Callaway Golf Company · NYSE:CALY
Callaway Golf — Topgolf Callaway Brands — Q2 2025 Earnings Presentation
27 slides from Callaway Golf's earnings presentation, Aug 6, 2025
Slide 1: Second Quarter 2025 Earnings Conference Call
Second Quarter 2025 Earnings Conference Call August 6, 2025
Slide 2: Important Notices
IMPORTANT NOTICES Forward-looking Statements. During the presentation, any comments made about future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company’s financial outlook (including, among others, Company, Topgolf and cor
Slide 3: Q2 2025 Highlights
Q2 consolidated Net Revenue of $1.1 billion and Adjusted EBITDA of $196 million both exceeded expectations. Q2 2025 Announced completion of sale of Jack Wolfskin, further strengthening the Company’s available liquidity position by 48% Highlights to over $1.1 billion. Updates total Company guidance t
Slide 4: Q2 2025 Financial Results
Q2 2025 FINANCIAL RESULTS Q2 NON-GAAP RESULTS1 ($ in millions, except per share data) Q2 2025 Q2 2024 Change (%) Net Revenues $ 1,110.5 $ 1,157.8 (4)% Net Income $ 45.6 $ 83.1 (45)% Diluted Earnings Per Share $ 0.24 $ 0.42 (45)% Adjusted EBITDA $ 195.8 $ 205.6 (5)% Note: Numbers may not foot due to
Slide 5: Raising Total Company 2025 Revenue Guidance Ex-Jack Wolfskin
RAISING TOTAL COMPANY 2025 REVENUE GUIDANCE EX-JACK WOLFSKIN Prior revenue guidance excluding Jack Wolfskin (June – Dec) ($ in M) $4,093 $3,828 ($265) • Topgolf revenue increased ~$5M due to improved SVS outlook, partially offset by timing in new venue openings Prior 2025 Guidance Jack Wolfskin (Jun
Slide 6: Raising Total Company 2025 Adj EBITDA Guidance Ex-Jack Wolfskin
RAISING TOTAL COMPANY 2025 ADJ EBITDA GUIDANCE EX-JACK WOLFSKIN Prior Adj EBITDA guidance excluding Jack Wolfskin (June – Dec) ($ in M) $460 $434 ($26) • Topgolf EBITDA increased ~$10M due to improved SVS, labor savings Prior 2025 Guidance Jack Wolfskin (June - Dec) Prior 2025 Guidance Excl. JW in t
Slide 7: 2025 Total Company Outlook
2025 TOTAL COMPANY OUTLOOK FULL YEAR 20251 Q3 20251 Q3 2024 Current FY 2025 Prior FY 2025 FY 2024 ($ in millions) Q3 2025 Q3 2024 ($ in millions, except per share data) Results (Excl. Guidance Guidance Results Guidance Results Jack Wolfskin) Consolidated Net Revenue $3.80 - $3.92B $4.000 - $4.185B $
Slide 8: Segment Highlights
SEGMENT HIGHLIGHTS TOPGOLF Same venue visits inflected PIEtonow in all positive U.S. venues growth golf in Q2, consumer Sold over 2x the exceptnumber U.S. rounds played inFun of Summer 2023 Approximately flat year- over-year EBITDAR increasing 6% strong remains year-over- and +4% vs. Passes year-ove
Slide 9: Recent Brand Highlights
RECENT BRAND HIGHLIGHTS TOPGOLF GOLF EQUIPMENT ACTIVE LIFESTYLE TravisMathew Released Limited Announced The Fantastic Four: First Happy Gilmore 2 Limited Edition Edition Pro Plus Golf Shoe in Steps Topgolf Experience Products & Opus Spin Pocket Wedges Partnership with Guinness 9
Slide 10: Same Venue Sales
SAME VENUE SALES Q1 Q2 Total1 ’25 vs ’24 -12% -6% ’24 vs ’23 -7% -8% Trends continue to Total Stacked -19% -14% improve in July, driven 1-2 Bay2 by new value initiatives ’25 vs ’24 -12% -5% ’24 vs ’23 -5% -8% ’25 vs ’24 ‘ Q1 Q2 July5 Total Stacked -17% -13% Total SVS -12% -6% Approx. -3% 3+ Bay3 SVV
Slide 11: Topgolf Continues to Win in Fun, F&B, and Atmosphere
TOPGOLF CONTINUES TO WIN IN FUN, F&B, AND ATMOSPHERE1 Driver Topgolf Ranking Fun #1 Atmosphere #1 External research shows Topgolf is winning in Fun, F&B Food & Drink #1 and Atmosphere and has an opportunity in Value #16 Price and Value Price #19 1. HundredX data representing a set of 21 peers for tr
Slide 12: Full Year Key Metrics & Outlook
FULL YEAR KEY METRICS & OUTLOOK ($ in millions)1 Topgolf Non-Topgolf3 Total Adjusted EBITDA $280 $180 $460 Non-GAAP Depreciation & Amortization $260 Non-GAAP Topgolf D&A $207 $207 Non-GAAP Non-Topgolf D&A $53 $53 Non-GAAP Interest Expense2 $238 Non-GAAP Venue Financing Interest (Venue Financing Cash
Slide 13: Q2 Key Metrics
