Topgolf Callaway Exceeds Q2 Sales Projections Despite 4.1% YoY Decline

Topgolf Callaway (NYSE:MODG) reported Q2 revenue of $1.11 billion, beating estimates by 1.7%, despite a 4.1% YoY decline. Non-GAAP profit of $0.24 per share was significantly above analysts' estimates. However, the company dropped its revenue guidance for the full year to $3.86 billion, a 5.7% decrease, and EBITDA guidance for the full year is $460 million, above analyst estimates of $437 million.

Topgolf Callaway Brands Corp (NYSE: MODG) reported its second-quarter (Q2) 2025 financial results, highlighting a robust performance despite a year-over-year decline in revenue. The company's Q2 revenue reached $1.11 billion, exceeding analysts' expectations by 1.7%, despite a 4.1% year-over-year decrease. Non-GAAP earnings per share (EPS) of $0.24 were significantly above analysts' estimates of $0.19 [1].

Key drivers for the strong Q2 results include strong consumer demand in the golf equipment segment and successful value initiatives at Topgolf venues, which improved traffic and sales trends [2]. The company also absorbed increased tariffs this year, affecting costs but not impeding growth [3].

Despite the positive Q2 performance, Topgolf Callaway revised its full-year 2025 revenue guidance downwards to $3.86 billion, a 5.7% decrease from the previous estimate. The company also increased its full-year Adjusted EBITDA guidance by $25 million to $460 million, above analyst estimates of $437 million [1].

The company's net revenue of $1.11 billion decreased 4.1% year-over-year primarily due to decreases in the Active Lifestyle segment, primarily as a result of the sale of the Jack Wolfskin business [3]. However, the Golf Equipment segment and Topgolf venues showed strong performance, offsetting the decline in the Active Lifestyle segment.

Topgolf Callaway's segment operating income increased by 2.7% year-over-year, with the Golf Equipment segment contributing the most to this increase [3]. The company's Adjusted EBITDA for Q2 was $195.8 million, a decrease of 4.8% year-over-year, primarily due to increased foreign currency hedge losses and income tax expense [3].

The current average analyst rating on the shares is "hold," with a breakdown of recommendations including 3 "strong buy" or "buy," 8 "hold," and 1 "sell" or "strong sell" [1]. Wall Street's median 12-month price target for Topgolf Callaway Brands Corp is $9.25, about 2.8% above its August 5 closing price of $8.99 [1].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX496B8E:0-topgolf-callaway-q2-revenue-beats-estimates-raises-2025-outlook/
[2] https://www.marketscreener.com/news/earnings-flash-modg-topgolf-callaway-brands-corp-reports-q2-revenue-1-11b-vs-factset-est-of-1-ce7c5ededb80f124
[3] https://www.prnewswire.com/news-releases/topgolf-callaway-brands-announces-second-quarter-2025-results-302523482.html