Topgolf Callaway 2025 Q2 Earnings Mixed Results as Net Income Falls 67%

Topgolf Callaway reported Q2 2025 earnings on August 7, delivering mixed results that beat revenue expectations but saw a significant drop in earnings. Despite a 4.1% revenue decline year-over-year, the company exceeded analysts’ revenue forecasts, and it raised full-year guidance for its ongoing operations. However, net income and EPS both fell sharply, reflecting continued pressure in the Topgolf and apparel segments.

Revenue
The total revenue for Topgolf Callaway dropped 4.1% to $1.11 billion in 2025 Q2, compared to $1.16 billion in the same period last year. The decline was partially attributable to the divestiture of the Jack Wolfskin apparel segment. The venues division contributed $468 million, while the golf clubs segment brought in $312.70 million. Golf balls, apparel, and gear and accessories added $98.90 million, $123.70 million, and $89.90 million, respectively. Additional business lines accounted for $17.30 million, rounding out the consolidated revenue to $1.11 billion.

Earnings/Net Income
Topgolf Callaway’s EPS fell 67.6% to $0.11 in 2025 Q2, compared to $0.34 in the prior-year period, while net income dropped 67.3% to $20.30 million from $62.10 million. The company has maintained profitability for over 20 years, demonstrating strong resilience amid ongoing challenges.

Price Action
The stock price of Topgolf Callaway edged down 1.54% during the latest trading day but gained 3.35% over the most recent full week and rose 9.38% month-to-date.

Post Earnings Price Action Review
Despite beating revenue estimates, the stock fell sharply by 10.2% post-earnings, with analysts downgrading the stock to “sell.” The positive revenue beat and strong historical performance of the company, including four out of four quarters exceeding EPS and revenue estimates, suggest potential for future appreciation. However, the revised price target and volatility indicate caution. With a 30-day holding strategy, investors may benefit from the anticipated year-over-year earnings jump of 550% in the next quarter, although short-term fluctuations remain a risk.

CEO Commentary
CEO Chip Brewer highlighted the continued strength in the golf equipment business, the success of value programs at Topgolf venues, and the benefits of gross margin and cost savings initiatives. He expressed optimism about absorbing increased tariffs and raising the full-year outlook for ongoing operations, attributing recent results to improved consumer demand and strategic actions.

Guidance
The company raised full-year 2025 guidance for its continuing operations, with updated expectations excluding the Jack Wolfskin segment. While the full guidance details were not specified, the company indicated improved revenue and adjusted EBITDA expectations, reflecting a more optimistic outlook despite ongoing challenges.

Additional News
Topgolf Callaway’s stock rallied 8.8% on August 8, 2025, following better-than-expected earnings results and positive news from its Topgolf segment. Although revenue declined 4.1% year-over-year, the adjusted EPS of $0.24 exceeded analyst expectations, and management raised full-year guidance for Topgolf. The company is also pursuing the spinoff of 80% of its Topgolf segment, though the timeline has been pushed to early 2026 due to the recent resignation of Topgolf’s CEO. The delay and strategic focus on value creation through the spinoff could further impact investor sentiment and stock performance.