Core Insights - Topgolf Callaway Brands Corp. (MODG) reported first-quarter 2025 results with earnings and revenues exceeding the Zacks Consensus Estimate, although total revenues declined year over year by 4.5% [1][4] - The company is divesting its Jack Wolfskin business to focus on core operations, improve resource allocation, and strengthen its balance sheet and liquidity [2] - Management remains optimistic about maintaining full-year revenue and adjusted EBITDA guidance, supported by a strong start to the year and favorable currency trends [3] Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 was 11 cents, surpassing the Zacks Consensus Estimate of 4 cents, compared to 8 cents in the prior-year quarter [4] - Total revenues reached $1.09 billion, beating the consensus estimate by 3.1% [4] - Adjusted net income for the quarter was $20.3 million, up from $14.4 million in the prior-year quarter [8] Segment Performance - **Topgolf Segment**: Revenues were $393.7 million, down 6.8% from $422.8 million year-over-year, with an operating loss of $11.9 million compared to an income of $2.9 million in the prior-year quarter [5] - **Golf Equipment Segment**: Revenues were $443.7 million, a slight decline of 0.3% from $449.9 million year-over-year, with operating income increasing to $101.6 million from $82.1 million [6] - **Active Lifestyle Segment**: Revenues were $254.9 million, down 4.7% from $271.5 million year-over-year, attributed to the downsizing of the Jack Wolfskin business, though partially offset by growth in China [7] Cost Management and Outlook - Total costs and expenses for Q1 2025 were $1.03 billion, down from $1.08 billion in the prior-year period [8] - For Q2 2025, the company expects revenues between $1.075 billion and $1.115 billion, with adjusted EBITDA projected between $139 million and $159 million [11] - For the full year 2025, revenues are anticipated to be in the range of $4 billion to $4.19 billion, with Topgolf revenues expected between $1.68 billion and $1.79 billion [12]

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Topgolf Callaway Brands (MODG) came out with quarterly earnings of $0.11 per share, beating the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 375%. A quarter ago, it was expected that this maker of golf equipment and accessories would post a loss of $0.40 per share when it actually produced a loss of $0.33, delivering a surprise of 17.5 ...

Financial Data and Key Metrics Changes - Consolidated revenues for Q1 2025 were $1,090 million, a decrease of 5% year over year, primarily due to lower Topgolf same venue sales and unfavorable foreign currency rates [40] - Q1 adjusted EBITDA increased by 4% to $167 million, driven by improved profitability in the golf equipment and active lifestyle segments [40] - Available liquidity increased by $85 million to $805 million as of March 31, 2025, due to increased cash compared to Q1 2024 [43] Business Line Data and Key Metrics Changes - Topgolf Q1 revenue decreased by 7% year over year, attributed to lower same venue sales and the sale of the World Golf Tour business [41] - Golf equipment revenue decreased by 1% to $444 million, but operating income increased by 24% to $102 million due to improved gross margins and cost savings [42] - Active Lifestyle segment revenue decreased by $17 million to $255 million, primarily due to the planned rightsizing of the Jack Wolfskin business [42] Market Data and Key Metrics Changes - U.S. rounds played were up 3.8% in March, but down slightly year to date, reflecting weather impacts [15] - Same venue sales at Topgolf were down approximately 12% for Q1, with corporate events down 13% [26] - The consumer base for Topgolf has an average income of approximately $100,000, indicating a relatively affluent target market [18] Company Strategy and Development Direction - The company announced the sale of Jack Wolfskin to ANTA Sports, allowing for greater business focus and financial flexibility [7] - Topgolf is implementing strategic initiatives to reset its value perception while maintaining a premium brand image [19] - The company is actively pursuing various alternatives for the separation of Topgolf, including a sale or spin-off, targeting the second half of the year for completion [45][46] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the demand side due to a slowing consumer environment, but noted that golf equipment has historically been resilient during mild recessions [10] - The company is optimistic about its ability to navigate current macroeconomic challenges, including tariffs and consumer spending pressures [50] - Management maintained full-year guidance despite the anticipated impact of the Jack Wolfskin sale and current tariffs [49] Other Important Information - The company expects to see a decline in Topgolf same venue sales guidance to down 6% to 12% for the year [22] - Adjusted EBITDA guidance for Topgolf remains at $240 million to $300 million, supported by ongoing cost savings initiatives [49] - The company is testing new value offerings and enhancing customer experience to drive traffic growth [34] Q&A Session Summary Question: Any change in the industry backdrop for the core golf equipment business? - Management noted that the golf consumer remains strong, and the outlook for the golf business is positive with no material changes [56] Question: How much do you attribute the softening at Topgolf to macro factors versus competition? - Management indicated that corporate spending pressure is a direct macro impact, while the consumer remains price sensitive [58] Question: How do you plan to manage venue-level cost structure going forward? - Management expressed confidence in long-term venue margins, emphasizing ongoing investments in value while maintaining player experience [66] Question: What is the impact of the Easter shift on business? - Management acknowledged a shift in events due to Easter but did not consider it material to their guidance [69] Question: Can you provide an update on cost savings and their impact? - Management confirmed that proactive cost savings have been beneficial, allowing them to hold guidance despite challenges [72] Question: How much of the Topgolf same venue sales reduction was due to April trends? - Management stated that the primary driver was the outlook on events, with improved traffic trends in the walk-in business [81] Question: Is there a value orientation program for the events business? - Management is offering more local flexibility in the events business to compete effectively, but noted that corporate spending is currently under pressure [99]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period to Commission file number 001-10962 Topgolf Callaway Brands Corp. (Exact name of registrant as specified in its charter) Delaware 95-3797580 (State or other jurisdiction of in ...

