We knew the Q2 monetary stories from Topgolf Callaway and Acushnet have been going to be fascinating. We simply didn’t know how fascinating.
Seems, they’re fairly darned fascinating.
For these of you pondering golf’s two largest publicly traded corporations would hit the skids in Q2, we are able to confidently say you’re flawed.
Principally.
As is commonly the case with Topgolf Callaway and Acushnet, one firm’s quarterly monetary report reads like a roller coaster at Six Flags whereas the opposite reads like, properly, a financial report.
The most important takeaway from each, nonetheless, is that this small nugget tucked away properly under the headlines. The pending Topgolf Callaway cut up, initially deliberate for subsequent month, is being pushed into 2026.
We’ll get to the why in a minute, however first, our quarterly disclaimer:
We aren’t, nor can we declare to be, monetary specialists, funding counselors or Wall Road-level enterprise analysts. We’re merely golf business geeks who prefer to learn.
With that out of the best way, let’s dig in.
Topgolf Callaway: Splitus Interruptus
Topgolf Callaway introduced final September that it will cut up into two separate corporations, with the cut up deliberate for this September.
The cut up now’s being pushed into 2026 following the July 31 resignation of Topgolf CEO Artie Starrs. Starrs is reportedly leaving to grow to be CEO of one other firm however will stick with Topgolf via September to help with the management transition. Topgolf Callaway says that, regardless of the management change, the plan to separate the businesses stays unchanged.
The truth that this bit of reports was on the middle of page four of the report tells you which of them one is the curler coaster.
Like every curler coaster, this one begins gently with as bland a headline as you possibly can think about: Topgolf Callaway Manufacturers Pronounces Second Quarter 2025 Outcomes.
That’s it. That’s the headline.
For an organization that will usually blast report gross sales figures like a New York Day by day Information entrance web page, this one reads like The New Yorker journal. The sub-headline, Raises Full Yr 2025 Steerage, doesn’t inform us a lot, both.
Not horny. Not even remotely.
Higher than anticipated
Topgolf Callaway is reporting Q2 income of $1.11 billion, down simply over 4 p.c from Q2 of final 12 months. It additionally reported quarterly earnings of $20.3 million, down 67 p.c from final 12 months. The corporate is fast to level out that, earlier than taxes, revenue is down solely 18 p.c.
Topgolf Callaway additionally says that regardless of the drops, each gross sales and revenue “exceeded expectations.” Which may be a well mannered means of claiming “we didn’t do as badly as we thought we’d,” however I doubt that phrasing would play with buyers.
“We’re happy with our second-quarter monetary outcomes as we met or beat expectations in all segments of our ongoing enterprise,” CEO Chip Brewer informed buyers. “Our consolidated income and Adjusted EBITDA surpassed our expectations going into the quarter.”
For the primary six months of 2025, Topgolf Callaway is reporting $2.2 billion in gross sales, down about 4 p.c 12 months over 12 months. Income are additionally down, largely as a consequence of a significantly greater tax invoice this 12 months in comparison with 2024.
Adjusted EBITDA (Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization) is necessary to a publicly traded firm. It displays the effectiveness and effectivity of the gross sales group in addition to its relative market power. Topgolf Callaway stories Q2 EBITDA was down about 5 p.c at $196 million however, over the primary six months, it’s basically flat in comparison with final 12 months at $363 million.
Why the drop?
The corporate says the Topgolf and Golf Gear segments carried out higher than anticipated in Q2 and within the first half of the 12 months. Topgolf gross sales, which had been taking broadside hits as a consequence of drops in same-venue gross sales, hit $485 million. That’s down solely two p.c from final 12 months. For the primary six months, gross sales reached $879 million. Whereas that’s down 4.3 p.c from final 12 months, the corporate nonetheless says it’s higher than anticipated.
For the quarter, Topgolf’s same-venue gross sales have been down six p.c. That won’t sound nice nevertheless it does point out the tendencies of the final 12 to 18 months are reversing. The corporate has been working to make venues extra environment friendly and is seeing improved visitors tendencies. For the primary time since 2022, Topgolf is promoting Summer time Enjoyable Passes and has already offered twice as many because it did that 12 months.
Golf gear gross sales are working near 2024 ranges. For the quarter, gross sales topped $411 million (down slightly below two p.c) whereas year-to-date gross sales reached $855 million, down only one p.c from final 12 months.
Golf membership gross sales for the quarter have been basically flat at $312.7 million. Golf ball gross sales, nonetheless, have been down round 5 p.c for the quarter, ensuing within the class’s slight drop. Topgolf Callaway credit score cost-saving and gross margin initiatives (code for greater promoting costs) for minimizing the decline and offsetting incremental tariff will increase.
