosures of Adjusted EBITDA from Continuing Operations and may also exclude other items that may arise. The events that typically lead to the recognition of such adjustments are inherently unpredictable as to if or when they may occur, and therefore actual results may differ materially. This unavailable information could have a significant impact on net income.
Equity Method Investments. The Company also removes any income or losses from equity method investments from non-GAAP net income from continuing operations and Adjusted EBITDA.
5
Forward-Looking Statements
Statements used in this press release that relate to future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company’s second quarter and full year 2026 guidance (including net sales, Adjusted EBITDA from Continuing Operations and cash balances), strength and demand of the Company’s products and services, continued brand momentum, positioning of the Company’s brands to gain market share, demand for golf and outdoor activities and apparel, continued investments in the business, consumer trends and behavior, future industry and market conditions, completion of any share repurchases, including the timing and amount thereof, return of capital to shareholders and positioning to create shareholder value, future liquidity, foreign currency effects and their impacts, tariff and tax rates and the effectiveness of mitigation efforts relating thereto, potential refunds of IEEPA tariffs, and statements of belief and any statement of assumptions underlying any of the foregoing, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “estimate,” “could,” “would,” “should,” “intend,” “may,” “plan,” “seek,” “anticipate,” “project” and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made and are not guarantees of future performance. These statements are based upon current information and expectations. Accurately estimating the forward-looking statements is based upon various risks and unknowns, including uncertainty regarding global economic conditions, including relating to inflation, decreases in consumer demand and spending, and any severe or prolonged economic downturn or economic recession; the Company’s level of indebtedness; continued availability of credit facilities and liquidity and ability to comply with applicable debt covenants; effectiveness of capital allocation and cost/expense reduction efforts; continued brand momentum and product success; growth in the direct-to-consumer and e-commerce channels; ability to realize the benefits of the continued investments in the Company’s business; consumer acceptance of and demand for the Company’s and its subsidiaries’ products; any changes in U.S. or foreign trade, tax or other policies, including restrictions on imports or an increase in import tariffs; future retailer purchasing activity, which can be significantly negatively affected by adverse industry and economic conditions and overall retail inventory levels; the level of promotional activity in the marketplace; and future changes in foreign currency exchange rates and the degree of effectiveness of the Company’s hedging programs. Actual results may differ materially from those estimated or anticipated as a result of these risks and unknowns or other risks and uncertainties, including the effect of terrorist activity, armed conflict, natural disasters or pandemic diseases on the economy generally, on the level of demand for the Company’s and its subsidiaries’ products or on the Company’s ability to manage its operations, supply chain and delivery logistics in such an environment; delays, difficulties or increased costs in the supply of components or commodities needed to manufacture the Company’s products or in manufacturing the Company’s products; and a decrease in participation levels in golf generally. For additional information concerning these and other risks and uncertainties that could affect these statements and the Company’s business, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 as well as other risks and uncertainties detailed from time to time in the Company’s reports on Forms 10-K, 10-Q and 8-K subsequently filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
About Callaway Golf Company
Callaway Golf Company (NYSE: CALY), is a premium golf equipment, gear and apparel company with a portfolio of global brands, including Callaway Golf, Odyssey, TravisMathew, and OGIO. Through an unwavering commitment to innovation and premium craftsmanship, Callaway designs, manufactures, and sells high-performance golf clubs, golf balls, apparel, bags, and other accessories—setting the standard for performance in the game of golf. For more information, please visit https://ir.callawaygolf.com.
