Callaway Golf Company · NYSE:CALY

Callaway Golf — Topgolf Callaway Brands — Q1 2025 Earnings Presentation

23 slides from Callaway Golf's earnings presentation, May 12, 2025

  1. Slide 1: First Quarter 2025 Earnings Conference Call

    First Quarter 2025 Earnings Conference Call May 12, 2025

  2. 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

  3. Slide 3: Q1 2025 Highlights

    Q1 consolidated Net Revenue of $1,092 million and strong Adjusted EBITDA both outperformed expectations. Q1 Total Segment Operating Income increased 9.7%. Q1 2025 Highlights The Company further strengthened its available liquidity position to $805 million, increasing by 12% year-over-year. The Compa

  4. Slide 4: Q1 2025 Financial Results

    Q1 2025 FINANCIAL RESULTS Q1 NON-GAAP RESULTS1 ($ in millions, except per share data) Q1 2025 Q1 2024 Change (%) Net Revenues $ 1,092.3 $ 1,144.2 -5 % Net Income $ 20.3 $ 14.4 +41 % Earnings Per Share $ 0.11 $ 0.08 +42 % Adjusted EBITDA $ 167.3 $ 160.9 +4 % Note: Numbers may not foot due to rounding

  5. Slide 5: Segment Highlights

    SEGMENT HIGHLIGHTS TOPGOLF Sunday Funday has shown PIE nowU.S.in all encouraging golfvenues consumer traffic Player exceptU.S. growth, experience rounds played in 2023 Topgolf Nights is driving metrics continue +4% year-over-yearto late night utilization and driving 20%+ Las Vegas improvements remai

  6. Slide 6: Recent Brand Highlights

    RECENT BRAND HIGHLIGHTS TOPGOLF GOLF EQUIPMENT ACTIVE LIFESTYLE Topgolf rolled out more compelling Min Woo Lee wins 2025 Texas TravisMathew launched third Reggie and accessible value options Children’s Houston Open Bush collection, “Legacy Reclaimed” 6

  7. Slide 7: Same Venue Sales

    SAME VENUE SALES Q1 Total1 ’25 vs ’24 -12% ’24 vs ’23 -7% Improved trends in April Total Stacked -19% 1-2 bay, driven by new value initiatives 1-2 Bay2 ’25 vs ’24 -12% ’24 vs ’23 -5% ’25 vs ’24 ‘ Q1 April Total Stacked -17% 1-2 Bay SVS -12% -8% 3+ Bay3 SVV4 -8% + Low Single Digits ’25 vs ’24 -13% SP

  8. Slide 8: 2025 Total Company Outlook

    2025 TOTAL COMPANY OUTLOOK FULL YEAR 20251 Q2 20251 Current FY 2025 Prior FY 2025 FY 2024 Q2 2025 Q2 2024 ($ in millions, except per share data) Guidance Guidance Results ($ in millions) Guidance Results Consolidated Net Revenue $4.000 - $4.185B $4.000 - $4.185B $4.24B Net Revenue $1.075 - $1.115B $

  9. Slide 9: Full Year Key Metrics & Outlook

    FULL YEAR KEY METRICS & OUTLOOK ($ in millions, except for EPS)1 Topgolf Non-Topgolf3 Total Adjusted EBITDA $270 $190 $460 Non-GAAP Depreciation & Amortization $275 Non-GAAP Topgolf D&A $213 $213 Non-GAAP Non-Topgolf D&A $62 $62 Non-GAAP Interest Expense2 $238 Non-GAAP Venue Financing Interest (Venu

  10. Slide 10: Q1 Key Metrics

    Q1 KEY METRICS ($ in millions)1 Topgolf Non-Topgolf Total Non-GAAP Operating Income -$12 $100 $88 Non-GAAP Depreciation and Amortization $52 $15 $67 Non-Cash Lease Amortization Expense2 $3 $0 $3 Non-Cash Stock Comp Expense $1 $6 $7 Other Income $0 $2 $2 Adjusted Segment EBITDA $44 $123 $167 Less: Ve

  11. Slide 11: Key Balance Sheet and Liquidity Metrics

    KEY BALANCE SHEET AND LIQUIDITY METRICS Three Months Three Months Metric1 As of March 31, As of March 31, Metric1 Ended March 31, Ended March 31, ($ in millions) 2025 2024 ($ in millions) 2025 2024 Cash and Cash Equivalents $317 $234 Gross Capital Expenditures2 $70 $65 Inventory $654 $703 Net Capita

  12. Slide 12: Appendix

    APPENDIX

  13. Slide 13: Net Debt Leverage, Adjusted for REIT Financing

    NET DEBT LEVERAGE, ADJUSTED FOR REIT FINANCING ($ in millions) March 31, 2025 March 31, 2024 Total Principal – Long term debt & ABL credit facilities $1,538.2 $1,613.5 Topgolf Venue Financing Liabilities $304.6 $289.6 Deemed Landlord Financing Obligations $1,211.9 $1,013.8 Equipment Financing lease

  14. Slide 14: The Core Golfer Has Remained Resilient in Economic Downturns

    THE CORE GOLFER HAS REMAINED RESILIENT IN ECONOMIC DOWNTURNS 1. US Golf Datatech combined channel on-course and off-course, excluding sporting goods, mass channel, club, and some ecommerce, through 12/31/2021. 2. US Golf Datatech and the National Golf Foundation estimated rounds played data through

  15. Slide 15: 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 and Atmosphere and Food & Drink #2 has an opportunity in Price and Value Value #15 Price #18 1. HundredX data representing a set of 21 peers for tr

  16. Slide 16: Venue Return Metrics Remain Strong

    VENUE RETURN METRICS REMAIN STRONG Returns on Venues Open For 5 or More Years MEAN RETURNS Mean Cash-on-Cash Returns1 ~50% Mean Return on Gross Investment2 ~20% Venue return metrics remain within target ranges, despite softer same venue sales trends Note: Data represents pre-2020 venues as of 2024 1

  17. Slide 17: 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

  18. Slide 18: 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. Adjusted Free

  19. Slide 19: Segment Operating Income

    SEGMENT OPERATING INCOME Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Three Months Ended March 31, 2025 2024 Change Topgolf $ (11.9) $ 2.9 n/m % of segment revenue (3.0) % 0.7 % (370) bps Golf Equipment 101.6 82.1 23.8 % % of segment revenue 22.9 % 18.2 % 470 bp

  20. Slide 20: Non-GAAP Reconciliation

    NON-GAAP RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Three Months Ended March 31, 2025 2024 Non-Cash Non-Cash Acquisition Acquisition related Non-Recurring Non- related Non-Recurring Non- GAAP Amortization(1) Items(2) GAAP GAAP Amortization(1) It

  21. Slide 21: 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 June 30, September 30, December 31, March 31, June 30, September 30, Dec

  22. Slide 22: Topgolf Adjusted EBITDA Reconciliation

    TOPGOLF ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Twelve Months Ended Three Months Ended March 31, December 31, 2025 2024 2024 Topgolf Segment operating (loss) income(1): $ (11.9) $ 2.9 $ 114.2 Depreciation and amortization expe

  23. Slide 23: Thank You!

    THANK YOU!

Topgolf Callaway Brands — Q1 2025 Earnings Presentation on 6ix