CALY: Margin gains and stronger guidance support the focused golf strategy

Callaway Golf Company (CALY) shares rose 6.1% after Q3 2026 net sales and Adjusted EBITDA beat expectations. The company raised its full-year 2026 guidance, projecting net sales of $2.065B-$2.078B and Adjusted EBITDA of $272M-$280M. GAAP and non-GAAP gross margins expanded significantly year-over-year.

Callaway Golf (CALY) raised its 2026 adjusted EBITDA midpoint to $276 million, exceeding analyst estimates. Revenue midpoint was also increased to $2.072 billion. The company reported a 520 basis point increase in non-GAAP gross margin to 45% and a 17.3% rise in adjusted EBITDA, driven by price hikes and cost cuts.

Callaway (CALY) reported Q3 2026 revenue of $437M, down 6% YoY but ahead of expectations. Adjusted EBITDA rose 17% YoY to $36M. The company completed sales of non-core assets, reducing debt by $1.4B and launching a $200M share buyback. It plans a $15M investment in a 3D printing facility for titanium clubs. Market conditions were mixed, with US rounds played down 5% but sell-through up 6% on a 2-year basis. Callaway raised its full-year revenue forecast by $14M.

Callaway Golf (CALY) reported a 6% year-over-year revenue decline in Q3 due to strategic launch timing and lower-margin product rationalization. U.S. rounds played and retail sell-through also fell. Q4 revenue is expected to decrease, with adjusted EBITDA guidance negative due to seasonal factors and cost pressures. CEO Oliver Brewer highlighted margin expansion and market share growth opportunities, including 3D printing technology for titanium clubs.

Callaway Golf (CALY) reported Q3 2026 revenue of $436.9M, beating estimates by 2% and declining 5.6% year-on-year. Adjusted EPS was $0.12, significantly above the $0.01 estimate. Adjusted EBITDA was $35.9M, with an 8.2% margin. Q4 revenue guidance is $334.5M, below estimates, while full-year EBITDA guidance is $276M, above estimates. Operating and free cash flow margins improved.

Callaway Golf reported 3Q 2026 revenue of $436.9M, down 5.6% YoY, but net income turned positive to $45.7M. Golf equipment sales declined, while gross margin improved to 51.9% due to tariff refunds and cost initiatives. Segment performance varied, with apparel and gear showing income growth.