The issue, when you can name it that, got here within the Energetic Life-style enterprise unit. Quarterly gross sales have been down 15 p.c from final 12 months and YTD gross sales have been down 10 p.c. That, nonetheless, isn’t a shock, as the corporate finalized the sale of its Jack Wolfskin attire model throughout Q2.
Acushnet: Simply preserve swimming
Acushnet’s headline isn’t very completely different from Topgolf Callaway’s. It isn’t very completely different from any of Acushnet’s headlines from the previous 5 years, both.
Acushnet Holdings Corp. Pronounces Second Quarter and Yr-to-Date Monetary Outcomes.
That will be Acushnet’s type.
Both means, the report tells a barely completely different story. Acushnet is reporting Q2 gross sales of $720 million, up 5 p.c over final 12 months. YTD gross sales are $1.424 billion, up practically three p.c.
What’s extra, Acushnet stays the image of worthwhile consistency. Q2’s revenue of practically $76 million is up practically six p.c over final 12 months whereas its YTD revenue is $175 million. That’s up practically 10 p.c.
“The U.S. golfer base grew for the seventh straight 12 months in 2024, and world participation is wholesome and resilient, at the same time as a number of areas expertise poor spring climate,” CEO David Maher informed buyers. “Regardless of an unsure tariff panorama, the golf business fundamentals stay optimistic.”
The corporate says the expansion was fueled by greater internet gross sales in Titleist golf gear, particularly the 2025 Professional V1 fashions and the GT collection metalwoods. The corporate credit each greater gross sales volumes and better promoting costs. From a enterprise perspective, that’s a great factor. Elevated quantity, coupled with greater common promoting costs, says the market values your merchandise and is keen to pay for them.
There’s, nonetheless, FootJoy.
Acushnet nonetheless has a FootJoy downside
It looks as if a damaged report however FootJoy gross sales have been down once more in Q2, this time by solely two p.c. For the primary six months, FootJoy gross sales are down over 4 p.c. Total, FootJoy gross sales have declined in every of the final three years.
Every quarter, the story stays the identical. Declining gross sales volumes are solely being partially offset by greater common promoting costs. From a enterprise perspective, that’s not a great factor. Worth will increase can masks declining gross sales quantity and may even make your topline gross sales numbers go up. Nonetheless, when greater costs can’t outpace declining gross sales quantity, you’ve acquired bother, my pals, proper right here in River Metropolis.
It’s onerous to place a finger on simply why FootJoy gross sales have been steadily declining. Some will query high quality and/or consolation however each the Hyperflex and Quantum footwear have loyal followings. The most certainly clarification is the rising recognition of smaller manufacturers equivalent to Paynter, Skechers, True Linkswear and others, significantly within the spikeless class. These manufacturers are taking a market share chunk out of somebody’s bottom and FootJoy seems to be offering the bottom.
So who’s golf’s Prime Dawg?
Fortuitously, since Topgolf Callaway splits Topgolf into its personal enterprise unit, just a little math can provide us a transparent image. Is Callaway (sans Topgolf) or Acushnet (i.e., Titleist) the most important canine within the kennel?
For those who take Topgolf gross sales out of the image, Callaway Golf Gear and Energetic Life-style gross sales complete $1.324 billion for the primary six months of 2025. Acushnet’s gross sales, which embody Titleist golf gear, FootJoy and branded golf gear (baggage, hats, gloves, and many others.), are $1.424 billion.
That makes Acushnet our midway chief by $100 million.
For the rest of the 12 months, Acushnet expects gross sales to develop within the low single digits. The brand new Titleist T-Sequence irons will hit retail on Aug. 21 which ought to give Q3 gross sales a pleasant increase. Nonetheless, Acushnet is cautious of assorted headwinds. The corporate expects international alternate charges to have a destructive influence of about $5 million on gross sales this 12 months. The latest introduced tariffs are anticipated to influence the corporate to the tune of $30 million within the second half of the 12 months.
Acushnet does say it’s taking steps to mitigate that influence, which ought to offset about 50 p.c of the tariff hit.
Topgolf Callaway, however, up to date its 2025 investor steering downward, however with a cause. The brand new $3.8-billion to $3.9-billion projection removes Jack Wolfskin gross sales from the image however remains to be down from 2024’s $4.24 billion.
The corporate can also be narrowing Topgolf projections with a better ground and a decrease ceiling. The $1.71-billion to $1.77-billion estimate displays a smaller drop in identical venue gross sales than had been anticipated. That hints that efforts to enhance venue efficiency are working and that the current slide could have bottomed out.
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