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Dec 31, 2024
Topgolf Callaway Q4 2024 Earnings Report
Topgolf Callaway Brands Corp. reported a 3.0% increase in Q4 2024 net revenue, reaching $924.4 million, with a GAAP net loss of $1,512.7 million primarily due to a non-cash impairment charge. Adjusted EBITDA significantly increased by 45% to $101.4 million, exceeding expectations.
Key Takeaways
Topgolf Callaway Brands Corp. experienced a mixed Q4 2024, with net revenue growing 3.0% to $924.4 million, driven by strong performance in Golf Equipment. However, the company reported a substantial GAAP net loss of $1,512.7 million due to a $1,452.0 million non-cash impairment charge related to Topgolf's goodwill and intangible assets. Despite this, Adjusted EBITDA saw a significant 45% increase to $101.4 million, outperforming guidance.
Q4 consolidated Net Revenue grew 3% and Adjusted EBITDA grew 45%, both outperforming guidance.
Total Company operating cash flow increased 5% to $382 million, and Adjusted Free Cash Flow increased 27% to $203 million.
Topgolf's same venue sales, Adjusted EBITDA, Adjusted Free Cash Flow, and venue margins all exceeded expectations in Q4.
In 2024, the Callaway brand maintained its #1 position in U.S. market share in total golf clubs for the third consecutive year and achieved record U.S. market share in golf ball.
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's 2025 outlook assumes a consumer environment similar to 2024, with anticipated headwinds impacting revenue and Adjusted EBITDA. Despite these challenges, the company expects to return to growth and deliver significant shareholder value by executing its strategic initiatives.
Positive Outlook
- Continued strength in Golf Equipment business, including leading market share position in golf clubs and record market share in golf balls.
- Continued strong operating performance at TravisMathew and successful reorganization at Jack Wolfskin.
- Topgolf had a strong finish to the year with same venue sales, venue margins, and adjusted free cash flow outpacing expectations.
- Active implementation of initiatives to address same venue sales at Topgolf.
- Focus on executing strategic initiatives, bringing exciting new products and programs to market, and driving continued operating efficiencies.
Challenges Ahead
- Anticipated revenue headwinds of approximately $105 million in 2025.
- Anticipated Adjusted EBITDA headwinds of approximately $120 million in 2025.
- Approximately $60 million in Core business revenue headwinds from unfavorable changes in foreign currency exchange rates.
- Approximately $45 million in total headwinds from the sale of the Topgolf World Golf Tour (WGT) mobile gaming business and a transition to a retail calendar for reporting purposes in 2025.
- Approximately $75 million in Core business Adjusted EBITDA headwinds relating to estimated impact of changes in foreign currency, expected increase in tariffs, and a reset of incentive compensation.