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Topgolf Callaway Q1 Earnings Surpass Estimates, Revenues Fall Y/Y
MODGTopgolf Callaway Brands (MODG) ZACKS·2025-05-13 14:11

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 1.09billion,beatingtheconsensusestimateby3.11.09 billion, beating the consensus estimate by 3.1% [4] - Adjusted net income for the quarter was 20.3 million, up from 14.4millionintheprior−yearquarter[8]SegmentPerformance−∗∗TopgolfSegment∗∗:Revenueswere14.4 million in the prior-year quarter [8] Segment Performance - **Topgolf Segment**: Revenues were 393.7 million, down 6.8% from 422.8millionyear−over−year,withanoperatinglossof422.8 million year-over-year, with an operating loss of 11.9 million compared to an income of 2.9millionintheprior−yearquarter[5]−∗∗GolfEquipmentSegment∗∗:Revenueswere2.9 million in the prior-year quarter [5] - **Golf Equipment Segment**: Revenues were 443.7 million, a slight decline of 0.3% from 449.9millionyear−over−year,withoperatingincomeincreasingto449.9 million year-over-year, with operating income increasing to 101.6 million from 82.1million[6]−∗∗ActiveLifestyleSegment∗∗:Revenueswere82.1 million [6] - **Active Lifestyle Segment**: Revenues were 254.9 million, down 4.7% from 271.5millionyear−over−year,attributedtothedownsizingoftheJackWolfskinbusiness,thoughpartiallyoffsetbygrowthinChina[7]CostManagementandOutlook−TotalcostsandexpensesforQ12025were271.5 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 1.08billionintheprior−yearperiod[8]−ForQ22025,thecompanyexpectsrevenuesbetween1.08 billion in the prior-year period [8] - For Q2 2025, the company expects revenues between 1.075 billion and 1.115billion,withadjustedEBITDAprojectedbetween1.115 billion, with adjusted EBITDA projected between 139 million and 159million[11]−Forthefullyear2025,revenuesareanticipatedtobeintherangeof159 million [11] - For the full year 2025, revenues are anticipated to be in the range of 4 billion to 4.19billion,withTopgolfrevenuesexpectedbetween4.19 billion, with Topgolf revenues expected between 1.68 billion and $1.79 billion [12]