CALY · Callaway Golf Company

Callaway Golf Company reported strong first quarter 2026 results, with net sales increasing 9.2% to $687.5 million, driven by a 9.5% increase in Golf Equipment segment sales and an 8.4% increase in Apparel, Gear and Other segment sales. The company highlighted strong demand for new products and a healthy start to the golf season. GAAP gross margin improved 250 basis points to 47.5%, while non-GAAP gross margin improved 260 basis points to 47.7%, benefiting from sales growth and margin initiatives including select price increases. GAAP net income from continuing operations rose 18.1% to $74.9 million, and non-GAAP net income from continuing operations surged 95.8% to $111.8 million. Adjusted EBITDA increased 31.1% to $163.7 million, despite approximately $18 million in incremental tariff expenses and lapping a $12 million one-time Japan lease benefit in the prior year. Management noted that the golf industry and consumer remain healthy despite macroeconomic uncertainty. The company raised its full-year 2026 net sales outlook to $2.015-$2.070 billion (from $1.98-$2.05 billion) and Adjusted EBITDA outlook to $211-$233 million (from $170-$195 million). Additionally, Callaway repurchased $79 million of shares through April 2026 and settled $258 million of convertible notes in cash upon maturity on May 1, 2026, leaving the company in a net cash position. The strong operational performance and increased guidance underscore the company's confidence in its strategic initiatives and market position.