Topgolf Callaway Brands (MODG) AI Stock Analysis

• Market Cap: $1.62B
• Dividend Yield: N/A
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.93
• Revenue Growth: -2.35%
• EPS Growth: -7104.57%
• Country: US
• Employees: 30,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): N/A
• Shares Outstanding: 183,865,620
• 10 Day Avg. Volume: 1,949,413
• 30 Day Avg. Volume: 1,899,745
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.24
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: -5.34
• 1Y Price Target: $10.88
• Price Target Upside: 23.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $9.50 ▲(7.83% Upside)

Topgolf Callaway Brands faces significant financial challenges, with declining revenues and high leverage impacting its financial performance. However, the recent earnings call provided a positive outlook, with raised guidance and improvements in key segments like Topgolf traffic and golf equipment. Technical indicators suggest a neutral trend, while valuation metrics highlight the company's current unprofitability. The overall score reflects these mixed signals, with financial performance being the most significant factor.

Positive Factors

Improved Topgolf Traffic

The increase in Topgolf traffic indicates stronger customer engagement and potential for sustained revenue growth in the entertainment segment.

Golf Equipment Segment Success

Strong performance in the golf equipment segment suggests robust demand and effective product strategies, supporting long-term profitability.

Strategic Focus and Flexibility

Divesting non-core assets like Jack Wolfskin enhances focus on core operations, potentially improving strategic execution and financial health.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term stability and growth opportunities.

Declining Revenue Growth

Declining revenue growth indicates challenges in market expansion and product adoption, potentially affecting future profitability.

Negative Profitability Margins

Negative profitability margins reflect operational inefficiencies and cost management issues, which could hinder long-term financial performance.

Topgolf Callaway Brands Business Overview & Revenue Model

Company Description

Topgolf Callaway Brands (MODG) is a leading global sports and entertainment company that operates in the golf and lifestyle sector. The company is best known for its innovative golf entertainment venues, which combine a high-tech driving range with a vibrant social atmosphere, attracting a diverse audience of golf enthusiasts and casual players alike. In addition to its entertainment offerings, Topgolf Callaway Brands also encompasses a wide range of golf equipment, apparel, and accessories, catering to both amateur and professional golfers.

How the Company Makes Money

Topgolf Callaway Brands generates revenue through multiple streams, primarily from its proprietary golf entertainment venues where customers pay for game play, food, and beverages. Each venue operates on a pay-per-game basis, with customers reserving bays for their groups. Additionally, the company earns money through food and beverage sales, which are a significant part of the overall customer experience. Another key revenue stream comes from the sale of golf equipment and accessories, including clubs, balls, and apparel, both within the venues and through online platforms. The company also benefits from partnerships with various brands for sponsorships and promotions, further enhancing its revenue potential. Seasonal events and corporate events hosted at the venues provide additional income, as businesses often rent spaces for team-building activities or client entertainment. Overall, the combination of venue operations, retail sales, and strategic partnerships contributes to the company's financial performance.

Topgolf Callaway Brands Financial Statement Overview

Summary

Topgolf Callaway Brands is facing financial challenges across all verticals. The income statement highlights declining revenues and negative profitability margins. The balance sheet shows high leverage, while cash flow analysis indicates declining free cash flow growth. The company needs to address these issues to improve financial stability and profitability.

