Callaway Golf

CALY · NYSE · Consumer Discretionary · Financials, fiscal 2016 to 2025

CALY · Last close · October 26, 2026

$14.26

Callaway Golf's revenue fell 0.8% to $2.1 billion in fiscal 2025. Its operating margin was 6.2%, down from 7.4% a year earlier. Free cash flow was $302 million, down 9.3%. It paid out $4 million in dividends and buybacks, 1% of free cash flow. The diluted share count fell 6.8%.

Callaway Golf Company Latest fiscal year ended December 31, 2025 10-K filed February 27, 2026 · 0000837465-26-000010 Updated October 10, 2026

Revenue

$2.1B

0.8%

Operating margin

6.2%

1.1 pts

Net income

−$409M

Free cash flow

$302M

9.3%

Return on capital

2.1%

0.9 pts

Market cap

$2.7B

Oct 26 close

P/E

—

Loss: no P/E

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

What Callaway Golf does

Callaway Golf designs, makes and sells golf clubs, golf balls, apparel, bags and accessories. Its brands are Callaway Golf, Odyssey (putters), TravisMathew (apparel) and OGIO (bags and gear). It sells through golf course pro shops, off-course and sporting goods retailers, online retailers, distributors and mass merchants, and directly to consumers through its websites and some stores in Japan and Korea. It generates a large majority of its revenue from golf-related products.

It reports two segments: Golf Equipment, which makes clubs and balls, and Apparel, Gear and Other. It assembles clubs mainly in Monterrey, Mexico, and makes balls in Chicopee, Massachusetts, and it also uses contract manufacturers in Asia.

The company changed shape in 2025 and early 2026. It sold its Jack Wolfskin outdoor apparel business on May 31, 2025. Effective January 1, 2026, it sold a 60% ownership interest in its Topgolf and Toptracer businesses to funds managed by Leonard Green & Partners, and it kept a 40% stake in Topgolf. On January 15, 2026 it changed its name back from Topgolf Callaway Brands to Callaway Golf, and its stock ticker changed from MODG to CALY. Both sold businesses are shown as discontinued operations.

Its biggest risks, as it describes them

Dependence on golf-related products for most revenue, with limited room to grow sales of clubs and balls.
Weak consumer spending, which hurts sales of discretionary products like golf equipment.
Changes to the Rules of Golf, such as limits on golf ball specifications, that could hurt its products.
Executing the Topgolf and Jack Wolfskin sales, and having little say as a minority owner of Topgolf.
U.S. import tariffs and trade policy changes, since much of its production is outside the U.S.

From Callaway Golf's annual report on Form 10-K, filed February 27, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2016 to 2023, earnings per share fell 17.8% a year and net income 9.4% a year, as new shares raised the share count by 110% and diluted each share's earnings. Callaway Golf then lost money in fiscal 2024 and 2025.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Valuation

Two ways to value Callaway Golf yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Callaway Golf's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Callaway Golf's fiscal 2025 free cash flow of $302M, net cash of −$558M at December 31, 2025 and 186 million diluted shares, from its filings. The scenarios are fitted to Callaway Golf: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, -19.8% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 13%: 11% for a cyclical or higher-risk business (Leisure Products), plus 1 point as a smaller company, worth $2.7B, plus 1 point for unsteady results (a loss in fiscal 2025); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions

Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Callaway Golf's own revenue growth, as above. Cautious: growth of -2% then 0% a year, 2% after year 10, a 14% discount rate. Base: growth of 0% then 1% a year, 2.5% after year 10, a 13% discount rate. Optimistic: growth of 2% then 2.5% a year, 3% after year 10, a 12% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $14.26
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

The P/E method needs positive earnings, and Callaway Golf's latest diluted earnings per share were negative or zero.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	352	180	394	445	903
Debt incl. finance leases	1,188	1,637	1,590	1,455	1,462
Net debt (negative means net cash)	836	1,457	1,196	1,010	558
Net debt to EBITDA	2.3x	3.2x	5.0x	5.1x	3.2x
Debt to equity	0.3x	0.4x	0.4x	0.6x	0.7x
Interest coverage	1.8x	1.8x	0.9x	2.4x	2.1x
Current ratio	1.4x	1.3x	1.7x	1.9x	1.4x
Quick ratio	0.7x	0.5x	0.9x	1.2x	1.2x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

Over the 12 months between October 27, 2025 and October 26, 2026, no insider bought Callaway Golf shares on the open market, and 4 insiders sold $151.6 million.

