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On June 18, 2026, Acushnet Holdings Corp GOLF shares rose 7.2%, bringing the current price to $107.73. The stock has shown strong performance recently, with a 52-week range of $70.28 to $108.66.

GF Value™ verdict: Current price is $107.73, which is 36.0% above the GF Value™ of $79.22, indicating it is overvalued.GF Score™ is 83/100, which suggests a strong overall performance relative to its peers.Notable signal: Insiders sold $1.4 million worth of shares in the last three months, indicating a lack of buying interest from those with the most intimate knowledge of the company. Is GOLF Overvalued or Undervalued? The current share price of Acushnet Holdings Corp GOLF at $107.73 is significantly above the GF Value™ estimate of $79.22, which suggests that the stock is overvalued by approximately 36.0%. This valuation implies a lack of margin of safety for potential investors, as the current price does not offer a compelling entry point based on intrinsic value calculations. The GF Valuation label categorizes GOLF as "Significantly Overvalued," highlighting the risks associated with investing at this price level.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the substantial premium of the current price over the GF Value™, investors may face heightened risks if the market corrects itself or if the company's performance does not meet the elevated expectations reflected in the stock price.

How Does GOLF's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 37.9x 19.9x Forward P/E 28.6x N/A With a current P/E (TTM) of 37.9x, Acushnet is trading at a level 91% above its 5-year median P/E of 19.9x. This significant disparity suggests that GOLF is currently overvalued relative to its historical valuation metrics. The forward P/E of 28.6x also indicates that the stock is trading above its historical levels, which aligns with the GF Value™ verdict that GOLF is overvalued.

What Does GOLF's GF Score™ Tell Us? Metric Rating GF Score™ 83/100 Financial Strength 5/10 Profitability 8/10 Growth 7/10 Valuation 5/10 Momentum 8/10 The GF Score™ of 83/100 indicates that Acushnet Holdings Corp has a strong overall rating, particularly in terms of profitability (8/10) and momentum (8/10). However, the score for financial strength (5/10) and valuation (5/10) reflects areas of concern, particularly considering the stock's current overvaluation status. The company’s growth rank of 7/10 suggests that while it has potential, the current high price relative to its historical valuation may not offer a secure investment opportunity.

What Are Insiders Doing with GOLF Stock? Recent insider activity shows that insiders have sold $1.4 million worth of shares over the past three months, with no reported purchases. This trend may indicate a lack of confidence among those closest to the company regarding its future performance, which could be a concerning signal for potential investors. The absence of insider buying could suggest that insiders do not view the current stock price as favorable for investment.

What This Means for Investors Based on the analysis of GF Value™, Acushnet Holdings Corp GOLF appears to be overvalued at its current price of $107.73. The significant premium over the intrinsic value estimate and the concerning insider selling activity suggest a cautious approach for potential investors.

For the complete analysis, visit the Acushnet Holdings Corp GOLF stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is GOLF's GF Score™?

The GF Score™ for Acushnet Holdings Corp is 83/100, indicating a strong overall performance relative to its peers, particularly in profitability and momentum.

Is GOLF overvalued or undervalued?

GOLF is deemed overvalued based on GF Value™, with the current price of $107.73 being 36.0% above the intrinsic value estimate of $79.22.

What is GOLF's P/E ratio?

The current P/E (TTM) for GOLF is 37.9x, which is significantly higher than its 5-year median P/E of 19.9x, suggesting overvaluation in relation to historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Acushnet (NYSE: GOLF - Get Free Report) and Topgolf Callaway Brands (NYSE: CALY - Get Free Report) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability. Volatility and Risk Acushnet has a

The trade landscape in 2025 and 2026 raised costs and rewrote the rulebook for who wins in consumer goods. A baseline 10% tariff on most imports, reciprocal tariffs hitting China as high as 145% at times, and the death of the de minimis loophole have fundamentally changed the competitive math.

Granted, tariff conversations and discussions are ongoing, but companies that spent the last decade building lean, China-dependent supply chains are now scrambling. But a handful of less-discussed names have been positioned ahead of all of it. Here are four that deserve a closer look.

Image source: Getty Images.

1. Insteel Industries is watching imports dry up There's a sentence buried in Insteel Industries' (IIIN 0.10%) most recent earnings call that should make investors pause. The company noted that as a result of the Section 232 tariff being expanded to derivative products, "imports have declined precipitously." Insteel is the largest domestic manufacturer of steel wire reinforcing products for concrete construction, and for years, it had to compete against foreign PC strand flooding in at artificially low prices. That structural disadvantage is now gone.

Insteel operates almost entirely within the U.S., purchases raw materials domestically, and serves infrastructure and construction markets. These sectors are getting a long tailwind from domestic manufacturing investment. Only about 10% of its revenue touches import-exposed categories. That's the kind of supply chain the current moment was made for. This is a solid investment to consider.

Today's Change

(

-0.10

%) $

-0.03

Current Price

$

28.84

2. Duluth Trading Co. is playing defense with its sourcing Duluth Trading Co. (DLTH +2.98%) just reported one of its quieter-but-more-interesting results in recent memory. Gross margin jumped 890 basis points in its fiscal fourth quarter, and it did so while absorbing more than $7 million in tariff costs. That's not really luck. It's what the company calls its "direct to factory sourcing initiative." In other words, it's building closer relationships with overseas manufacturers to cut out middlemen and reduce the cost per unit.

