Callaway Golf 2Q adj. EBITDA $124.9M, est. $105.6M

Callaway Golf Company (NYSE: CALY) reported adjusted EBITDA of $124.9 million for the second quarter, exceeding the estimated range of $105.6 million. The company’s performance was driven by strong results across its segments, particularly in Topgolf, which saw 16.6% revenue growth year-over-year. The Golf Equipment segment maintained steady performance, with strong market share gains and improved supply chain efficiency. Meanwhile, the Active Lifestyle segment faced challenges due to foreign currency impacts and timing of wholesale shipments, though it still posted 13.3% revenue growth in the first half of the year.

On a non-GAAP basis, the company’s income from operations decreased by 3.4%, primarily due to higher interest expenses and planned operational investments. Adjusted EBITDA slightly exceeded guidance for the quarter, despite unfavorable foreign currency effects. The company reaffirmed its full-year 2023 guidance revenue and Adjusted EBITDA, maintaining confidence in its long-term growth trajectory.

Looking ahead, Callaway Golf remains on track to generate free cash flow in 2023, with continued momentum in both on-course and off-course golf activities. The company’s ability to navigate macroeconomic uncertainties and maintain operational efficiency positions it as a key player in the leisure and consumer discretionary sectors.