Callaway Golf Company · NYSE:CALY
Callaway Golf — Q1 2026 Earnings Presentation
17 slides from Callaway Golf's earnings presentation, May 7, 2026
Slide 1: Callaway Golf Company First Quarter 2026 Earnings Conference Call
Callaway Golf Company First Quarter 2026 Earnings Conference Call May 7, 2026 1
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, revenues, the Non-GAAP P
Slide 3: Highlights
HIGHLIGHTS Q1 Net Sales, Non-GAAP Net Income from Cont Ops and Adjusted EBITDA increased 9%, 96% and 31% year-over-year, respectively. Q1 Non-GAAP Gross Margin increased 260 basis points year-over- year. Repurchased $79 million of outstanding common shares through April 2026, including $75 million i
Slide 4: The Game of Golf Starts Strong in 2026
THE GAME OF GOLF STARTS STRONG IN 2026 Healthy Golf Market Fundamentals • U.S. rounds played in Q1 were up 4.9% • U.S. estimated golf equipment sell through at key accounts was up low to mid single digits in Q1 • U.S. estimated OEM shipments were up ~2% in Q1 • Japan market was down slightly in Q1 •
Slide 5: Recent Brand Highlights
RECENT BRAND HIGHLIGHTS • MyGolfSpy has recognized Quantum Max, Triple Diamond and Max D as the 3 longest Drivers of 2026 • In March, our new Quantum fairway woods helped us return to the #1 fairway wood in Asia • U.S. golf ball market share in March was up 350 bps year- over-year and set a new reco
Slide 6: 2026 Outlook
2026 OUTLOOK FULL YEAR 20261 Q2 20261 Current FY Prevoius FY FY 2025 Q2 2026 Q2 2025 ($ in millions) 2026 Guidance 2026 Guidance Results2 ($ in millions) Guidance Results2 Consolidated Net Sales $2,015 to $2,070 $1,980 to $2,050 $2,060 Consolidated Net Sales $585 to $610 $600 Consolidated Adjusted $
Slide 7: Updated Full Year 2026 Guidance Walk
UPDATED FULL YEAR 2026 GUIDANCE WALK 2026 Net Sales Guidance Range v of $2,015 – 2,070M (Midpoint) $28 $2,043 $2,015 Net Sales increased $28M at the midpoint due v sales growth trends to stronger than expected Prev Guidance Strong Demand Updated Guidance 2026 Adjusted EBITDA Guidance v Range of $211
Slide 8: Resilience of Core Golfer in Economic Downturns
RESILIENCE OF CORE GOLFER IN ECONOMIC DOWNTURNS 1. US Golf Datatech combined channel on-course and off-course, excluding sporting goods, mass channel, club, and some ecommerce, through 12/31/2025. 2. US Golf Datatech and the National Golf Foundation estimated rounds played data through 12/31/2025. 8
Slide 9: First Quarter 2026 Financial Results
FIRST QUARTER 2026 FINANCIAL RESULTS Q1 2026 NON-GAAP RESULTS1 ($ in millions, except per share data) Q1 2026 Q1 2025 Change (%) Net Sales $ 687.5 $ 629.6 9% Net Income (Loss) From Continuing $ 111.8 $ 57.1 96 % Operations Diluted Earnings (Loss) Per Share $ 0.56 $ 0.30 87 % From Continuing Operatio
Slide 10: First Quarter 2026 Segment Financial Results
FIRST QUARTER 2026 SEGMENT FINANCIAL RESULTS Q1 2026 NET SALES ($ in millions) Q1 2026 Q1 2025 Change (%) Golf Equipment $ 486.2 $ 443.9 10 % Golf Club $ 380.6 $ 340.0 12 % Golf Ball $ 105.6 $ 103.9 2% Apparel, Gear and Other $ 201.3 $ 185.7 8% Apparel $ 102.7 $ 98.0 5% Gear and Other $ 98.6 $ 87.7
Slide 11: First Quarter 2026 Regional Results
FIRST QUARTER 2026 REGIONAL RESULTS Q1 2026 NET SALES Constant Currency ($ in millions) Q1 2026 Q1 2025 Change (%) vs. 2025 United States $ 448.8 $ 416.1 8% 8% Europe $ 83.2 $ 64.3 29 % 18 % Asia $ 103.6 $ 106.8 (3) % (1) % Rest of World $ 51.9 $ 42.4 22 % 16 % Note: Consolidated numbers represent r
Slide 12: Net Debt Leverage
NET DEBT LEVERAGE May 1, 2026 (Pro-Forma) March 31, 2026 March 31, 2025 Total Principal – Long term debt & ABL credit facilities $ 215.5 $ 473.8 $ 1,494.0 Equipment financing lease liabilities 1.1 1.1 0.6 Less: Unrestricted cash (241.2) (499.5) (317.0) Total Net Debt 1 $ (24.6) $ (24.6) $ 1,177.6 Tr
Slide 13: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY Reinvest in the business to unlock high ROl embedded growth Maintain a healthy balance sheet by prudently managing leverage Expect to end 2026 with a net cash to zero net leverage position Return capital to shareholders through buybacks $200 million repurchase authorizati
Slide 14: Appendix
Appendix . NOTHING®BEATS THIS
Slide 15: Segment Operating Income
SEGMENT OPERATING INCOME Supplemental Financial Information ($ in millions, except percentages) (Unaudited) (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
Slide 16: Full Year Non-GAAP Reconciliation
FULL YEAR NON-GAAP RECONCILIATION Supplemental Financial Information Three Months Ended March 31, ($ in millions) 2026 2025 Non-Cash Non-Cash Acquisition- (Loss) from Acquisition- Non- related Tax Valuation Non-Recurring Equity Method Non- related Recurring Non- GAAP Amortization Allowance Items(1)
Slide 17: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions) 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 20
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