At the same time, Duluth is leaning into its identity as a brand for what it calls the "Modern, Self-Reliant American," which, whether you find that marketing compelling or not, is a customer who responds well to functional, durable American-style goods. The stock is small and illiquid, but the operational turnaround here is real. Be wary, the stock has had a great month. I would take a "wait and see" approach when starting investments here.

Today's Change

(

2.98

%) $

0.14

Current Price

$

4.91

3. Acushnet Holdings is mitigating tariffs better than almost anyone Most companies projected tariff costs, only to see those projections blow up. Acushnet Holdings (GOLF 0.42%) is the parent company of Titleist and FootJoy, and did the opposite: It reduced its full-year tariff impact estimate from $75 million to around $35 million through a deliberate set of mitigation actions. The golf market itself has shown resilience, Acushnet continues to grow, and the Titleist brand commands the kind of premium pricing that creates a buffer.

The company has been aggressively buying back shares and maintaining its dividend. For an investor who wants tariff exposure in a sector nobody is writing about, this is an unusual combination of pricing power and supply chain sophistication.

Today's Change

(

-0.42

%) $

-0.42

Current Price

$

99.02

4. Lifetime Brands built its own factory in Mexico Before "nearshoring" was a financial media buzzword, Lifetime Brands (LCUT 0.11%) acquired manufacturing operations in Mexico and built out its own plastics production facility. By the end of 2025, the company expected roughly 80% of its production to be sourced outside China.

The housewares space is getting squeezed, and Lifetime's stock has struggled. But the company has consistently paid dividends for 15 years, carries a current ratio of over 2 times, and is one of the few in its category that physically controls a nearshore manufacturing operation. The question is whether it executes cleanly into 2026. With the ticker being this low and the market cap dropping this spring, it's a safe time to consider buying.

Brunswick (BC - Free Report) came out with quarterly earnings of $0.7 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +53.61%. A quarter ago, it was expected that this boat and sporting goods company would post earnings of $0.58 per share when it actually produced earnings of $0.58, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Brunswick, which belongs to the Zacks Leisure and Recreation Products industry, posted revenues of $1.38 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.65%. This compares to year-ago revenues of $1.22 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Brunswick shares have added about 6.9% since the beginning of the year versus the S&P 500's gain of 4.2%.

What's Next for Brunswick?While Brunswick has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Brunswick was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.55 on $1.56 billion in revenues for the coming quarter and $4.23 on $5.75 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Products is currently in the top 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Acushnet (GOLF - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.

This golf products maker is expected to post quarterly earnings of $1.38 per share in its upcoming report, which represents a year-over-year change of -14.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Acushnet's revenues are expected to be $722.09 million, up 2.7% from the year-ago quarter.

Acushnet (GOLF - Free Report) came out with quarterly earnings of $1.36 per share, missing the Zacks Consensus Estimate of $1.38 per share. This compares to earnings of $1.62 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -1.57%. A quarter ago, it was expected that this golf products maker would post a loss of $0.27 per share when it actually produced a loss of $0.3, delivering a surprise of -11.11%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

Acushnet, which belongs to the Zacks Leisure and Recreation Products industry, posted revenues of $752.98 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 4.28%. This compares to year-ago revenues of $703.37 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Acushnet shares have added about 17.5% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for Acushnet?While Acushnet has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Acushnet was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.58 on $773.08 million in revenues for the coming quarter and $3.77 on $2.66 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Leisure and Recreation Products is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Peloton (PTON - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.

This exercise bike and treadmill company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +150%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Peloton's revenues are expected to be $614.95 million, down 1.5% from the year-ago quarter.

First Quarter Net Sales (+9%), Net Income from Continuing Operations (+18%) and Adjusted EBITDA (+31%)

Raises Full Year 2026 Net Sales and Adjusted EBITDA Outlook

HIGHLIGHTS

Q1 Non-GAAP Net Income from Continuing Operations increased 96%. Q1 GAAP and Non-GAAP Gross Margin increased 250 basis points and 260 basis points year-over-year, respectively. Repurchased $79 million of outstanding common shares through April 2026, including $75 million in open market transactions. On May 1, upon maturity, the Company settled in full its $258 million of convertible notes in cash and remains in a net cash position. Increasing full year 2026 net sales outlook to $2.015 billion - $2.070 billion and Adjusted EBITDA outlook to $211 million - $233 million. , /PRNewswire/ -- Callaway Golf Company (the "Company," "Callaway," "we," "our," "us") (NYSE: CALY) announced its financial results for the first quarter ended March 31, 2026.

"We had a strong start to the year with first quarter revenue increasing 9% and Adjusted EBITDA increasing 31%," commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company. "While these results reflect some timing between quarters that benefitted Q1, overall these results reflect strong demand for our new products and the good progress we are making with our gross margin and cost savings initiatives. In addition, despite the increased macroeconomic uncertainty, the golf industry and golf consumer remain healthy. This all allows us to increase our expectations for the full year. Lastly, and perhaps most importantly, as the team and I have now had the opportunity to fully refocus on this business over the last several months, we are energized by the longer-term opportunities we see. In short, we are pleased with both the start to our year and what we see as the longer-term direction of our business."

