Callaway Golf Posts Q2 Earnings Beat with Higher Sales and Margins

Callaway Golf Company reported second‑quarter net sales of $612.2 million, a 2.0% year‑over‑year increase driven by a 4.5% rise in its Golf Equipment segment, which includes clubs and balls. The growth was partially offset by a 3.6% decline in the Apparel, Gear and Other segment due to shipment timing and foreign‑exchange headwinds in Asia.

GAAP gross margin expanded by 620 basis points to 50.1% of net sales, while non‑GAAP margin rose 460 basis points to 48.5%, helped by $10.8 million of non‑recurring tariff refunds. Net income from continuing operations was $75.8 million on a GAAP basis and $73.8 million on a non‑GAAP basis. Adjusted EBITDA reached $124.9 million, a 35.8% increase year‑over‑year. Earnings per share came in at $0.39, beating the consensus estimate of $0.35.

The company’s shares rose to $19.54 after the release, and the market capitalization stands at about $3.5 billion. The balance sheet showed a net cash position with $278 million in cash and cash equivalents and $74 million of debt, including $23 million in financing leases.