Callaway Golf Company (CALY) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales rose 2% year-over-year to $612.2M, driven by 4.5% growth in Golf Equipment and partially offset by a 3.6% decline in Apparel, Gear and Other due to shipment timing and FX headwinds in Asia.

• GAAP net income from continuing operations increased 67% to $75.8M; adjusted EBITDA grew 36% to $124.9M.

• Gross margin improved by 620 bps (GAAP) and 460 bps (non-GAAP) year-over-year, aided by price increases, cost reductions, and a $10.8M non-recurring tariff refund.

• Completed sale of Jack Wolfskin and 60% of Topgolf, returning to a focused, pure-play golf business and recognizing $17.6M net income from discontinued operations.

• $84M of common shares repurchased year-to-date; $258M in convertible notes and $163M in term loan B fully repaid, strengthening the balance sheet.

Financial highlights

• Q2 net sales: $612.2M (+2% YoY); six-month net sales: $1.3B (+5.7% YoY).

• Q2 GAAP net income from continuing operations: $75.8M (+67% YoY); diluted EPS: $0.40 (+67% YoY).

• Adjusted EBITDA for Q2: $124.9M (+36% YoY); six-month adjusted EBITDA: $288.6M (+33% YoY).

• Gross margin for Q2: 50.1% (GAAP), 48.5% (non-GAAP), up 460–620 bps YoY.

• Repurchased $84M of shares YTD; $120M remains under $200M buyback program.

Outlook and guidance

• Full-year 2026 net sales outlook raised to $2.045B–$2.070B; adjusted EBITDA guidance increased to $246M–$260M.

• Q3 2026 net sales expected at $415M–$435M; adjusted EBITDA at $10M–$20M.

• Estimated 2026 capital expenditures are $40M; non-GAAP gross margins expected to rise YoY.

• Tariff expense for 2026 now forecast at $43M, a $7M improvement over prior guidance.

• Fewer new product launches and continued rationalization of lower-margin business expected to impact second half revenue and profit.