CONSOLIDATED RESULTS

The Company announced the following GAAP and non-GAAP financial results for the three months ended March 31, 2026 and 2025:

GAAP RESULTS

(in millions, except percentages and per share data)

Three Months Ended March 31,

2026

2025

$ Change

% Change

Net sales

$   687.5

$   629.6

$     57.9

9.2 %

Income (loss) from operations

138.2

103.1

35.1

34.0 %

Total other income (expense), net

(2.9)

(12.5)

9.6

(76.8) %

Income (loss) from equity method investments

(27.7)

—

(27.7)

n/m

Income (loss) from continuing operations, before income taxes

107.6

90.6

17.0

18.8 %

Income tax provision (benefit)

32.7

27.2

5.5

20.2 %

Net income (loss) from continuing operations

$     74.9

$     63.4

$     11.5

18.1 %

Net income (loss) from discontinued operations, net of tax

18.2

(61.3)

79.5

(129.7) %

Net income (loss)

$     93.1

$       2.1

$     91.0

n/m

Net earnings (loss) per common share from continuing operations - diluted

$     0.38

$     0.33

$     0.05

15.2 %

Net earnings (loss) per common share - diluted

$     0.47

$     0.02

$     0.45

n/m

Weighted-average common shares outstanding - diluted

202.7

198.2

4.5

2.3 %

NON-GAAP RESULTS

Non-GAAP results (1) exclude certain non-cash and non-recurring adjustments and (2) include certain adjustments to interest expense that were otherwise presented in discontinued operations, both as further explained in the Additional Information and Disclosures section of this release. The Company has also provided a reconciliation of the non-GAAP information to the most directly comparable GAAP information in the tables to this release.

(in millions, except percentages and per share data)

Three Months Ended March 31,

2026

2025

$
Change

%
Change

Constant

Currency

vs. 2025(1)

Net sales

$ 687.5

$ 629.6

$  57.9

9.2 %

8.0 %

Non-GAAP income (loss) from operations

$ 142.2

$ 104.4

$  37.8

36.2 %

30.0 %

Non-GAAP net income (loss) from continuing operations

$ 111.8

$   57.1

$  54.7

95.8 %

Non-GAAP earnings (loss) per common share from continuing operations - diluted

$   0.56

$   0.30

$  0.26

86.7 %

Non-GAAP Adjusted EBITDA

$ 163.7

$ 124.9

$  38.8

31.1 %

(1)

See "Additional Information and Disclosures—Non-GAAP Information" for the calculation methodology of constant currency measures.

FIRST QUARTER 2026 CONSOLIDATED RESULTS COMMENTARY

(All comparisons to prior periods are calculated on a year-over-year basis, unless otherwise noted)

The Company's net sales from continuing operations of $687.5 million increased 9.2% due to a 9.5% increase in the Golf Equipment segment, driven by its strong new product lineup and a healthy start to the golf season. Additionally, the Company had an 8.4% increase in the Apparel, Gear and Other segment as a result of strength in TravisMathew sales. The Company also saw a $7.6 million benefit from foreign currency as the U.S. dollar weakened early in the quarter.

GAAP and non-GAAP gross margin increased approximately 250 and 260 basis points to 47.5% and 47.7%, respectively. The increases in gross margin were due to the increased sales and positive impacts from the Company's gross margin initiatives, which include select price increases.

GAAP operating expense increased 4.4%, while non-GAAP operating expense increased 3.4%. The increased expense was due to lapping the $12 million one‑time benefit related to the early termination of the Company's former Japan headquarters lease in Q1 last year. Excluding the Japan lease, expenses were down versus last year driven by the previously announced cost-savings initiatives and some timing of spend between Q1 and Q2.

Net income from continuing operations was $74.9 million on a GAAP basis and $111.8 million on a non-GAAP basis. Adjusted EBITDA from continuing operations was $163.7 million, which represented a 31.1% increase year-over-year. The increase in Adjusted EBITDA was driven primarily by higher net sales and improved gross margins. These benefits more than offset approximately $18 million of incremental tariff expense and the year‑over‑year headwind from lapping the $12 million one-time Japan lease benefit in Q1 2025.

SEGMENT RESULTS

SEGMENT NET SALES

The table below provides net sales by segment for the periods presented:

(in millions, except percentages)

Three Months Ended March 31,

Constant

Currency

vs. 2025(1)

2026

2025

% Change

%
Change

Golf Equipment

$    486.2

$    443.9

9.5 %

8.0 %

Apparel, Gear and Other

201.3

185.7

8.4 %

7.9 %

Net sales

$    687.5

$    629.6

9.2 %

8.0 %

(1)

See "Additional Information and Disclosures—Non-GAAP Information" for the calculation methodology of constant currency measures.