Investor Contact
Patrick Burke
invrelations@callawaygolf.com
6
CALLAWAY GOLF COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
| March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 499.5 | $ | 903.2 | |||||||
| Accounts receivable, net | 393.8 | 123.2 | |||||||||
| Inventories | 596.4 | 625.3 | |||||||||
| Other current assets | 135.6 | 113.9 | |||||||||
| Current assets of discontinued operations | — | 4,170.0 | |||||||||
| Total current assets | 1,625.3 | 5,935.6 | |||||||||
| Property, plant and equipment, net | 156.2 | 159.5 | |||||||||
| Operating lease right-of-use assets, net | 164.5 | 173.5 | |||||||||
| Goodwill and intangible assets, net | 841.7 | 842.2 | |||||||||
| Equity method investments | 221.2 | — | |||||||||
| Other assets, net | 171.6 | 175.2 | |||||||||
| Total assets | $ | 3,180.5 | $ | 7,286.0 | |||||||
| LIABILITIES | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued expenses | $ | 282.9 | $ | 296.2 | |||||||
| Accrued employee compensation and benefits | 54.2 | 84.9 | |||||||||
| Long-term debt, current portion | 274.4 | 765.3 | |||||||||
| Asset-based credit facilities | 44.1 | 44.7 | |||||||||
| Operating lease liabilities, short-term | 22.6 | 22.9 | |||||||||
| Deferred revenue | 15.5 | 21.5 | |||||||||
| Other current liabilities | 19.9 | 18.5 | |||||||||
| Current liabilities of discontinued operations | — | 3,113.5 | |||||||||
| Total current liabilities | 713.6 | 4,367.5 | |||||||||
| Long-term debt, net | 152.9 | 650.7 | |||||||||
| Operating lease liabilities, long-term | 181.1 | 189.7 | |||||||||
| Other long-term liabilities | 9.0 | 9.2 | |||||||||
| Total shareholders’ equity | 2,123.9 | 2,068.9 | |||||||||
| Total liabilities and shareholders’ equity | $ | 3,180.5 | $ | 7,286.0 | |||||||
7
CALLAWAY GOLF COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net sales | $ | 687.5 | $ | 629.6 | |||||||
| Cost of sales | 360.8 | 346.0 | |||||||||
| Gross profit | 326.7 | 283.6 | |||||||||
| Operating expenses: | |||||||||||
| Selling, general and administrative expense | 173.3 | 164.6 | |||||||||
| Research and development expense | 15.2 | 15.9 | |||||||||
| Total operating expenses | 188.5 | 180.5 | |||||||||
Income (loss) from operations | 138.2 | 103.1 | |||||||||
| Interest income (expense), net | (5.8) | (14.9) | |||||||||
| Other income (expense), net | 2.9 | 2.4 | |||||||||
| Total other income (expense), net | (2.9) | (12.5) | |||||||||
| Income (loss) from equity method investments | (27.7) | — | |||||||||
Income (loss) from continuing operations, before income taxes | 107.6 | 90.6 | |||||||||
| Income tax provision (benefit) | 32.7 | 27.2 | |||||||||
| Net income (loss) from continuing operations | $ | 74.9 | $ | 63.4 | |||||||
| Net income (loss) from discontinued operations, net of tax | 18.2 | (61.3) | |||||||||
| Net income (loss) | $ | 93.1 | $ | 2.1 | |||||||
| Basic earnings (loss) per common share: | |||||||||||
| Continuing operations | $ | 0.41 | $ | 0.35 | |||||||
| Discontinued operations | $ | 0.10 | $ | (0.33) | |||||||
| Net earnings (loss) | $ | 0.51 | $ | 0.01 | |||||||
| Diluted earnings (loss) per common share: | |||||||||||
| Continuing operations | $ | 0.38 | $ | 0.33 | |||||||
| Discontinued operations | $ | 0.09 | $ | (0.31) | |||||||
| Net earnings (loss) | $ | 0.47 | $ | 0.02 | |||||||
| Weighted-average common shares outstanding: | |||||||||||
| Basic | 183.7 | 183.4 | |||||||||
| Diluted | 202.7 | 198.2 | |||||||||
8
CALLAWAY GOLF COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In millions)
(Unaudited)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) from continuing operations | $ | 74.9 | $ | 63.4 | |||||||
| Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization | 10.8 | 11.7 | |||||||||
| Loss from equity method investments | 27.7 | — | |||||||||
| Amortization of debt discount and issuance costs | 0.8 | 1.5 | |||||||||
| Gain on lease termination incentive | — | (12.0) | |||||||||
| Deferred taxes, net | 19.5 | 22.6 | |||||||||
