Callaway Golf Company

What they do

Callaway designs, manufactures and sells high-performance golf clubs, golf balls, apparel, bags and accessories under the Callaway Golf, Odyssey, TravisMathew and OGIO brands. Products are distributed through on-course, specialty retail, wholesale, direct-to-consumer and international channels. The company operates two reportable segments, Golf Equipment and Apparel, Gear and Other, and retains a minority equity interest in Topgolf.

Revenue drivers

• Golf Equipment — Includes Callaway Golf-branded woods, hybrids, irons, wedges, packaged sets and golf balls, plus Odyssey putters and pre-owned club sales; performance is seasonal and tied to golf participation.
• Apparel, Gear and Other — The soft goods business marketed under the Callaway, TravisMathew and OGIO brand names; renamed from the former Active Lifestyle segment in Q4 2025 with no change in composition.
• Equity method investment in Topgolf — Following the January 1, 2026 sale of a 60% interest to Leonard Green & Partners, Callaway holds a remaining 39.3% stake whose earnings or losses are included in continuing operations.

Recent performance

For Q2 2026, net sales rose 2.0% to $612.2 million from $600.4 million, and GAAP net income from continuing operations increased 66.6% to $75.8 million. Diluted EPS from continuing operations was $0.40 versus $0.24, and income from operations improved 54.5% to $114.8 million. Q2 GAAP gross margin rose 620 basis points year-over-year, and Adjusted EBITDA grew 36%. Through June 2026 the company repurchased $84 million of common shares and repaid in full $258 million of convertible notes and $163 million outstanding under its term loan B facility.

Strategy

The company says its strategy is to build differentiated, performance-driven golf products through technology and premium craftsmanship, scaled with brand stewardship, operational efficiency and cost discipline. Beginning in 2025 it realigned to a pure-play golf business, selling Jack Wolfskin for approximately $290.0 million on May 31, 2025 and completing the Topgolf Sale effective January 1, 2026, which generated $820.1 million of net proceeds from the sale and related financing transactions. It renamed itself Callaway Golf Company effective January 15, 2026 and changed its ticker from MODG to CALY on January 16, 2026. Capital allocation has emphasized share repurchases and debt repayment.

Risks

• Discretionary consumer demand — Callaway's products are recreational and discretionary, so demand is highly sensitive to economic downturns, unemployment, interest rates and consumer confidence.
• Seasonality — Golf Equipment results fluctuate seasonally because golf is played seasonally in most regions where the company operates, making interim results not indicative of full-year results.
• Divestiture execution and retained stake — The company must manage the transition to a smaller pure-play business while carrying a 39.3% equity-method Topgolf stake whose earnings or losses flow through continuing operations.
• Tariffs and trade costs — Q2 2026 GAAP results included $10.8 million of Phase 1 tariff refunds, underscoring exposure of product costs to tariff and trade policy changes.

Outlook

Management raised full-year 2026 Adjusted EBITDA guidance to $246 million to $260 million, with a revised net sales outlook of $2.045 billion to $2.070 billion. The CEO cited revenue growth, gross margin improvement and Adjusted EBITDA exceeding expectations in Q2, and said the company remains encouraged by overall market conditions and the resilience of the golf consumer while noting more opportunity ahead.