SEGMENT OPERATING INCOME

The table below provides the breakout of segment operating income for the periods presented:

(in millions, except percentages)

Three Months Ended March 31,

2026

2025

Change

Golf Equipment

$    117.6

$    101.8

15.5 %

% of segment net sales

24.2 %

22.9 %

     130  bps

Apparel, Gear and Other

52.0

35.4

46.9 %

% of segment net sales

25.8 %

19.1 %

     670  bps

Total Segment Operating Income (loss)

$    169.6

$    137.2

23.6 %

% of total segment net sales

24.7 %

21.8 %

     290  bps

Total Segment Operating Income Constant Currency Growth (Decline)

18.9 %

The following is a reconciliation on a GAAP basis of total segment operating income to income before income taxes for the periods presented:

Three Months Ended March 31,

(in millions)

2026

2025

$ Change

Total Segment operating income (loss):

$      169.6

$      137.2

$       32.4

Non-recurring expenses (1)

(4.0)

(1.3)

(2.7)

Corporate costs and expenses (2)

(27.4)

(32.8)

5.4

Income (loss) from operations

138.2

103.1

35.1

Interest income (expense), net

(5.8)

(14.9)

9.1

Other income (expense), net

2.9

2.4

0.5

Income (loss) from equity method investments

(27.7)

—

(27.7)

Income (loss) from continuing operations, before income taxes

$      107.6

$        90.6

$       17.0

(1)

Includes certain non-recurring and non-cash items as described in the schedules to this release.

(2)

Includes corporate general and administrative expenses not utilized by management in determining segment profitability. For 2025, Corporate costs and expenses also includes adjustments for discontinued operations related to indirect costs that were previously allocated to the Topgolf and Jack Wolfskin businesses.

BALANCE SHEET AND CASH FLOW HIGHLIGHTS

Inventory decreased $15.3 million year-over-year to $596.4 million, largely driven by timing of shipments. As of March 31, 2026, the Company was in a net cash position with $474 million in debt outstanding and unrestricted cash and cash equivalents of $500 million. On May 1, 2026, upon maturity, the Company settled in full in cash its $258 million of convertible notes. This year through April 30, 2026, the Company has repurchased 5.6 million shares of its common stock at an average cost of $14.08 per share 2026 OUTLOOK

2026 FULL YEAR OUTLOOK

(in millions, except where noted otherwise)

2026

Current Estimate

2026

Previous Estimate

2025

As Reported

Consolidated Net Sales

$2.015 to $2.070B

$1.98B to $2.05B

$2.06B

Adjusted EBITDA (1)

$211 to $233

$170 to $195

$222

(1)

Non-GAAP measure. See "Additional Information and Disclosures—Non-GAAP Information" for more information and the schedules to this press release for reconciliations to the most directly comparable GAAP measure.

2026 SECOND QUARTER OUTLOOK

(in millions)

Q2 2026

Estimate

Q2 2025

As Reported

Consolidated Net Sales

$585 to $610

$600

Adjusted EBITDA (1)

$98 to $108

$92

(1)

Non-GAAP measure. See "Additional Information and Disclosures—Non-GAAP Information" for more information and the schedules to this press release for reconciliations to the most directly comparable GAAP measure.

ADDITIONAL INFORMATION AND DISCLOSURES

Conference Call and Webcast

The Company will be holding a conference call at 2:00 p.m. Pacific time today, May 7, 2026, to discuss the Company's financial results, outlook and business. The call will be webcast live on our investor relations website at https://ir.callawaygolf.com/news-and-events/presentations. The Company's earnings presentation will be available ahead of the call and will include additional details. A replay of the conference call will be available approximately two hours after the call ends. The replay may be accessed through the Investor Relations section of the Company's website at https://ir.callawaygolf.com.

Non-GAAP Information

The GAAP results contained in this press release and the financial statement schedules attached to this press release have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). To supplement the GAAP results, the Company has provided certain non-GAAP financial information as follows:

Constant Currency Basis. The Company provided certain information regarding the Company's financial results or projected financial results on a "constant currency basis" or as "constant currency" results. This information estimates the impact of changes in foreign currency exchange rates on the translation of the Company's current or projected future period financial results as compared to the applicable comparable period. This impact is derived by taking the current or projected local currency results and translating them into U.S. dollars based upon the foreign currency exchange rates for the applicable comparable period. It does not include any other effect of changes in foreign currency rates on the Company's results or business.

Non-Recurring, Non-cash and Interest Expense Adjustments. The Company provided information excluding certain non-cash amortization of acquired intangible assets, including customer and distributor relationships and acquired developed technology related to the Company's acquisitions of TravisMathew and OGIO (together, the "Acquisitions"). While the amortization of acquired intangible assets is excluded from the calculation of non-GAAP net income, the revenue and operating costs associated with these acquired companies is reflected in non-GAAP net income calculations, as well as the acquired assets that contribute to revenue generation. For specific non-recurring adjustment items, please see the Supplemental Financial Information and Non-GAAP Reconciliation section of this release. Non-recurring adjustments include, among other things subtraction of costs related to a plan intended to optimize organizational efficiencies and decrease operating costs under the separate business structures that are anticipated after the separation of Topgolf (the "Transformation Plan"). Costs incurred related to Non-Recurring and Non-Cash Adjustments are excluded from the measurement of segment profitability for internal and external reporting purposes. In addition, we have added back to certain of our non-GAAP results interest expense relating to debt incurred at the corporate level that is categorized under discontinued operations in order to burden continuing operations with the full impact of the Company's total term debt.

