Overview

* Topgolf Callaway Q3 revenue grows 3% yr/yr, beating analyst expectations

* Adjusted EBITDA for Q3 beats consensus, driven by Golf Equipment and Topgolf segments

* Company raises full year 2025 revenue and adjusted EBITDA guidance

Outlook

* Company raises full-year 2025 revenue guidance to $3.90 bln-$3.94 bln

* Topgolf revenue guidance increased to $1.77 bln-$1.79 bln

* Full-year Adjusted EBITDA guidance increased to $490 mln-$510 mln

Result Drivers

* GOLF EQUIPMENT DEMAND - Strong demand for golf equipment drove revenue growth in the Golf Equipment segment

* TOPGOLF VENUE EXPANSION - Addition of six new Topgolf venues and improved traffic trends led to revenue growth

* TARIFF IMPACT - Incremental tariffs affected non-GAAP income from operations and Adjusted EBITDA

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $934 mln $905 mln

Revenue (10

Analysts

)

Q3 Net -$14.70

Income mln

Q3 Beat $114.40 $88.30

Adjusted mln mln (9

EBITDA Analysts

)

Q3 $28.30

Operatin mln

g Income

Q3 -$22.30

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the recreational products peer group is "buy."

* Wall Street's median 12-month price target for Topgolf Callaway Brands Corp ( MODG ) is $10.50, about 11.8% above its November 5 closing price of $9.26

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)