NYSE$CALY

Callaway Golf Company · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$924M

Previous: $897M+3.0%
EPS (adj)

-$0.33

Previous: -$0.30-10.0%
Non-GAAP Adjusted EBITDA

$101M

Previous: $69.8M+45.3%
Total Segment Operating Income

$47.8M

Previous: $23.4M+104.3%
Available Liquidity

$797M

No prior period
Topgolf Same Venue Sales Growth

-8.0%

No prior period
Inventory

$757M

Previous: $794M-4.7%
Net Income

-$1.51B

Previous: -$77.1M-1862.0%
Operating Income

-$1.46B

Previous: -$32.6M-4381.0%

Revenue & EPS history

Topgolf Callaway · Revenue · Quarterly

$924M

Q4 2024+3%vs Q4 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Topgolf Callaway · $1.04B total across 3 segments · Q3 2023

  • Topgolf
    $448M+8.2%
  • Active Lifestyle
    $300M+7.7%
  • Golf Equipment
    $293M-1.1%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.1%

Avg return

Earnings day

-1.6%

Avg return

5 days after

+1.5%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+18.7%

Q3 2013

Best reaction

-20.8%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+6.3%+0.1%
Q3 2025+14.4%+14.3%+24.2%
Q1 2025-17.2%-11.4%+0.0%
Q4 2024-0.3%-2.5%+3.0%
Q3 2024-11.3%-11.6%-17.1%
Q2 2024-14.5%-18.4%-27.1%
Q1 2024-8.2%-8.0%-7.6%
Q4 2023+5.6%+3.6%-6.3%
Q3 2023-20.8%-22.9%-1.6%
Q2 2023-9.8%-10.6%-12.6%
Q1 2023-13.9%-20.9%-11.4%
Q4 2022-4.0%-1.1%-6.6%
Q3 2022+5.5%+6.2%+23.6%
Q2 2022-2.0%-5.9%-5.8%
Q1 2022+8.1%+18.2%+22.2%
Q4 2021-9.6%-1.7%-10.9%
Q3 2021+2.0%+0.7%-2.9%
Q2 2021-4.2%-11.4%-16.7%
Q1 2021+8.9%+8.6%+14.9%
Q4 2020-2.3%-4.7%-1.6%
Q3 2020+5.5%-2.3%+34.6%
Q2 2020-6.9%-5.7%+2.9%
Q1 2020+2.8%-9.2%+28.4%
Q4 2019-6.7%-3.7%-38.3%
Q3 2019-1.5%-3.5%+1.2%
Q2 2019+10.6%+8.3%+5.3%
Q1 2019-5.2%-5.2%-6.9%
Q4 2018-4.2%-6.6%+3.6%
Q3 2018-2.5%-4.4%-12.3%
Q2 2018+13.1%+13.3%+18.7%
Q1 2018+7.5%+3.2%+13.8%
Q4 2017+3.6%+4.4%+8.8%
Q3 2017+3.4%+1.0%+0.1%
Q2 2017+7.1%+3.5%+9.2%
Q1 2017+7.7%+6.6%+7.8%
Q4 2016-8.4%-7.7%-7.5%
Q3 2016+11.5%+16.0%+18.1%
Q2 2016+0.1%+2.5%+9.3%
Q1 2016-0.6%
Q4 2015+4.6%
Q3 2015+7.5%
Q2 2015+8.0%
Q1 2015+0.6%
Q4 2014+4.9%
Q3 2014+12.1%
Q2 2014-8.5%
Q1 2014-7.7%
Q4 2013-6.4%
Q3 2013+18.7%
Q2 2013+6.1%
Q1 2013+3.7%
Q4 2012+0.2%
Q3 2012-7.6%
Q2 2012+3.7%
Q1 2011-12.2%
Q1 2012+5.5%
Q4 2009-0.3%
Q4 2011-0.3%
Q3 2011+2.0%
Q3 2010+2.0%
Q4 2010-1.4%
Q2 2011-1.4%
Q2 2010-1.4%
Q1 2010+0.6%

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