| Share-based compensation | 6.4 | 5.9 | |||||||||
| Loss from partial debt extinguishment | 7.5 | — | |||||||||
| Loss on asset disposals | 0.6 | — | |||||||||
| Unrealized net losses (gains) on hedging instruments and foreign currency | (0.7) | 5.2 | |||||||||
| Gain on investment from golf-related ventures | (4.5) | — | |||||||||
| Other | (0.5) | 0.2 | |||||||||
| Change in assets and liabilities, net of business combinations | (311.5) | (207.4) | |||||||||
| Net cash provided by (used in) operating activities - continuing operations | (169.0) | (108.9) | |||||||||
| Net cash provided by (used in) operating activities - discontinued operations | — | 23.7 | |||||||||
| Net cash provided by (used in) operating activities | (169.0) | (85.2) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Capital expenditures | (7.0) | (7.8) | |||||||||
| Proceeds from sale of business line, net of cash retained | 818.8 | — | |||||||||
| Net cash provided by (used in) investing activities - continuing operations | 811.8 | (7.8) | |||||||||
| Net cash provided by (used in) investing activities - discontinued operations | — | (62.2) | |||||||||
| Net cash provided by (used in) investing activities | 811.8 | (70.0) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Repayments of long-term debt | (1,004.3) | (4.6) | |||||||||
| Proceeds from credit facilities, net | — | 19.9 | |||||||||
| Debt issuance costs | — | (0.4) | |||||||||
| Repayments of financing leases | (0.1) | (0.1) | |||||||||
| Acquisition of treasury stock | (42.0) | (3.3) | |||||||||
| Net cash provided by (used in) financing activities - continuing operations | (1,046.4) | 11.5 | |||||||||
| Net cash provided by (used in) financing activities - discontinued operations | — | 13.6 | |||||||||
| Net cash provided by (used in) financing activities | (1,046.4) | 25.1 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | (0.4) | 2.5 | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (404.0) | (127.6) | |||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 903.5 | 450.3 | |||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 499.5 | $ | 322.7 | |||||||
| Less: restricted cash of discontinued operations at end of period | — | (5.7) | |||||||||
| Cash and cash equivalents of continuing operations at end of period | $ | 499.5 | $ | 317.0 | |||||||
9
CALLAWAY GOLF COMPANY
CONSOLIDATED NET SALES AND OPERATING SEGMENT INFORMATION
(In millions)
(Unaudited)
| Net Sales by Product Category | |||||||||||||||||||||||||||||
| Three Months Ended March 31, | Growth/(Decline) | Constant Currency vs. 2025(1) | |||||||||||||||||||||||||||
| 2026 | 2025 | Dollars | Percent | Percent | |||||||||||||||||||||||||
| Net sales: | |||||||||||||||||||||||||||||
| Golf Clubs | $ | 380.6 | $ | 340.0 | $ | 40.6 | 11.9% | 10.4% | |||||||||||||||||||||
| Golf Balls | 105.6 | 103.9 | 1.7 | 1.6% | 0.3% | ||||||||||||||||||||||||
| Apparel | 102.7 | 98.0 | 4.7 | 4.8% | 5.1% | ||||||||||||||||||||||||
| Gear, Accessories & Other | 98.6 | 87.7 | 10.9 | 12.4% | 11.1% | ||||||||||||||||||||||||
| Total net sales | $ | 687.5 | $ | 629.6 | $ | 57.9 | 9.2% | 8.0% | |||||||||||||||||||||
(1) Calculated by applying 2025 exchange rates to 2026 reported net sales in regions outside the U.S. | |||||||||||||||||||||||||||||
| Net Sales by Region | |||||||||||||||||||||||||||||
| Three Months Ended March 31, | Growth/(Decline) | Constant Currency vs. 2025(1) | |||||||||||||||||||||||||||
| 2026 | 2025 | Dollars | Percent | Percent | |||||||||||||||||||||||||
| Net sales: | |||||||||||||||||||||||||||||
| United States | $ | 448.8 | $ | 416.1 | $ | 32.7 | 7.9% | 7.9% | |||||||||||||||||||||
| Europe | 83.2 | 64.3 | 18.9 | 29.4% | 18.2% | ||||||||||||||||||||||||
| Asia | 103.6 | 106.8 | (3.2) | (3.0%) | (0.7%) | ||||||||||||||||||||||||
| Rest of world | 51.9 | 42.4 | 9.5 | 22.4% | 15.8% | ||||||||||||||||||||||||
| Total net sales | $ | 687.5 | $ | 629.6 | $ | 57.9 | 9.2% | 8.0% | |||||||||||||||||||||
