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Callaway Golf
(NYSE:CALY)
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Rating:59Neutral
Price Target:
$15.00
▼(-4.70% Downside)
Action:Reiterated
Date:08/10/26
Overall score reflects improving fundamentals led by a stronger balance sheet and solid current cash generation, plus a constructive earnings call with raised guidance and better profitability trends. These positives are balanced by weak recent revenue trends/thin margins, cautious near-term technicals, and a demanding valuation (very high P/E) despite the attractive dividend yield.
Positive Factors
Balance Sheet Deleveraging
The sharp reduction in leverage and expected net-cash position materially improve financial resilience. Lower debt service needs should preserve cash for product investment, shareholder returns, and strategic flexibility through changing demand conditions.
Negative Factors
Revenue Contraction and Thin Profitability
The declining top line and very thin net margin leave limited room for execution mistakes or renewed demand weakness. Low profitability also reduces the company’s ability to absorb cost increases while continuing investment in products and market development.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Deleveraging
The sharp reduction in leverage and expected net-cash position materially improve financial resilience. Lower debt service needs should preserve cash for product investment, shareholder returns, and strategic flexibility through changing demand conditions.
Read all positive factors
Callaway Golf Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across different business segments, indicating which parts of the company are most efficient and where there might be challenges or opportunities for improvement.
Reveals profitability across different business segments, indicating which parts of the company are most efficient and where there might be challenges or opportunities for improvement.
Data provided by:
The Fly
The FlyCallaway Golf (CALY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.52B
Dividend Yield8.64%
Average Volume (3M)2.10M
Price to Earnings (P/E)28.8
Beta (1Y)1.18
Revenue Growth-37.17%
EPS Growth84.41%
CountryUS
Employees28,000
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.49
Shares Outstanding178,510,530
10 Day Avg. Volume1,649,105
30 Day Avg. Volume2,099,362
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)1.04
Price to Sales (P/S)1.04
P/FCF Ratio7.11
Enterprise Value/Market Cap1.41
Enterprise Value/Revenue1.37
Enterprise Value/Gross Profit2.60
Enterprise Value/Ebitda11.25
Forecast
1Y Price Target
$20.11Price Target Upside27.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.74
Revenue Forecast (FY)$2.06B
Callaway Golf Business Overview & Revenue Model
Company Description
Callaway Golf Company is a global enterprise that develops, produces, and sells a diverse range of golf equipment, golf and lifestyle apparel, and associated accessories. Its operations span across the United States, Europe, Asia, and other intern...
Callaway Golf Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive message: the company reported modest top‑line growth with strong profitability gains (36% EBITDA growth and significant gross margin expansion), meaningful market share improvements (notably in golf balls), deleveraging to net cash, and active capital return actions. Management was transparent about deliberate short‑term decisions (product cadence changes, SKU and store rationalization) that will pressure second‑half revenue/profitability but are designed to improve long‑term margins and free cash flow. Key risks include regional softness (Korea, weather‑driven Europe), FX and commodity cost volatility, and near‑term guidance softness for Q3, but overall the operational and financial progress and the balance sheet improvements outweigh the short‑term headwinds.Positive Updates
Quarterly Revenue and EBITDA Growth
Q2 net sales of $612 million, up 2% year‑over‑year; adjusted EBITDA of $125 million, up 36% year‑over‑year; both results beat the midpoint of Q2 guidance by approximately $15 million in revenue and $22 million in adjusted EBITDA.
Negative Updates
Softness in Golf Goods and Regional FX Headwinds
Golf Goods net sales decreased 4% in Q2, primarily due to timing of shipments and foreign exchange headwinds in Asia.
Read all updates
Q2-2026 Updates
Positive
Negative
Quarterly Revenue and EBITDA Growth
Q2 net sales of $612 million, up 2% year‑over‑year; adjusted EBITDA of $125 million, up 36% year‑over‑year; both results beat the midpoint of Q2 guidance by approximately $15 million in revenue and $22 million in adjusted EBITDA.