First Quarter 2025 Earnings Conference Call May 12, 2025 IMPORTANT NOTICES Forward-looking Statements. During the presentation, any comments made about future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company's financial outlook (including, among others, Company, Topgolf and core business revenues, same venue sales, the Non-GAAP Projections (as defined below), and capital expenditures), our plans to pursue a separation of the Topg ...

TOPGOLF CALLAWAY BRANDS ANNOUNCES FIRST QUARTER 2025 RESULTS HIGHLIGHTS CARLSBAD, CA /May 12, 2025/ Topgolf Callaway Brands Corp. (the "Company" or "Topgolf Callaway Brands", "we", "our", "us") (NYSE: MODG) announced its financial results for the first quarter ended March 31, 2025. "We are pleased with our first quarter results as we met or beat our plan in all segments of our business," commented Chip Brewer, President and CEO. "We are particularly pleased with the performance of our Golf Equipment busines ...

HIGHLIGHTS Q1 consolidated Net Revenue of $1,092 million and strong Adjusted EBITDA both outperformed expectations. Q1 Total Segment Operating Income increased 9.7%. The Company further strengthened its available liquidity position to $805 million, increasing by 12% year-over-year. The Company reaffirmed its consolidated full year Revenue and Adjusted EBITDA guidance (subject to adjustment pending the sale of its Jack Wolfskin business).CARLSBAD, Calif., May 12, 2025 /PRNewswire/ -- Topgolf Callaway Brands ...

In its upcoming report, Topgolf Callaway Brands (MODG) is predicted by Wall Street analysts to post quarterly loss of $0.04 per share, reflecting a decline of 144.4% compared to the same period last year. Revenues are forecasted to be $1.06 billion, representing a year-over-year decrease of 7.4%.The consensus EPS estimate for the quarter has been revised 3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimate ...

CARLSBAD, Calif., May 5, 2025 /PRNewswire/ -- Topgolf Callaway Brands Corp. (the "Company" or "Topgolf Callaway Brands") (NYSE: MODG) announced today that it intends to release its first quarter 2025 financial results on Monday, May 12, 2025, after the market closes. Following the release, the Company's management team will hold a conference call to review the results and discuss the Company's business and outlook beginning at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). A live webcast and presentation ...