Adjusted EBITDA. The Company provides information about its results excluding interest, taxes, depreciation and amortization expenses, stock compensation expense, non-cash lease amortization expense, and the non-recurring and non-cash items referenced above.

In addition, the Company has included in the schedules attached to this release a reconciliation of certain non-GAAP information to the most directly comparable GAAP information. The non-GAAP information presented in this release and related schedules should not be considered in isolation or as a substitute for any measure derived in accordance with GAAP. The non-GAAP information may also be inconsistent with the manner in which similar measures are derived or used by other companies. Management uses such non-GAAP information for financial and operational decision-making purposes and as a means to evaluate period-over-period comparisons and in forecasting the Company's business going forward. Management believes that the presentation of such non-GAAP information, when considered in conjunction with the most directly comparable GAAP information, provides additional useful comparative information for investors in their assessment of the underlying performance, and, in some cases, financial condition, of the Company's business with regard to these items.

For forward-looking Adjusted EBITDA from Continuing Operations, a reconciliation to net income (loss) from continuing operations, the most closely comparable GAAP financial measure, is not provided because the Company is unable to provide such reconciliation without unreasonable efforts. The inability to provide a reconciliation is because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact net income in the future but would not impact Adjusted EBITDA from Continuing Operations. These items may include certain non-cash depreciation, which will fluctuate based on the Company's level of capital expenditures, non-cash amortization of intangibles related to the Company's Acquisitions, income taxes, which can fluctuate based on changes in the other items noted and/or future forecasts, interest expense, which varies based upon the amount of borrowing to fund the business, and other non-recurring costs and non-cash adjustments. Historically, the Company has excluded these items from Adjusted EBITDA from Continuing Operations. The Company currently expects to continue to exclude these items in future disclosures of Adjusted EBITDA from Continuing Operations and may also exclude other items that may arise. The events that typically lead to the recognition of such adjustments are inherently unpredictable as to if or when they may occur, and therefore actual results may differ materially. This unavailable information could have a significant impact on net income.

Equity Method Investments. The Company also removes any income or losses from equity method investments from non-GAAP net income from continuing operations and Adjusted EBITDA.

Forward-Looking Statements

Statements used in this press release that relate to future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company's second quarter and full year 2026 guidance (including net sales, Adjusted EBITDA from Continuing Operations and cash balances), strength and demand of the Company's products and services, continued brand momentum, positioning of the Company's brands to gain market share, demand for golf and outdoor activities and apparel, continued investments in the business, consumer trends and behavior, future industry and market conditions, completion of any share repurchases, including the timing and amount thereof, return of capital to shareholders and positioning to create shareholder value, future liquidity, foreign currency effects and their impacts, tariff and tax rates and the effectiveness of mitigation efforts relating thereto, potential refunds of IEEPA tariffs, and statements of belief and any statement of assumptions underlying any of the foregoing, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "estimate," "could," "would," "should," "intend," "may," "plan," "seek," "anticipate," "project" and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made and are not guarantees of future performance. These statements are based upon current information and expectations. Accurately estimating the forward-looking statements is based upon various risks and unknowns, including uncertainty regarding global economic conditions, including relating to inflation, decreases in consumer demand and spending, and any severe or prolonged economic downturn or economic recession; the Company's level of indebtedness; continued availability of credit facilities and liquidity and ability to comply with applicable debt covenants; effectiveness of capital allocation and cost/expense reduction efforts; continued brand momentum and product success; growth in the direct-to-consumer and e-commerce channels; ability to realize the benefits of the continued investments in the Company's business; consumer acceptance of and demand for the Company's and its subsidiaries' products; any changes in U.S. or foreign trade, tax or other policies, including restrictions on imports or an increase in import tariffs; future retailer purchasing activity, which can be significantly negatively affected by adverse industry and economic conditions and overall retail inventory levels; the level of promotional activity in the marketplace; and future changes in foreign currency exchange rates and the degree of effectiveness of the Company's hedging programs. Actual results may differ materially from those estimated or anticipated as a result of these risks and unknowns or other risks and uncertainties, including the effect of terrorist activity, armed conflict, natural disasters or pandemic diseases on the economy generally, on the level of demand for the Company's and its subsidiaries' products or on the Company's ability to manage its operations, supply chain and delivery logistics in such an environment; delays, difficulties or increased costs in the supply of components or commodities needed to manufacture the Company's products or in manufacturing the Company's products; and a decrease in participation levels in golf generally. For additional information concerning these and other risks and uncertainties that could affect these statements and the Company's business, see the Company's Annual Report on Form 10-K for the year ended December 31, 2025 as well as other risks and uncertainties detailed from time to time in the Company's reports on Forms 10-K, 10-Q and 8-K subsequently filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

About Callaway Golf Company

Callaway Golf Company (NYSE: CALY), is a premium golf equipment, gear and apparel company with a portfolio of global brands, including Callaway Golf, Odyssey, TravisMathew, and OGIO. Through an unwavering commitment to innovation and premium craftsmanship, Callaway designs, manufactures, and sells high-performance golf clubs, golf balls, apparel, bags, and other accessories—setting the standard for performance in the game of golf. For more information, please visit https://ir.callawaygolf.com.