Date	Insider	Trade	Shares	Price	Value	Filing
Aug 7, 2026	Oliver G Brewer IIIPresident and CEO, Director	Sold	1,400	$18.00	$25,200	Form 4
Aug 6, 2026	Oliver G Brewer IIIPresident and CEO, Director	Sold	67,474	$18.30	$1.2 million	Form 4
Aug 6, 2026	Glenn F. HickeyEVP & Pres., Callaway Sales	Sold	28,843	$18.74	$540,518	Form 4
May 12, 2026	Erik J AndersonDirector	Sold	25,000	$15.74	$393,500	Form 4
May 11, 2026	Erik J AndersonDirector	Sold	75,000	$17.12	$1.3 million	Form 4
Feb 23, 2026	Erik J AndersonDirector	Sold	10,000	$13.82	$138,200	Form 4
Feb 19, 2026	Erik J AndersonDirector	Sold	10,000	$13.98	$139,800	Form 4
Feb 18, 2026	Erik J AndersonDirector	Sold	20,000	$13.64	$272,800	Form 4
Feb 17, 2026	Erik J AndersonDirector	Sold	40,000	$13.43	$537,200	Form 4
Jan 27, 2026	Michael J Dominguez10% owner	Sold	10,000,000	$14.70	$147.0 million	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Fail	Fail
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Fail	Pass	Fail
Current ratio rose	Pass	Pass	Fail
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	—	Fail	Fail
Revenue rose relative to assets	Fail	Fail	Pass
F-score	5 of 8	5 of 9	5 of 9
Accruals ratio	−3.0%	−21.8%	−10.0%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Callaway Golf side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Callaway Golf	FY25	−0.8%	6.2%	14.7%	2.1%	3.2x	5
Yeti	FY25	2.1%	11.4%	11.3%	32.1%	−0.4x	6	Compare
Peloton Interactive	FY26	−1.8%	6.6%	15.4%	—	0.6x	8	Compare
Acushnet	FY25	4.1%	11.7%	4.7%	14.7%	2.5x	6	Compare
Mattel	FY25	−0.6%	10.2%	9.0%	13.5%	1.5x	5	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	871	1,049	1,243	1,701	1,590	3,133	3,996	2,133	2,078	2,060
Revenue growth	3.2%	20.4%	18.5%	36.9%	−6.6%	97.1%	27.5%	−46.6%	−2.6%	−0.8%
Gross profit	385	480	578	767	658	—	—	927	887	868
Research and development	33	37	41	51	46	68	76	62	64	66
Operating income	44	79	128	133	−106	205	257	194	153	128
Net income	190	41	105	79	−127	322	158	95	−1,448	−409
Diluted EPS (US$)	1.98	0.42	1.08	0.82	−1.35	1.82	0.82	0.50	−7.23	−2.20
Diluted shares (millions)	96	97	97	96	94	177	201	201	199	186
Cash flow
Cash from operations	78	118	92	86	228	278	−35	365	382	334
Capital expenditure	16	26	37	55	39	322	532	50	49	32
Free cash flow	62	92	55	32	189	−44	−567	315	333	302
Dividends paid	4	4	4	4	2	0	0	0	0	0
Share buybacks	5	17	22	28	22	38	36	56	31	4
Acquisitions	0	184	0	463	0	0	0	30	23	0
Stock-based compensation	9	13	14	13	11	39	47	33	28	24
Balance sheet at fiscal year end
Cash and short-term investments	126	86	64	107	366	352	180	394	445	903
Debt incl. finance leases	0	12	10	452	688	1,188	1,637	1,590	1,455	1,462
Total assets	801	991	1,053	1,960	1,981	7,748	8,590	9,121	7,636	7,286
Total liabilities	193	332	319	1,193	1,305	4,065	4,816	5,242	5,228	5,217
Shareholders' equity	599	650	725	767	676	3,683	3,774	3,878	2,408	2,069
Margins and ratios
Gross margin	44.2%	45.8%	46.5%	45.1%	41.4%	—	—	43.5%	42.7%	42.1%
Operating margin	5.1%	7.5%	10.3%	7.8%	−6.6%	6.5%	6.4%	9.1%	7.4%	6.2%
Net margin	21.8%	3.9%	8.4%	4.7%	−8.0%	10.3%	4.0%	4.5%	−69.7%	−19.9%
Free cash flow margin	7.1%	8.7%	4.5%	1.9%	11.9%	−1.4%	−14.2%	14.8%	16.0%	14.7%
Return on capital	—	9.0%	16.3%	12.2%	−7.9%	6.8%	5.3%	2.9%	3.0%	2.1%
Return on equity	37.5%	6.5%	15.2%	10.7%	−17.6%	14.8%	4.2%	2.5%	−46.1%	−18.3%
Return on assets	26.5%	4.5%	10.2%	5.3%	−6.4%	6.6%	1.9%	1.1%	−17.3%	−5.5%
Net debt to EBITDA	−2.1x	−0.8x	−0.4x	2.1x	—	2.3x	3.2x	5.0x	5.1x	3.2x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Callaway Golf's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Callaway Golf.