Q2 2026 Callaway Golf Co Earnings Call Transcript
Key Points
- Callaway Golf Co (CALY) delivered a strong Q2 2026 with revenue of $612 million, up 2% year-over-year, and adjusted EBITDA of $125 million, up 36%, both exceeding guidance.
- Gross margin expanded significantly by 460 basis points in Q2 and 360 basis points in the first half, driven by successful margin initiatives and portfolio actions.
- The company has transformed into a pure-play golf company with a fortified balance sheet, paying off $1.4 billion in debt and ending the quarter in a net cash position.
- Golf ball revenue grew 15% in Q2, with US market share reaching a record high of over 23%, up 250 basis points year-over-year.
- The company raised its full-year adjusted EBITDA guidance by $31 million at the midpoint, reflecting strong first-half performance and improved tariff estimates.
- Capital returns to shareholders are underway, with approximately $84 million in share repurchases completed in the first half of 2026.
- Callaway Golf Co (CALY) faces ongoing cost pressures from geopolitical activity, including increased prices for commodities like tungsten and petrochemical-based raw materials.
- The company expects second-half revenue and profit to be negatively impacted by strategic initiatives, including extending product life cycles and rationalizing lower-margin business.
- Q3 2026 guidance indicates a year-over-year decrease in adjusted EBITDA, driven by lower revenue, reduced dividend income, and cost of living increases.
- The company is experiencing FX headwinds, which negatively impacted the full-year revenue guidance by approximately $5 million.
- Market conditions in Korea remain weak, with the market down approximately 10%, and the company anticipates tougher second-half comparisons following strong prior-year growth.
- The planned closure of four Travis Matthew stores in Q4 will incur financial charges, reflecting ongoing portfolio rationalization.
Good day and welcome to the Callaway Golf Company Second Quarter 2026 Financial Results Conference Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Mr. Patrick Burke, Senior Vice President of Investor Relations and Treasurer. Please go ahead.
Good afternoon and welcome to Callaway Golf Company's second quarter earnings conference call. I'm Patrick Burke, Senior Vice President of Investor Relations and Treasury. Joining me on today's call are Chip Brewer, our President and Chief Executive Officer, and Brian Lynch, our Chief Financial Officer and Chief Legal Officer.
Earlier today, the company issued a press release announcing its second quarter 2026 financial results. Our earnings presentation as well as the earnings press release are both available on our investor relations website under the financial results tab.
Aside from revenue, the financial numbers reported and discussed on today
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