Topgolf Callaway’s (NYSE:MODG) Q3 Sales Beat Estimates, Stock Soars

3 weeks ago 13

Petr Huřťák

Thu, November 6, 2025 astatine 4:14 PM CST 5 min read

Golf amusement and cogwheel institution Topgolf Callaway (NYSE:MODG) reported Q3 CY2025 results exceeding the market’s gross expectations , but income fell by 7.8% twelvemonth connected twelvemonth to $934 million. The institution expects adjacent quarter’s gross to beryllium astir $783 million, adjacent to analysts’ estimates. Its non-GAAP nonaccomplishment of $0.05 per stock was 76.9% supra analysts’ statement estimates.

Is present the clip to bargain Topgolf Callaway? Find retired successful our afloat probe report.

Revenue: $934 cardinal vs expert estimates of $913.2 cardinal (7.8% year-on-year decline, 2.3% beat)
Adjusted EPS: -$0.05 vs expert estimates of -$0.22 (76.9% beat)
Adjusted EBITDA: $114.4 cardinal vs expert estimates of $87.63 cardinal (12.2% margin, 30.5% beat)
Revenue Guidance for Q4 CY2025 is $783 cardinal astatine the midpoint, astir successful enactment with what analysts were expecting
EBITDA guidance for the afloat year is $500 cardinal astatine the midpoint, supra expert estimates of $468.1 million
Operating Margin: 3%, successful enactment with the aforesaid 4th past year
Free Cash Flow Margin: 17.4%, up from 10.8% successful the aforesaid 4th past year
Market Capitalization: $1.70 billion

"We are pleased with our 3rd 4th results, with some gross and Adjusted EBITDA exceeding our expectations," commented Chip Brewer, President and Chief Executive Officer of Topgolf Callaway Brands Corp.

Formed betwixt the merger of Callaway and Topgolf, Topgolf Callaway (NYSE:MODG) sells play instrumentality and operates technology-driven play amusement venues.

A company’s semipermanent show is an indicator of its wide quality. Even a atrocious concern tin radiance for 1 oregon 2 quarters, but a top-tier 1 grows for years. Thankfully, Topgolf Callaway’s 21.6% annualized gross maturation implicit the past 5 years was impressive. Its maturation bushed the mean user discretionary institution and shows its offerings resonate with customers.

Long-term maturation is the astir important, but wrong user discretionary, merchandise cycles are abbreviated and gross tin beryllium hit-driven owed to rapidly changing trends and user preferences. Topgolf Callaway’s caller show marks a crisp pivot from its five-year inclination arsenic its gross has shown annualized declines of 2.1% implicit the past 2 years. Note that COVID wounded Topgolf Callaway’s concern successful 2020 and portion of 2021, and it bounced backmost successful a large mode thereafter.

Topgolf Callaway Year-On-Year Revenue Growth

This quarter, Topgolf Callaway’s gross fell by 7.8% twelvemonth connected twelvemonth to $934 cardinal but bushed Wall Street’s estimates by 2.3%. Company absorption is presently guiding for a 15.3% year-on-year diminution successful income adjacent quarter.