(1) Calculated by applying 2025 exchange rates to 2026 reported net sales in regions outside the U.S. | |||||||||||||||||||||||||||||
| Operating Segment Information | |||||||||||||||||||||||||||||
| Three Months Ended March 31, | Growth/(Decline) | Constant Currency vs. 2025(1) | |||||||||||||||||||||||||||
| 2026 | 2025 | Dollars | Percent | Percent | |||||||||||||||||||||||||
| Net sales: | |||||||||||||||||||||||||||||
| Golf Equipment | $ | 486.2 | $ | 443.9 | $ | 42.3 | 9.5% | 8.0% | |||||||||||||||||||||
| Apparel, Gear and Other | 201.3 | 185.7 | 15.6 | 8.4% | 7.9% | ||||||||||||||||||||||||
| Total net sales | $ | 687.5 | $ | 629.6 | $ | 57.9 | 9.2% | 8.0% | |||||||||||||||||||||
| Segment operating income: | |||||||||||||||||||||||||||||
| Golf Equipment | $ | 117.6 | $ | 101.8 | $ | 15.8 | 15.5 | % | |||||||||||||||||||||
| Apparel, Gear and Other | 52.0 | 35.4 | 16.6 | 46.9 | % | ||||||||||||||||||||||||
| Total segment operating income | 169.6 | 137.2 | 32.4 | 23.6 | % | ||||||||||||||||||||||||
Non-recurring items (2) | (4.0) | (1.3) | (2.7) | n/m | |||||||||||||||||||||||||
Corporate costs and expenses (3) | (27.4) | (32.8) | 5.4 | (16.5) | % | ||||||||||||||||||||||||
Income (loss) from operations | 138.2 | 103.1 | 35.1 | 34.0 | % | ||||||||||||||||||||||||
Interest income (expense), net | (5.8) | (14.9) | 9.1 | (61.1) | % | ||||||||||||||||||||||||
Other income (expense), net | 2.9 | 2.4 | 0.5 | 20.8 | % | ||||||||||||||||||||||||
| Total other income (expense), net | (2.9) | (12.5) | 9.6 | (76.8) | % | ||||||||||||||||||||||||
| Income (loss) from equity method investments | (27.7) | — | (27.7) | n/m | |||||||||||||||||||||||||
Income (loss) from continuing operations, before income taxes | $ | 107.6 | $ | 90.6 | $ | 17.0 | 18.8 | % | |||||||||||||||||||||
(1) Calculated by applying 2025 exchange rates to 2026 reported net sales in regions outside the U.S. | |||||||||||||||||||||||||||||
(2) Includes certain non-recurring and non-cash items as described in the below schedules to this release. | |||||||||||||||||||||||||||||
(3) Includes corporate general and administrative expenses not utilized by management in determining segment profitability. Corporate costs and expenses also includes adjustments for discontinued operations related to indirect costs that were previously allocated to the Topgolf and Jack Wolfskin businesses. | |||||||||||||||||||||||||||||
10
CALLAWAY GOLF COMPANY
SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATION
(In millions, except per share data)
(Unaudited)
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Non-Cash Acquisition-related Amortization | Tax Valuation Allowance | Non-Recurring Items(1) | (Loss) From Equity Method Investments | Non- GAAP | GAAP | Non-Cash Acquisition-related Amortization | Non-Recurring Items(2) | Non- GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 687.5 | $ | — | $ | — | $ | — | $ | — | $ | 687.5 | $ | 629.6 | $ | — | $ | — | $ | 629.6 | |||||||||||||||||||||||||||||||||||||||
| Cost of sales | 360.8 | — | — | 1.1 | — | 359.7 | 346.0 | — | 0.3 | 345.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Gross profit | $ | 326.7 | $ | — | $ | — | $ | (1.1) | $ | — | $ | 327.8 | $ | 283.6 | $ | — | $ | (0.3) | $ | 283.9 | |||||||||||||||||||||||||||||||||||||||
| Gross Margin | 47.5 | % | 47.7 | % | 45.0 | % | 45.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Non-recurring items from continuing operations primarily includes $1.0 million of charges incurred to relocate to a new UK warehousing property as a result of the sale of the Jack Wolfskin business in 2025. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Non-recurring items from continuing operations primarily includes restructuring and reorganization costs. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Non-Cash Acquisition-related Amortization | Tax Valuation Allowance (3) | Non-Recurring Items(1) | (Loss) From Equity Method Investments(4) | Non- GAAP | GAAP | Non-Cash Acquisition-related Amortization | Non-Recurring Items(2) | Non- GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | $ | 138.2 | $ | (0.2) | $ | — | $ | (3.8) | $ | — | $ | 142.2 | $ | 103.1 | $ | (0.1) | $ | (1.2) | $ | 104.4 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) from continuing operations | $ | 74.9 | $ | (0.2) | $ | 0.1 | $ | (4.4) | $ | (32.4) | $ | 111.8 | $ | 63.4 | $ | — | $ | 6.3 | $ | 57.1 | |||||||||||||||||||||||||||||||||||||||
