Topgolf Callaway Brands Corp. hiked its guidance for the year after reporting third-quarter results that handily topped guidance. The performance benefited from Topgolf’s same-venue sales inflecting to positive growth and the golf equipment segment expanding by 4 percent.

Sales reached $934.0 million, above guidance in the range of $880 million to $920 million. Adjusted EBITDA of $114.4 million was well above guidance in the range of $78 million to $98 million.

Chip Brewer, president and CEO, said on an analuyst call the quarter exceeded expectations in both revenue and EBITDA, with revenue up year-over-year in both golf equipment and Topgolf segments.

“This performance was driven by excellent market conditions, along with solid execution in our golf equipment business, as well as by an outstanding consumer response to our value initiatives at Topgolf, where we continued the impressive traffic growth that began mid-year, especially in the one to two bay portion of our business, which in turn set up an all-important transition to overall positive same-venue sales for the quarter. This performance, along with the trends we’ve seen in October, makes us increasingly confident in our strategic direction and supports the increased full-year guidance.”

Third-Quarter Highlights

  • Q3 revenue from the ongoing business (excluding Jack Wolfskin) grew 3 percent year-over-year.
  • Q3 net revenue and adjusted EBITDA both exceeded guidance.
  • Q3 Topgolf same venue sales increased to positive growth.
  • Company liquidity remains strong, increasing $391 million year-over-year to $1,254 million.
  • Raising total company and Topgolf full-year 2025 revenue and adjusted EBITDA guidance.

“We are pleased with our third quarter results, with both revenue and adjusted EBITDA exceeding our expectations,” commented Chip Brewer, president and chief executive officer of Topgolf Callaway Brands Corp. “These results were led by strong performance and market conditions in our Golf Equipment segment and by our Topgolf business, which transitioned to positive same venue sales growth in the quarter. These results, along with current business trends, are allowing us to increase our full-year financial guidance.”

GAAP Results

Non-GAAP Results 

Non-Gaap Results From Ongoing Business

Non-GAAP results from the ongoing business further exclude from the non-GAAP results above the Jack Wolfskin financial results for the three and nine months ended September 30, 2025 and 2024. The company sold the Jack Wolfskin business in Q2 of 2025. The company has also provided a reconciliation of this non-GAAP information to the most directly comparable GAAP information in the tables to this release

Third Quarter 2025 Consolidated Results Commentary
The company’s net revenue was $934.0 million. Excluding $0.2 million and $108.2 million of Jack Wolfskin revenue in the third quarter of 2025 and 2024, respectively, net revenue increased approximately 3 percent. The year-over-year increase in net revenue is attributable to strong performance in both the Topgolf and Golf Equipment segments.

On a GAAP basis, income from operations decreased $5.4 million to $28.3 million. On a non-GAAP basis, income from operations was $35.3 million. Excluding $(0.2) million and $1.9 million in Jack Wolfskin income from operations in the third quarter of 2025 and 2024, respectively, total non-GAAP income from operations decreased $5.6 million. The yearover-year decline in non-GAAP income from operations is attributable to the $12 million in incremental tariffs in the company’s Core business.

Net loss was $14.7 million on a GAAP basis and $9.2 million on a non-GAAP basis. Adjusted EBITDA was $114.4 million. Excluding $(0.2) million and $0.8 million in Jack Wolfskin adjusted EBITDA in the third quarter of 2025 and 2024, respectively, total adjusted EBITDA decreased $4.4 million. The decrease in adjusted EBITDA is attributable to the $12 million in incremental tariffs in the company’s Core business.

Segment Net Revenues

Segment Operating Income

Third Quarter 2025 Segment Commentary

Golf Equipment

  • Revenue increased 4.0 percent to $305.3 million primarily due to strong demand for golf equipment in the quarter.
  • Segment operating income of $23.2 million decreased $3.6 million, including $8 million in incremental tariffs, which was partially offset by gross margin and cost savings initiatives.

Active Lifestyle

  • Revenue was $156.5 million. Excluding $0.2 million and $108.2 million in Jack Wolfskin revenue in the third quarter of 2025 and 2024, respectively, total Active Lifestyle revenue was approximately flat.
  • Operating income was $13.7 million. Excluding $(0.2) million and $1.9 million in Jack Wolfskin income from operations in the third quarter of 2025 and 2024, respectively, total Active Lifestyle operating income was down $3.6 million. These results include $4 million in incremental tariffs.

Topgolf

  • Segment revenue increased $19.0 million to $472.2 million, driven by the addition of six new venues since last year and a 1 percent increase in same venue sales.
  • Same venue sales growth of 1 percent was ahead of expectations, primarily due to improved traffic trends from new value initiatives.
  • Topgolf operating income of $31.1 million increased $2.8 million year-over-year, while adjusted EBITDA was roughly flat year-over-year at $83.5 million.

Balance Sheet and Cash Flow Highlights

  • Inventory decreased $97.7 million year-over-year to $568.7 million, primarily due to a decrease of $108.0 million as a result of the sale of Jack Wolfskin.
  • Available liquidity, which is comprised of cash on hand plus availability under the company’s credit facilities, increased $391.2 million to $1,254.2 million compared to September 30, 2024, primarily driven by approximately $290 million of cash proceeds from the sale of Jack Wolfskin, as well as cash from operations and proceeds from lease financing.

2025 Outlook Update
In light of the company’s outperformance in the third-quarter and improved outlook for the balance of the year based upon current trends, the company raised its full-year financial guidance on a consolidated basis and at Topgolf. The company also provided fourth quarter consolidated guidance.

The company raised its consolidated full-year 2025 revenue guidance to a range of $3.90 billion to $3.94 billion and its consolidated full-year adjusted EBITDA guidance to a range of $490 million to $510 million. This increased guidance reflects the better-than-expected Q3 results, an improved outlook for the balance of the year based upon current trends, as well as continued cost management initiatives, which are expected to help mitigate the incremental tariffs that are estimated to be approximately $40 million for 2025.
For Topgolf, based upon current trends, the company revised its full-year same-venue sales guidance to down mid-single digits. As a result, the company raised its full-year Topgolf revenue guidance to a range of $1.77 billion to $1.79 billion and its Topgolf adjusted EBITDA guidance to a range of $295 million to $305 million.

The company’s full-year revenue and adjusted EBITDA estimates for 2025 include Jack Wolfskin results for only a portion of the year due to the sale of that business in the second quarter of 2025. More specifically, it includes Jack Wolfskin revenue of $96 million and adjusted EBITDA loss of $13 million. The 2024 results include a full year of Jack Wolfskin results, namely $355 million in revenue and a loss of $8 million in adjusted EBITDA.

The company’s fourth quarter estimates for 2025 reflect the company’s improved outlook for the balance of the year based upon current trends and do not include any results for Jack Wolfskin as that business was sold in the second quarter of 2025. The 2024 results include Jack Wolfskin revenue of $114 million and $18 million in adjusted EBITDA.

Image courtesy Topgolf