Investor Contact
Patrick Burke
[email protected] 

CALLAWAY GOLF COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

March 31, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$            499.5

$            903.2

Accounts receivable, net

393.8

123.2

Inventories

596.4

625.3

Other current assets

135.6

113.9

Current assets of discontinued operations

—

4,170.0

Total current assets

1,625.3

5,935.6

Property, plant and equipment, net

156.2

159.5

Operating lease right-of-use assets, net

164.5

173.5

Goodwill and intangible assets, net

841.7

842.2

Equity method investments

221.2

—

Other assets, net

171.6

175.2

Total assets

$         3,180.5

$         7,286.0

LIABILITIES

Current liabilities:

Accounts payable and accrued expenses

$            282.9

$            296.2

Accrued employee compensation and benefits

54.2

84.9

Long-term debt, current portion

274.4

765.3

Asset-based credit facilities

44.1

44.7

Operating lease liabilities, short-term

22.6

22.9

Deferred revenue

15.5

21.5

Other current liabilities

19.9

18.5

Current liabilities of discontinued operations

—

3,113.5

Total current liabilities

713.6

4,367.5

Long-term debt, net

152.9

650.7

Operating lease liabilities, long-term

181.1

189.7

Other long-term liabilities

9.0

9.2

Total shareholders' equity

2,123.9

2,068.9

Total liabilities and shareholders' equity

$         3,180.5

$          7,286.0

CALLAWAY GOLF COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

(Unaudited)

Three Months Ended March 31,

2026

2025

Net sales

$          687.5

$           629.6

Cost of sales

360.8

346.0

Gross profit

326.7

283.6

Operating expenses:

Selling, general and administrative expense

173.3

164.6

Research and development expense

15.2

15.9

Total operating expenses

188.5

180.5

Income (loss) from operations

138.2

103.1

Interest income (expense), net

(5.8)

(14.9)

Other income (expense), net

2.9

2.4

Total other income (expense), net

(2.9)

(12.5)

Income (loss) from equity method investments

(27.7)

—

Income (loss) from continuing operations, before income taxes

107.6

90.6

Income tax provision (benefit)

32.7

27.2

Net income (loss) from continuing operations

$            74.9

$             63.4

Net income (loss) from discontinued operations, net of tax

18.2

(61.3)

Net income (loss)

$            93.1

$               2.1

Basic earnings (loss) per common share:

Continuing operations

$            0.41

$             0.35

Discontinued operations

$            0.10

$           (0.33)

Net earnings (loss)

$            0.51

$             0.01

Diluted earnings (loss) per common share:

Continuing operations

$            0.38

$             0.33

Discontinued operations

$            0.09

$           (0.31)

Net earnings (loss)

$            0.47

$             0.02

Weighted-average common shares outstanding:

Basic

183.7

183.4

Diluted

202.7

198.2

CALLAWAY GOLF COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

(In millions)

(Unaudited)

Three Months Ended

March 31,

2026

2025

Cash flows from operating activities:

Net income (loss) from continuing operations

$       74.9

$       63.4

Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used in) operating
activities:

Depreciation and amortization

10.8

11.7

Loss from equity method investments

27.7

—

Amortization of debt discount and issuance costs

0.8

1.5

Gain on lease termination incentive

—

(12.0)

Deferred taxes, net

19.5

22.6

Share-based compensation

6.4

5.9

Loss from partial debt extinguishment

7.5

—

Loss on asset disposals

0.6

—

Unrealized net losses (gains) on hedging instruments and foreign currency

(0.7)

5.2

Gain on investment from golf-related ventures

(4.5)

—

Other

(0.5)

0.2

Change in assets and liabilities, net of business combinations

(311.5)

(207.4)

Net cash provided by (used in) operating activities - continuing operations

(169.0)

(108.9)

Net cash provided by (used in) operating activities - discontinued operations

—

23.7

Net cash provided by (used in) operating activities

(169.0)

(85.2)

Cash flows from investing activities:

Capital expenditures

(7.0)

(7.8)

Proceeds from sale of business line, net of cash retained

818.8

—

Net cash provided by (used in) investing activities - continuing operations

811.8

(7.8)

Net cash provided by (used in) investing activities - discontinued operations

—

(62.2)

Net cash provided by (used in) investing activities

811.8

(70.0)

Cash flows from financing activities:

Repayments of long-term debt

(1,004.3)

(4.6)

Proceeds from credit facilities, net

—

19.9

Debt issuance costs

—

(0.4)

Repayments of financing leases

(0.1)

(0.1)

Acquisition of treasury stock

(42.0)

(3.3)

Net cash provided by (used in) financing activities - continuing operations

(1,046.4)

11.5

Net cash provided by (used in) financing activities - discontinued operations

—

13.6

Net cash provided by (used in) financing activities

(1,046.4)

25.1

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(0.4)

2.5

Net increase (decrease) in cash, cash equivalents and restricted cash

(404.0)

(127.6)