Q2 KEY METRICS ($ in millions)1 Topgolf Non-Topgolf Total Non-GAAP Operating Income $55 $66 $121 Non-GAAP Depreciation and Amortization $51 $13 $64 Non-Cash Lease Amortization Expense2 $3 $0 $3 Non-Cash Stock Comp Expense $2 $5 $7 Other Income $0 $1 $1 Adjusted Segment EBITDA $111 $85 $196 Less: Ven
Slide 14: Key Balance Sheet and Liquidity Metrics
KEY BALANCE SHEET AND LIQUIDITY METRICS Metric1 As of June 30, As of June 30, Metric1 Six months ended June Six months ended June ($ in millions) 2025 2024 ($ in millions) 30, 2025 30, 2024 Cash and Cash Equivalents $684 $312 Gross Capital Expenditures2 $144 $149 Inventory $609 $647 Net Capital Expe
Slide 15: Appendix
APPENDIX
Slide 16: Net Debt Leverage, Adjusted for REIT Financing
NET DEBT LEVERAGE, ADJUSTED FOR REIT FINANCING ($ in millions) June 30, 2025 June 30, 2024 Total Principal – Long term debt & ABL credit facilities $1,535.3 $1,550.6 Deemed landlord financing obligations $1,239.7 $1,096.6 Topgolf venue financing liabilities $296.0 $285.0 Equipment financing lease li
Slide 17: 2024 Topgolf US Venue EBITDAR to Total Adj. EBITDA Walk
2024 TOPGOLF US VENUE EBITDAR TO TOTAL ADJ. EBITDA WALK Notes: • Corporate overhead: includes Finance/Accounting, Supply Chain, Tech, Legal & HR. • Venue overhead: Construction team, National Directors of Operations, call center, venue training, marketing & event sales teams. $1,809 • Other business
Slide 18: 2024 Same Venue Sales
2024 SAME VENUE SALES Q1 Q2 Q3 Q4 FY24 Total1 ’24 vs ’23 -7% -8% -11% -8% -9% 1-2 Bay2 ’24 vs ’23 -5% -8% -9% -10% -8% 3+ Bay3 ’24 vs ’23 -16% -9% -19% -5% -11% Note: Numbers may not foot due to rounding. 1. Same venue sales (SVS) represents sales for the comparable venue base, which is defined as t
Slide 19: Jack Wolfskin Financial Results
JACK WOLFSKIN FINANCIAL RESULTS 2024 2025 1H Revenue $132 $95 – actual 1H Adj EBITDA $(27) $(13) – actual Full Year Revenue1 $355 $360 – previous guidance Full Year Adj. EBITDA1 $(8) $13 – previous guidance 1. 2025 full year revenue and adjusted EBITDA represents previous guidance. 19
Slide 20: Definitions of Certain Financial Measures
DEFINITIONS OF CERTAIN FINANCIAL MEASURES Adjusted EBITDA Less Venue Financing Cash Interest - a non-GAAP measure calculated as Adjusted EBITDA less Venue Financing Cash Interest obligations. Adjusted EBITDA Margin - a non-GAAP measure calculated as Adjusted EBITDA divided by revenue. Available Liqu
Slide 21: Segment Operating Income
SEGMENT OPERATING INCOME Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 Change 2025 2024 Change Topgolf $ 55.4 $ 56.1 (1.2) % $43.5 $59.0 (26.3) % % of segment revenue 11.4 % 11.3 % 10 bps 4.9 % 6.4 %
Slide 22: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Three Months Ended June 30, 2025 2024 Non-Cash Non-Cash Acquisition Acquisition related Non-Recurring Non- related Non-Recurring Non- GAAP Amortization Items(1) GAAP GAAP Amortization Items(2)
Slide 23: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Six Months Ended June 30, 2025 2024 Non-Cash Non-Cash Acquisition Acquisition related Non-Recurring Non- related Non-Recurring Non- GAAP amortization Items(1) GAAP GAAP amortization Items(2) GA
Slide 24: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) 2025 Trailing Twelve Month Adjusted EBITDA 2024 Trailing Twelve Month Adjusted EBITDA Quarter Ended Quarter Ended September 30, December 31, March 31, June 30, September 30, December 31,
Slide 25: Topgolf Adjusted EBITDA Reconciliation
TOPGOLF ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Twelve Months Ended Three Months Ended June 30, Six Months Ended June 30, December 31, 2025 2024 2025 2024 2024 Topgolf Segment operating income(1): $ 55.4 $ 56.1 $ 43.5 $ 59.0 $
Slide 26: Jack Wolfskin Adjusted EBITDA Reconciliation
JACK WOLFSKIN ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Twelve Months Ended Six Months Ended June 30, December 31, 2025 2024 2024 Active Lifestyle Segment operating income $ 51.1 $ 39.4 $ 82.4 Less: Operating income for other Ac
Slide 27: Thank You!
THANK YOU!
Topgolf Callaway Brands — Q2 2025 Earnings Presentation on 6ix