We knew the Q2 financial reports from Topgolf Callaway and Acushnet were going to be interesting. We just didn’t know how interesting.
Turns out, they’re pretty darned interesting.
For those of you thinking golf’s two biggest publicly traded companies would hit the skids in Q2, we can confidently say you’re wrong.
Mostly.
As is often the case with Topgolf Callaway and Acushnet, one company’s quarterly financial report reads like a roller coaster at Six Flags while the other reads like, well, a financial report.
The biggest takeaway from both, however, is this small nugget tucked away well below the headlines. The pending Topgolf Callaway split, originally planned for next month, is being pushed into 2026.
We’ll get to the why in a minute, but first, our quarterly disclaimer:
We are not, nor do we claim to be, financial experts, investment counselors or Wall Street-level business analysts. We’re simply golf industry geeks who like to read.
With that out of the way, let’s dig in.
Topgolf Callaway: Splitus Interruptus
Topgolf Callaway announced last September that it would split into two separate companies, with the split planned for this September.
The split now is being pushed into 2026 following the July 31 resignation of Topgolf CEO Artie Starrs. Starrs is reportedly leaving to become CEO of another company but will stay with Topgolf through September to assist with the leadership transition. Topgolf Callaway says that, despite the leadership change, the plan to split the companies remains unchanged.
The fact that this bit of news was on the middle of page four of the report tells you which one is the roller coaster.
Like any roller coaster, this one starts gently with as bland a headline as you can imagine: Topgolf Callaway Brands Announces Second Quarter 2025 Results.
That’s it. That’s the headline.
For a company that would regularly blast record sales figures like a New York Daily News front page, this one reads like The New Yorker magazine. The sub-headline, Raises Full Year 2025 Guidance, doesn’t tell us much, either.
Not sexy. Not even remotely.
Better than expected
Topgolf Callaway is reporting Q2 revenue of $1.11 billion, down just over four percent from Q2 of last year. It also reported quarterly profits of $20.3 million, down 67 percent from last year. The company is quick to point out that, before taxes, income is down only 18 percent.
Topgolf Callaway also says that despite the drops, both sales and profit “exceeded expectations.” That may be a polite way of saying “we didn’t do as badly as we thought we would,” but I doubt that phrasing would play with investors.
“We are pleased with our second-quarter financial results as we met or beat expectations in all segments of our ongoing business,” CEO Chip Brewer told investors. “Our consolidated revenue and Adjusted EBITDA surpassed our expectations going into the quarter.”
For the first six months of 2025, Topgolf Callaway is reporting $2.2 billion in sales, down about four percent year over year. Profits are also down, largely due to a considerably higher tax bill this year compared to 2024.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is important to a publicly traded company. It reflects the effectiveness and efficiency of the sales organization as well as its relative market strength. Topgolf Callaway reports Q2 EBITDA was down about five percent at $196 million but, over the first six months, it’s essentially flat compared to last year at $363 million.
Why the drop?
The company says the Topgolf and Golf Equipment segments performed better than expected in Q2 and in the first half of the year. Topgolf sales, which had been taking broadside hits due to drops in same-venue sales, hit $485 million. That’s down only two percent from last year. For the first six months, sales reached $879 million. While that’s down 4.3 percent from last year, the company still says it’s better than expected.
For the quarter, Topgolf’s same-venue sales were down six percent. That may not sound great but it does indicate the trends of the last 12 to 18 months are reversing. The company has been working to make venues more efficient and is seeing improved traffic trends. For the first time since 2022, Topgolf is selling Summer Fun Passes and has already sold twice as many as it did that year.
Golf equipment sales are running close to 2024 levels. For the quarter, sales topped $411 million (down just under two percent) while year-to-date sales reached $855 million, down just one percent from last year.
Golf club sales for the quarter were essentially flat at $312.7 million. Golf ball sales, however, were down around five percent for the quarter, resulting in the category’s slight drop. Topgolf Callaway credit cost-saving and gross margin initiatives (code for higher selling prices) for minimizing the decline and offsetting incremental tariff increases.
