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Highlights

  • Topgolf Callaway Brands reports a 29.1% YoY revenue increase in FY24, reaching USD 4.24 billion
  • The company faced a net loss of USD 1,447.7 million in FY24 due to increased impairment expenses.
  • Topgolf and Verizon launch a multiyear partnership to offer exclusive perks for Verizon’s 114 million customers
  • 2025 consolidated net revenues for the company is expected to range between USD 4.0 billion and USD 4.185 billion
  • Despite challenges, Topgolf Callaway anticipates a 6% organic EBITDA growth for its core business in 2025

Topgolf Callaway Brands Corp. (NYSE:MODG) is a dynamic golf and active lifestyle company offering a variety of products and experiences. Its family of brands includes Odyssey, Jack Wolfskin, Callaway Golf, World Golf Tour, Topgolf, TravisMathew, Toptracer, OGIO, and others, providing golf equipment, apparel, and entertainment experiences.

For the financial year 2024 (FY24), Topgolf reported total revenue of USD 4,239.3 million, a 29.1% increase from FY23’s USD 3,284.8 million, primarily driven by new venues, though partially offset by a decline in same venue sales.

The company faced a net loss of USD 1,447.7 million in FY24, down from a net income of USD 95.0 million in FY23, largely due to increased goodwill and asset impairment expenses.

Cash from operating activities (YTD) increased by 4.7%, reaching USD 382.0 million, influenced by higher impairment expenses but partly offset by decreased net income.

Cash and cash equivalents grew by 13.1% Yoy to USD 445.0 million in FY24, benefiting from operating cash inflows, though partially impacted by outflows from investing and financing activities.

Recent Business Update

On March 10, 2025, Topgolf and Verizon announced a multiyear partnership to enhance the experience for Verizon's 114 million customers. Through exclusive perks in the Verizon app, the collaboration offers seasonal discounts, event packages, gift cards, and VIP experiences, ensuring affordable access to Topgolf’s entertainment nationwide.

Company Outlook

Topgolf Callaway Brands expects its consolidated net revenues for 2025 to range between USD 4.0 billion and USD 4.185 billion, a decline from USD 4.24 billion in 2024. Core Business revenue is projected to reach USD 2.275 billion and USD 2.35 billion, while Topgolf revenue is expected to fall between USD 1.725 billion and USD 1.835 billion.

The company forecasts consolidated adjusted EBITDA of USD 415 million to USD 505 million, down from USD 588 million in 2024, primarily due to USD 120 million in challenges from foreign exchange, tariffs, incentive compensation resets, and Topgolf’s standalone public company costs of USD 15 million.

Despite this, organic core business EBITDA is expected to grow 6%. For Q1 2025, net revenues are expected to be between USD 1.045 billion and USD 1.085 billion, with adjusted EBITDA between USD 125 million and USD 145 million, compared to Q1 2024 net revenues of USD 1.14 billion and adjusted EBITDA of USD 161 million.

Stock Information

The stock price of MODG has appreciated by around 7.13% in the past week however, it has depreciated by around 11.51% and 39.24% in the past month and past six months, respectively. The stock’s 52-week low and high spans from USD 5.59 to USD 16.85. As of March 20, 2025, the stock’s closing price is USD 6.61.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is March 20, 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.