Cash, cash equivalents and restricted cash at beginning of period

903.5

450.3

Cash, cash equivalents and restricted cash at end of period

$     499.5

$     322.7

Less: restricted cash of discontinued operations at end of period

—

(5.7)

Cash and cash equivalents of continuing operations at end of period

$     499.5

$     317.0

CALLAWAY GOLF COMPANY

CONSOLIDATED NET SALES AND OPERATING SEGMENT INFORMATION

(In millions)

(Unaudited)

Net Sales by Product Category

Three Months Ended

March 31,

Growth/(Decline)

Constant

Currency

vs. 2025(1)

2026

2025

Dollars

Percent

Percent

Net sales:

Golf Clubs

$      380.6

$      340.0

$       40.6

11.9 %

10.4 %

Golf Balls

105.6

103.9

1.7

1.6 %

0.3 %

Apparel

102.7

98.0

4.7

4.8 %

5.1 %

Gear, Accessories & Other

98.6

87.7

10.9

12.4 %

11.1 %

Total net sales

$      687.5

$      629.6

$       57.9

9.2 %

8.0 %

(1) Calculated by applying 2025 exchange rates to 2026 reported net sales in regions outside the U.S.

Net Sales by Region

Three Months Ended

March 31,

Growth/(Decline)

Constant

Currency

vs. 2025(1)

2026

2025

Dollars

Percent

Percent

Net sales:

United States

$      448.8

$      416.1

$       32.7

7.9 %

7.9 %

Europe

83.2

64.3

18.9

29.4 %

18.2 %

Asia

103.6

106.8

(3.2)

(3.0 %)

(0.7 %)

Rest of world

51.9

42.4

9.5

22.4 %

15.8 %

Total net sales

$      687.5

$      629.6

$       57.9

9.2 %

8.0 %

(1) Calculated by applying 2025 exchange rates to 2026 reported net sales in regions outside the U.S.

Operating Segment Information

Three Months Ended

March 31,

Growth/(Decline)

Constant

Currency

vs. 2025(1)

2026

2025

Dollars

Percent

Percent

Net sales:

Golf Equipment

$      486.2

$      443.9

$       42.3

9.5 %

8.0 %

Apparel, Gear and Other

201.3

185.7

15.6

8.4 %

7.9 %

Total net sales

$      687.5

$      629.6

$       57.9

9.2 %

8.0 %

Segment operating income:

Golf Equipment

$      117.6

$      101.8

$       15.8

15.5 %

Apparel, Gear and Other

52.0

35.4

16.6

46.9 %

Total segment operating income

169.6

137.2

32.4

23.6 %

Non-recurring items (2)

(4.0)

(1.3)

(2.7)

n/m

Corporate costs and expenses (3)

(27.4)

(32.8)

5.4

(16.5) %

Income (loss) from operations

138.2

103.1

35.1

34.0 %

Interest income (expense), net

(5.8)

(14.9)

9.1

(61.1) %

Other income (expense), net

2.9

2.4

0.5

20.8 %

Total other income (expense), net

(2.9)

(12.5)

9.6

(76.8) %

Income (loss) from equity method investments

(27.7)

—

(27.7)

n/m

Income (loss) from continuing operations, before income taxes

$      107.6

$        90.6

$       17.0

18.8 %

(1) Calculated by applying 2025 exchange rates to 2026 reported net sales in regions outside the U.S.

(2) Includes certain non-recurring and non-cash items as described in the below schedules to this release.

(3) Includes corporate general and administrative expenses not utilized by management in determining segment profitability. Corporate costs and expenses also includes adjustments
     for discontinued operations related to indirect costs that were previously allocated to the Topgolf and Jack Wolfskin businesses.

CALLAWAY GOLF COMPANY

SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATION

(In millions, except per share data)

(Unaudited)

Three months ended March 31,

2026

2025

GAAP

Non-Cash
Acquisition-
related
Amortization

Tax
Valuation
Allowance

Non-
Recurring
Items(1)

(Loss) From
Equity Method
Investments

Non-

GAAP

GAAP

Non-Cash
Acquisition-
related
Amortization

 Non-
Recurring
Items(2)

Non-

GAAP

Net sales

$  687.5

$          —

$         —

$          —

$                —

$ 687.5

$ 629.6

$           —

$          —

$     629.6

Cost of sales

360.8

—

—

1.1

—

359.7

346.0

—

0.3

345.7

Gross profit

$  326.7

$          —

$         —

$        (1.1)

$                —

$ 327.8

$ 283.6

$           —

$        (0.3)

$     283.9

Gross Margin

47.5 %

47.7 %

45.0 %

45.1 %

(1)  Non-recurring items from continuing operations primarily includes $1.0 million of charges incurred to relocate to a new UK warehousing property as a result of the sale of the Jack Wolfskin business in 2025.

(2)  Non-recurring items from continuing operations primarily includes restructuring and reorganization costs.

