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Mar 31
Topgolf Callaway Q1 2025 Earnings Report
Reported first quarter 2025 results
Key Takeaways
Topgolf Callaway Brands reported first quarter 2025 results with consolidated net revenue of $1,092.3 million, a decrease of 4.5% year-over-year. GAAP net income was $2.1 million, down significantly from the prior year, while non-GAAP net income increased to $20.3 million. Adjusted EBITDA saw a modest increase of 4.0%. The company reaffirmed its full-year guidance, subject to the pending sale of the Jack Wolfskin business.
Q1 consolidated Net Revenue of $1,092.3 million, down 4.5% year-over-year, but outperformed expectations.
GAAP income from operations was relatively flat at $66.5 million, while non-GAAP income from operations increased 20.9% to $87.8 million.
Adjusted EBITDA increased 4.0% year-over-year to $167.3 million, driven by improved profitability in Golf Equipment and Active Lifestyle segments.
Available liquidity strengthened to $805.0 million, an increase of 12% year-over-year.
Topgolf Callaway
Topgolf Callaway
Topgolf Callaway Revenue by Segment
Topgolf Callaway Revenue by Geographic Location
Revenue by Segment
Topgolf Revenue
CapyFin.comGolf Equipment Revenue
CapyFin.comActive Lifestyle Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.comRest of World Revenue
CapyFin.com Forward Guidance
The company is maintaining its consolidated full-year revenue and Adjusted EBITDA guidance, subject to the pending sale of the Jack Wolfskin business. However, the estimated same venue sales guidance for Topgolf has been decreased due to a softer consumer environment.
Positive Outlook
- Strong start to the year across all segments.
- Improving foreign currency exchange rates.
- Actions taken to reduce costs and mitigate tariff impact.
- Maintaining full year consolidated revenue and Adjusted EBITDA guidance.
- Planned sale of Jack Wolfskin business expected to enhance focus and balance sheet.
Challenges Ahead
- Softer consumer environment impacting Topgolf same venue sales.
- Decreased estimated same venue sales guidance for Topgolf.
- Expected more competitive launch environment in Golf Equipment in Q2.
- Continued impact from rightsizing of Jack Wolfskin business in Q2.
- Anticipated negative impact of approximately $22 million in Q2 related to hedging losses, tariffs, and sale of WGT.