The problem, if you can call it that, came in the Active Lifestyle business unit. Quarterly sales were down 15 percent from last year and YTD sales were down 10 percent. That, however, isn’t a surprise, as the company finalized the sale of its Jack Wolfskin apparel brand during Q2.
Acushnet: Just keep swimming
Acushnet’s headline isn’t very different from Topgolf Callaway’s. It isn’t very different from any of Acushnet’s headlines from the past five years, either.
Acushnet Holdings Corp. Announces Second Quarter and Year-to-Date Financial Results.
That would be Acushnet’s style.
Either way, the report tells a slightly different story. Acushnet is reporting Q2 sales of $720 million, up five percent over last year. YTD sales are $1.424 billion, up nearly three percent.
What’s more, Acushnet remains the picture of profitable consistency. Q2’s profit of nearly $76 million is up nearly six percent over last year while its YTD profit is $175 million. That’s up nearly 10 percent.
“The U.S. golfer base grew for the seventh straight year in 2024, and global participation is healthy and resilient, even as several regions experience poor spring weather,” CEO David Maher told investors. “Despite an uncertain tariff landscape, the golf industry fundamentals remain positive.”
The company says the growth was fueled by higher net sales in Titleist golf equipment, specifically the 2025 Pro V1 models and the GT series metalwoods. The company credits both higher sales volumes and higher selling prices. From a business perspective, that’s a good thing. Increased volume, coupled with higher average selling prices, says the market values your products and is willing to pay for them.
There is, however, FootJoy.
Acushnet still has a FootJoy problem
It seems like a broken record but FootJoy sales were down again in Q2, this time by only two percent. For the first six months, FootJoy sales are down over four percent. Overall, FootJoy sales have declined in each of the last three years.
Each quarter, the story remains the same. Declining sales volumes are only being partially offset by higher average selling prices. From a business perspective, that’s not a good thing. Price increases can mask declining sales volume and can even make your topline sales numbers go up. However, when higher prices can’t outpace declining sales volume, you’ve got trouble, my friends, right here in River City.
It’s hard to put a finger on just why FootJoy sales have been steadily declining. Some will question quality and/or comfort but both the Hyperflex and Quantum shoes have loyal followings. The most likely explanation is the growing popularity of smaller brands such as Paynter, Skechers, True Linkswear and others, particularly in the spikeless category. Those brands are taking a market share bite out of someone’s backside and FootJoy appears to be providing the backside.
So who is golf’s Top Dawg?
Fortunately, since Topgolf Callaway splits Topgolf into its own business unit, a little math can give us a clear picture. Is Callaway (sans Topgolf) or Acushnet (i.e., Titleist) the biggest dog in the kennel?
If you take Topgolf sales out of the picture, Callaway Golf Equipment and Active Lifestyle sales total $1.324 billion for the first six months of 2025. Acushnet’s sales, which include Titleist golf equipment, FootJoy and branded golf gear (bags, hats, gloves, etc.), are $1.424 billion.
That makes Acushnet our halfway leader by $100 million.
For the remainder of the year, Acushnet expects sales to grow in the low single digits. The new Titleist T-Series irons will hit retail on Aug. 21 which should give Q3 sales a nice boost. However, Acushnet is wary of various headwinds. The company expects foreign exchange rates to have a negative impact of about $5 million on sales this year. The most recent announced tariffs are expected to impact the company to the tune of $30 million in the second half of the year.
Acushnet does say it’s taking steps to mitigate that impact, which should offset about 50 percent of the tariff hit.
Topgolf Callaway, on the other hand, updated its 2025 investor guidance downward, but with a reason. The new $3.8-billion to $3.9-billion projection removes Jack Wolfskin sales from the picture but is still down from 2024’s $4.24 billion.
The company is also narrowing Topgolf projections with a higher floor and a lower ceiling. The $1.71-billion to $1.77-billion estimate reflects a smaller drop in same venue sales than had been anticipated. That hints that efforts to improve venue performance are working and that the recent slide may have bottomed out.
The post Topgolf Callaway Split Delayed And Other Financial Tidbits From Golf’s Biggest Companies appeared first on MyGolfSpy.