Three months ended March 31,

2026

2025

GAAP

Non-Cash
Acquisition-
related
Amortization

Tax
Valuation
Allowance (3)

Non-
Recurring
Items(1)

(Loss) From
Equity Method
Investments(4)

Non-

GAAP

GAAP

Non-Cash
Acquisition-
related
Amortization

Non-
Recurring
Items(2)

Non-

GAAP

Income (loss) from operations

$  138.2

$        (0.2)

$         —

$        (3.8)

$                —

$ 142.2

$ 103.1

$        (0.1)

$        (1.2)

$     104.4

Net income (loss) from continuing operations

$    74.9

$        (0.2)

$        0.1

$        (4.4)

$            (32.4)

$ 111.8

$   63.4

$           —

$         6.3

$       57.1

(1)  Non-recurring items from continuing operations primarily includes $7.5 million of other expense related to the continuing operations portion of the $15.0 million write off of debt issuance costs due to the $1.0 billion partial repayment of the term
     loan in January 2026 in connection with the sale of Topgolf, $1.0 million of costs related to the relocation to a new UK warehouse as a result of the sale of the Jack Wolfskin business in 2025, $1.0 million of restructuring charges related to the
     Transformation Plan and a $0.7 million write-off of software assets stemming from our separation from Topgolf. These costs were partially offset by a $4.3 million gain on our investment in Five Iron.

(2)  Non-recurring items from continuing operations primarily include $0.7 million of restructuring charges related to the Transformation Plan. In addition, $9.5 million of term loan interest expense incurred at the corporate level and included in
     discontinued operations is reflected as part of continuing operations in order to show the full effect of consolidated interest expense.

(3)  During the first quarter of fiscal year 2026, we released valuation allowances on certain U.S. deferred tax assets in both continuing and discontinued operations related to the disposal of the Topgolf and Jack Wolfskin businesses.

(4)  Represents our 40% proportionate share of Topgolf's net loss, which is accounted for under the equity method.

Three months ended March 31,

2026

2025

GAAP

Non-Cash
Acquisition-
related
Amortization

Tax
Valuation
Allowance

Non-
Recurring
Items

(Loss) From
Equity Method
Investments

Non-

GAAP

GAAP

Non-Cash
Acquisition-
related
Amortization

Non-
Recurring
Items

Non-

GAAP

Diluted earnings (loss) per share from
continuing operations (1)

$   0.38

$          —

$         —

$       (0.02)

$             (0.16)

$   0.56

$   0.33

$           —

$        0.03

$      0.30

Weighted-average shares outstanding - diluted

202.7

202.7

202.7

202.7

202.7

202.7

198.2

198.2

198.2

198.2

(1)  When aggregated, earnings per share amounts may not add across due to rounding.

CALLAWAY GOLF COMPANY

SUPPLEMENTAL FINANCIAL INFORMATION AND NON-GAAP RECONCILIATION

(In millions, except per share data)

(Unaudited)

2026 Trailing Twelve Month Adjusted EBITDA

2025 Trailing Twelve Month Adjusted EBITDA

Quarter Ended

Quarter Ended

June 30,

September 30,

December 31,

March 31,

June 30,

September 30,

December 31,

March 31,

2025

2025

2025

2026

Total

2024

2024

2024

2025

Total

Net income (loss) from continuing operations

$         45.5

$         (4.1)

$        (66.0)

$         74.9

$     50.3

$         99.4

$         31.0

$        (93.9)

$          63.4

$     99.9

Interest expense (income), net

15.3

14.8

15.6

5.8

51.5

15.9

15.1

14.7

14.9

60.6

Income tax provision (benefit)

13.1

2.7

5.8

32.7

54.3

(17.8)

(34.8)

62.2

27.2

36.8

Non-cash depreciation and amortization
expense

11.2

10.8

10.4

10.8

43.2

10.9

11.3

11.8

11.7

45.7

Non-cash stock compensation and stock
warrant expense, net

5.4

5.8

6.7

6.5

24.4

6.0

5.6

7.1

5.9

24.6

Non-cash lease amortization expense

0.6

0.3

0.1

(0.5)

0.5

0.6

0.4

0.4

0.6

2.0

Acquisitions & non-recurring items, before
income taxes(1)

0.9

0.3

2.3

5.8

9.3

1.7

1.2

2.1

1.2

6.2

Loss from equity method investments

—

—

—

27.7

27.7

—

—

—

—

—

Adjusted EBITDA

$         92.0

$         30.6

$        (25.1)

$        163.7

$    261.2

$        116.7

$         29.8

$          4.4

$         124.9

$    275.8

(1) In 2026, amounts primarily relate to the write-off of a proportionate amount debt issuance costs due to the $1.0 billion partial repayment of term loan debt in January 2026 in connection with the sale of Topgolf, charges
     incurred to relocate to a new UK warehouse in connection with the sale of the Jack Wolfskin business, the write-off of IT assets stemming from the sale of Topgolf, and restructuring charges related to the Transformation
     Plan, partially offset by remeasurement gains on our cost method investment and gains on the disposal of intellectual property.  In 2025, amounts primarily include restructuring and reorganization charges related to the
     Transformation Plan. In 2024, amounts primarily include restructuring and reorganization charges related to the Transformation Plan, IT integration costs associated with the implementation of a new cloud based HRM
     system, IT costs related to a cybersecurity incident, and costs incurred to centralize warehousing and distribution operations to achieve synergies in connection with the Company's acquisitions.

SOURCE Callaway Golf Company