(1) Non-recurring items from continuing operations primarily includes $7.5 million of other expense related to the continuing operations portion of the $15.0 million write off of debt issuance costs due to the $1.0 billion partial repayment of the term loan in January 2026 in connection with the sale of Topgolf, $1.0 million of costs related to the relocation to a new UK warehouse as a result of the sale of the Jack Wolfskin business in 2025, $1.0 million of restructuring charges related to the Transformation Plan and a $0.7 million write-off of software assets stemming from our separation from Topgolf. These costs were partially offset by a $4.3 million gain on our investment in Five Iron. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Non-recurring items from continuing operations primarily include $0.7 million of restructuring charges related to the Transformation Plan. In addition, $9.5 million of term loan interest expense incurred at the corporate level and included in discontinued operations is reflected as part of continuing operations in order to show the full effect of consolidated interest expense. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(3) During the first quarter of fiscal year 2026, we released valuation allowances on certain U.S. deferred tax assets in both continuing and discontinued operations related to the disposal of the Topgolf and Jack Wolfskin businesses. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(4) Represents our 40% proportionate share of Topgolf’s net loss, which is accounted for under the equity method. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GAAP | Non-Cash Acquisition-related Amortization | Tax Valuation Allowance | Non-Recurring Items | (Loss) From Equity Method Investments | Non- GAAP | GAAP | Non-Cash Acquisition-related Amortization | Non-Recurring Items | Non- GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted earnings (loss) per share from continuing operations (1) | $ | 0.38 | $ | — | $ | — | $ | (0.02) | $ | (0.16) | $ | 0.56 | $ | 0.33 | $ | — | $ | 0.03 | $ | 0.30 | |||||||||||||||||||||||||||||||||||||||
| Weighted-average shares outstanding - diluted | 202.7 | 202.7 | 202.7 | 202.7 | 202.7 | 202.7 | 198.2 | 198.2 | 198.2 | 198.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
(1) When aggregated, earnings per share amounts may not add across due to rounding. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11
CALLAWAY GOLF COMPANY
SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATION
(In millions, except per share data)
(Unaudited)
2026 Trailing Twelve Month Adjusted EBITDA | 2025 Trailing Twelve Month Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Quarter Ended | Quarter Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2025 | 2025 | 2026 | Total | 2024 | 2024 | 2024 | 2025 | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 45.5 | $ | (4.1) | $ | (66.0) | $ | 74.9 | $ | 50.3 | $ | 99.4 | $ | 31.0 | $ | (93.9) | $ | 63.4 | $ | 99.9 | |||||||||||||||||||||||||||||||||||||||
