0000837465-26-000017
SEC filingRevenue declined 37.1% to $687.5M as the company completed strategic divestitures, yet operating income more than doubled and net income surged over 43-fold—driven by margin expansion, disciplined cost management, and the structural simplification of the business.
Operating income rose to $138.2 million, an increase of 107.8% year-over-year, and operating margin expanded to 20.1%. This reflects not only gross margin gains but also the impact of corporate cost realignment following the separation of non-core businesses. As noted in management commentary, corporate costs and expenses include general and administrative items not allocated to segments—and adjustments related to discontinued operations reflect indirect costs previously allocated to those businesses. The reduction in such allocations contributes meaningfully to the operating income growth observed this quarter.
Net cash provided by operating activities was -$169.0 million, and free cash flow was -$176.0 million after $7.0 million in capital expenditures. This outflow is consistent with the company’s seasonal working capital cycle: inventory buildup for the golf season typically begins in the fourth quarter and continues through the first quarter and into early Q2. Management explicitly notes that inventory levels are influenced by both the timing and success of new product launches—a dynamic that remains central to near-term liquidity planning. Interim operating results, including cash flow, are not indicative of full-year outcomes, as stated in management’s forward-looking context.