Read all positive updates
Company Guidance
Callaway raised full‑year 2026 net sales guidance to $2.045–$2.070 billion (≈$15M midpoint increase) and increased adjusted EBITDA to $246–$260 million (≈$31M midpoint increase — ~$21M from the Q2 beat, ~$3M from higher organic sales flow‑through and ~$7M from revised tariff estimates). Q3 guidance is net sales of $415–$435 million and adjusted EBITDA of $10–$20 million. The company now expects full‑year gross tariff expense of ~ $43 million (vs $34M in 2025) and continues to pursue ~ $50 million of potential tariff refunds (Phase 1 ≈$11M received, Phase 2 ≈$32M with ~ $7M received/recognized in Q3, ~ $7M potential Phase 3); tariff refunds are excluded from non‑GAAP results. CapEx is expected to be about $40 million; share repurchases totaled ~$84 million (≈5.9M shares) through June — ~$42M in Q1 and ~$42M in Q2 — under a $200M program with ≈$120M remaining. At quarter end the company had ≈$278M cash, $74M of debt (including $23M finance leases), total available liquidity of ≈$775M (vs $1.16B prior year mainly due to $1.4B debt paydown), and expects to finish the year in a net‑cash position. Management cautioned H2 will be affected by fewer product launches and SKU rationalization (and ~ $5M FX headwind), that gross margins (Q2 was +460 bps to 48.5%, first half +360 bps) should remain up year‑over‑year but improve less in H2, and that lower dividend income is an approximate $12M H2 headwind to adjusted EBITDA.Callaway Golf Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
64
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.60B | 2.06B | 4.24B | 4.28B | 4.00B | 3.13B |
| Gross Profit | 1.37B | 867.60M | 2.65B | 2.65B | 2.41B | 1.86B |
| EBITDA | 317.10M | 194.60M | -1.20B | 484.70M | 477.50M | 701.97M |
| Net Income | 87.60M | 38.80M | -1.45B | 95.00M | 157.90M | 322.00M |
Balance Sheet | ||||||
| Total Assets | 2.78B | 7.29B | 7.64B | 9.12B | 8.59B | 7.75B |
| Cash, Cash Equivalents and Short-Term Investments | 278.10M | 903.20M | 445.00M | 393.50M | 180.20M | 352.20M |
| Total Debt | 250.40M | 1.67B | 4.14B | 4.07B | 3.57B | 4.48B |
| Total Liabilities | 620.50M | 5.22B | 5.23B | 5.24B | 4.82B | 4.06B |
| Stockholders Equity | 2.16B | 2.07B | 2.41B | 3.88B | 3.77B | 3.68B |
Cash Flow | ||||||
| Free Cash Flow | 288.00M | 301.40M | 333.10M | -117.30M | -567.40M | -44.02M |
| Operating Cash Flow | 372.80M | 334.00M | 381.80M | 364.70M | -35.10M | 278.26M |
| Investing Cash Flow | 688.00M | 21.60M | -297.30M | -542.90M | -535.10M | -161.86M |
| Financing Cash Flow | -1.46B | 91.50M | -23.40M | 375.80M | 425.30M | -124.07M |
Callaway Golf Technical Analysis
Neutral
15.74
Price Trends
14.87
Negative
16.37
Negative
15.44
Negative
Market Momentum
-0.25
Negative
46.17
Neutral
76.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CALY, the sentiment is Neutral. The current price of 15.74 is above the 20-day moving average (MA) of 14.03, above the 50-day MA of 14.87, and above the 200-day MA of 15.44, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 76.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CALY.
Callaway Golf Risk Analysis
Callaway Golf disclosed 53 risk factors in its most recent earnings report. Callaway Golf reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Callaway Golf Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $16.43B | 29.11 | 8.72% | ― | 30.49% | 134.07% | |
64 Neutral | $4.75B | 22.10 | 25.98% | 1.23% | 8.77% | -2.02% | |
64 Neutral | $3.12B | 18.44 | 27.27% | ― | 6.24% | 10.22% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $2.52B | 28.84 | 3.97% | 8.64% | -37.17% | 84.41% | |
55 Neutral | $466.65M | -57.69 | -1.90% | 2.93% | 17.49% | 82.16% | |
40 Underperform | $5.19M | -0.65 | 3430.99% | ― | 28.80% | 92.99% |
* Consumer Cyclical Sector Average
CALY
Callaway Golf
14.13
4.11
41.02%
GOLF
Acushnet Holdings
81.31
0.19
0.23%
JOUT
Johnson Outdoors
45.00
2.98
7.08%
YETI
Yeti Holdings
42.79
6.72
18.63%
NWTG
Newton Golf Company
0.92
-0.50
-35.21%
AS
Amer Sports, Inc.
28.24
-4.32
-13.27%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.