| Interest expense (income), net | 15.3 | 14.8 | 15.6 | 5.8 | 51.5 | 15.9 | 15.1 | 14.7 | 14.9 | 60.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax provision (benefit) | 13.1 | 2.7 | 5.8 | 32.7 | 54.3 | (17.8) | (34.8) | 62.2 | 27.2 | 36.8 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash depreciation and amortization expense | 11.2 | 10.8 | 10.4 | 10.8 | 43.2 | 10.9 | 11.3 | 11.8 | 11.7 | 45.7 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash stock compensation and stock warrant expense, net | 5.4 | 5.8 | 6.7 | 6.5 | 24.4 | 6.0 | 5.6 | 7.1 | 5.9 | 24.6 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Non-cash lease amortization expense | 0.6 | 0.3 | 0.1 | (0.5) | 0.5 | 0.6 | 0.4 | 0.4 | 0.6 | 2.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions & non-recurring items, before income taxes(1) | 0.9 | 0.3 | 2.3 | 5.8 | 9.3 | 1.7 | 1.2 | 2.1 | 1.2 | 6.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Loss from equity method investments | — | — | — | 27.7 | 27.7 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 92.0 | $ | 30.6 | $ | (25.1) | $ | 163.7 | $ | 261.2 | $ | 116.7 | $ | 29.8 | $ | 4.4 | $ | 124.9 | $ | 275.8 | |||||||||||||||||||||||||||||||||||||||
(1) In 2026, amounts primarily relate to the write-off of a proportionate amount debt issuance costs due to the $1.0 billion partial repayment of term loan debt in January 2026 in connection with the sale of Topgolf, charges incurred to relocate to a new UK warehouse in connection with the sale of the Jack Wolfskin business, the write-off of IT assets stemming from the sale of Topgolf, and restructuring charges related to the Transformation Plan, partially offset by remeasurement gains on our cost method investment and gains on the disposal of intellectual property. In 2025, amounts primarily include restructuring and reorganization charges related to the Transformation Plan. In 2024, amounts primarily include restructuring and reorganization charges related to the Transformation Plan, IT integration costs associated with the implementation of a new cloud based HRM system, IT costs related to a cybersecurity incident, and costs incurred to centralize warehousing and distribution operations to achieve synergies in connection with the Company’s acquisitions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
12
FAQ
How did Callaway Golf (CALY) perform financially in Q1 2026?
Callaway Golf delivered strong Q1 2026 results, with net sales from continuing operations rising 9.2% to $687.5 million. Net income from continuing operations increased to $74.9 million, while non-GAAP net income from continuing operations reached $111.8 million and Adjusted EBITDA grew 31.1% to $163.7 million.
What drove Callaway Golf’s revenue and margin growth in Q1 2026?
Growth came from both segments: Golf Equipment net sales rose 9.5% to $486.2 million, and Apparel, Gear and Other increased 8.4% to $201.3 million. GAAP gross margin improved to 47.5%, and non-GAAP gross margin to 47.7%, reflecting strong new product demand and gross margin initiatives.
How did Callaway Golf’s 2026 guidance change after Q1 2026 results?
Management raised full-year 2026 guidance, now expecting consolidated net sales of $2.015–$2.070 billion versus a prior $1.98–$2.05 billion range. The Adjusted EBITDA outlook increased to $211–$233 million, up from $170–$195 million, reflecting improved expectations after the strong first quarter.
What is Callaway Golf’s balance sheet and cash position as of March 31, 2026?
As of March 31, 2026, Callaway held $499.5 million of cash and cash equivalents and had $474 million of total debt, putting it in a net cash position. Inventory was $596.4 million, down $15.3 million year-over-year, largely due to shipment timing.
How much stock did Callaway Golf repurchase in 2026 to date?
Through April 30, 2026, Callaway repurchased 5.6 million shares of its common stock at an average cost of $14.08 per share. Total repurchases were $79 million, including $75 million in open market transactions, reflecting ongoing capital returns to shareholders.
What impact did equity method investments have on Callaway Golf’s Q1 2026 earnings?
In Q1 2026, Callaway recorded a $27.7 million loss from equity method investments, representing its proportionate share of investee results. This loss reduced GAAP net income from continuing operations but is excluded in the company’s non-GAAP net income and Adjusted EBITDA metrics.