Income Statement

Topgolf Callaway Brands has experienced declining revenue growth, with a negative growth rate of -1.13% in the TTM period. The company is facing significant profitability challenges, as indicated by negative net profit and EBIT margins. Gross profit margin remains relatively strong at 64.04%, but the overall profitability is hindered by high operating expenses.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 1.17 in the TTM period, indicating significant leverage. Return on equity is negative, reflecting the company's struggle to generate profits from shareholders' equity. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by -24.08% in the TTM period. The operating cash flow to net income ratio is below 1, indicating challenges in converting income into cash. Despite a positive free cash flow to net income ratio, the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.14B	4.24B	4.28B	4.00B	3.13B	1.59B
Gross Profit	2.65B	2.65B	2.65B	2.41B	1.86B	657.59M
EBITDA	-983.10M	-973.60M	484.70M	455.10M	707.45M	-5.69M
Net Income	-1.49B	-1.45B	95.00M	157.90M	322.00M	-126.93M
Balance Sheet
Total Assets	7.61B	7.64B	9.12B	8.59B	7.75B	1.98B
Cash, Cash Equivalents and Short-Term Investments	683.50M	445.00M	398.70M	180.20M	352.22M	366.12M
Total Debt	2.90B	4.46B	4.36B	2.91B	2.95B	894.87M
Total Liabilities	5.12B	5.23B	5.24B	4.82B	4.06B	1.30B
Stockholders Equity	2.49B	2.41B	3.88B	3.77B	3.68B	675.64M
Cash Flow
Free Cash Flow	275.00M	86.60M	-118.10M	-570.60M	-44.02M	188.98M
Operating Cash Flow	471.80M	382.00M	364.70M	-35.10M	278.26M	228.24M
Investing Cash Flow	17.00M	-297.30M	-542.90M	-535.10M	-161.86M	-59.21M
Financing Cash Flow	72.50M	-23.60M	375.80M	425.30M	-124.10M	96.07M

Topgolf Callaway Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.81
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MODG, the sentiment is Negative. The current price of 8.81 is below the 20-day moving average (MA) of 9.34, below the 50-day MA of 9.40, and above the 200-day MA of 8.01, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.26 is Neutral, neither overbought nor oversold. The STOCH value of 16.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MODG.

Topgolf Callaway Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	73 Outperform	$4.42B	20.13	27.51%	1.22%	3.83%	28.57%
OSW	70 Outperform	$2.30B	31.77	13.53%	0.69%	7.27%	45.12%
YETI	69 Neutral	$2.64B	15.50	23.49%	―	3.63%	-2.60%
JOUT	64 Neutral	$407.42M	―	-8.33%	3.29%	-3.56%	-407.47%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MODG	54 Neutral	$1.62B	-1.08	-46.53%	―	-2.35%	-7104.57%
XPOF	42 Neutral	$314.02M	-3.67	―	―	-3.02%	-517.53%

Topgolf Callaway Brands Corporate Events

Topgolf Callaway Brands Board Restructures After Director Resignation

On August 25, 2025, Scott M. Marimow resigned from his position as a director at Topgolf Callaway Brands Corp. His departure was not due to any disagreements with the company’s operations or policies. Subsequently, on August 26, 2025, the company’s Board of Directors decided to reduce its size to 10 members.

The most recent analyst rating on (MODG) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Topgolf Callaway Brands stock, see the MODG Stock Forecast page.

Topgolf Callaway Brands’ Earnings Call Highlights Growth Amid Challenges

The recent earnings call for Topgolf Callaway Brands Corp. painted a picture of robust performance across its various business segments, despite some challenges. The company expressed optimism by raising its full-year guidance, buoyed by improved traffic trends at Topgolf. However, the call did not shy away from discussing hurdles such as increased tariff impacts, declines in same venue sales at Topgolf, and a softer market in Asia and Central Europe. Overall, the positive developments, such as strategic sales and increased liquidity, seemed to outweigh the negatives.

Topgolf Callaway Brands Exceeds Q2 Expectations, Raises 2025 Outlook

Topgolf Callaway Brands Corp. is a tech-enabled company specializing in modern golf and active lifestyle products, including golf equipment, apparel, and entertainment services, with a portfolio of global brands such as Topgolf and Callaway Golf. In its latest earnings report for the second quarter of 2025, Topgolf Callaway Brands announced a consolidated net revenue of $1,111 million, exceeding expectations, and raised its full-year guidance. The company also completed the sale of Jack Wolfskin, which significantly improved its liquidity position.