Callaway Golf Company (CALY) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales rose 9.2% year-over-year to $688 million, with adjusted EBITDA up 31% to $164 million, driven by strong new product demand and healthy market conditions.

• Non-GAAP net income increased 96% to $111.8 million, while GAAP net income from continuing operations rose 18% to $74.9 million.

• Gross margin improved by 250–260 basis points to 47.5–47.7%, reflecting price increases, cost reductions, and favorable mix.

• Completed sale of Jack Wolfskin and a 60% interest in Topgolf, repaid $1 billion in term debt, and initiated a $200 million share repurchase program.

• Transitioned to a pure-play golf company, focusing on core strengths and capital return to shareholders.

Financial highlights

• Q1 consolidated net sales increased 9.2% year-over-year to $687.5 million, with golf equipment net sales up 10% and softgoods/apparel up 8%.

• Adjusted EBITDA rose 31% to $163.7 million, overcoming $18 million in incremental tariff expense.

• Net income from continuing operations was $74.9 million (GAAP), with non-GAAP net income at $111.8 million.

• Diluted EPS from continuing operations was $0.38 (GAAP) and $0.56 (non-GAAP).

• Net cash position at quarter-end, with $474–$500 million in cash and $474 million in debt.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $2.015–$2.070 billion, with adjusted EBITDA guidance increased to $211–$233 million.

• Q2 2026 net sales forecasted at $585–$610 million, with adjusted EBITDA of $98–$108 million.

• Gross margin now expected to be up year-over-year, versus prior guidance of flat.

• Guidance reflects a $25 million reduction in expected gross tariff impact and mid-single digit FX headwinds.

• Capital expenditures for 2026 projected at $35–$40 million.