Callaway Golf Company (CALY) Q1 CY2026 Highlights: <\/p>\n
Revenue: $687.5 million vs analyst estimates of $651.8 million (9.2% year-on-year growth, 5.5% beat)<\/p>\n
EPS (GAAP): $0.47 vs analyst estimates of $0.40 (17% beat)<\/p>\n
Adjusted EBITDA: $163.7 million vs analyst estimates of $116.9 million (23.8% margin, 40% beat)<\/p>\n
The company lifted its revenue guidance for the full year to $2.04 billion at the midpoint from $2.02 billion, a 1.4% increase<\/p>\n
EBITDA guidance for the full year is $222 million at the midpoint, above analyst estimates of $187.7 million<\/p>\n
Operating Margin: 20.1%, up from 16.4% in the same quarter last year<\/p>\n
Free Cash Flow was -$176 million compared to -$155.1 million in the same quarter last year<\/p>\n
Market Capitalization: $2.69 billion<\/p>\n
“We had a strong start to the year with first quarter revenue increasing 9% and Adjusted EBITDA increasing 31%,” commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company.<\/p>\n
Company Overview <\/p>\n
Formed between the merger of Callaway and Topgolf, Callaway Golf Company (NYSE:CALY) sells golf equipment and operates technology-driven golf entertainment venues.<\/p>\n
Revenue Growth <\/p>\n
A company\u2019s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Callaway Golf Company grew its sales at a weak 3.3% compounded annual growth rate. This was below our standard for the consumer discretionary sector and is a tough starting point for our analysis.<\/p>\n
![\"Callaway](\"https:\/\/www.europesays.com\/golf\/wp-content\/uploads\/2026\/05\/aa03fde3f10bc1a69752a98999b651dd.png\")
Callaway Golf Company Quarterly Revenue <\/p>\n
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Callaway Golf Company\u2019s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 29.5% annually. Note that COVID hurt Callaway Golf Company\u2019s business in 2020 and part of 2021, and it bounced back in a big way thereafter.<\/p>\n
Callaway Golf Company Year-On-Year Revenue Growth <\/p>\n
This quarter, Callaway Golf Company reported year-on-year revenue growth of 9.2%, and its $687.5 million of revenue exceeded Wall Street\u2019s estimates by 5.5%. Company management is currently guiding for flat sales next quarter.<\/p>\n
Story Continues <\/p>\n
Looking further ahead, sell-side analysts expect revenue to decline by 2.7% over the next 12 months. Although this projection is better than its two-year trend, it\u2019s hard to get excited about a company that is struggling with demand.<\/p>\n
ALSO WORTH WATCHING: Nvidia\u2019s Quiet Partner. Nvidia\u2019s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.<\/p>\n
Every AI server needs specialized infrastructure the chip companies don\u2019t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE<\/a>.<\/p>\n Operating Margin <\/p>\n Operating margin is a key measure of profitability. Think of it as net income – the bottom line – excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.<\/p>\n Callaway Golf Company\u2019s operating margin has generally stayed the same over the last 12 months, and we generally like to see margin increases due to economies of scale and cost efficiency over time.<\/p>\n This quarter, Callaway Golf Company generated an operating margin profit margin of 20.1%, up 3.7 percentage points year on year. This increase was a welcome development and shows it was more efficient.<\/p>\n Earnings Per Share <\/p>\n We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company\u2019s growth is profitable.<\/p>\n Sadly for Callaway Golf Company, its EPS declined by 9.4% annually over the last five years while its revenue grew by 3.3%. However, its operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.<\/p>\n In Q1, Callaway Golf Company reported EPS of $0.47, up from $0.32 in the same quarter last year. This print easily cleared analysts\u2019 estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Callaway Golf Company\u2019s full-year EPS of $0.32 to grow 58.4%.<\/p>\n Key Takeaways from Callaway Golf Company\u2019s Q1 Results <\/p>\n We were impressed by Callaway Golf Company\u2019s optimistic EBITDA guidance for next quarter, which blew past analysts\u2019 expectations. We were also excited its EBITDA outperformed Wall Street\u2019s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 5.2% to $15.52 immediately after reporting.<\/p>\n Indeed, Callaway Golf Company had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it\u2019s free<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Golf entertainment and gear company Callaway Golf Company (NYSE:CALY) announced better-than-expected revenue in Q1 CY2026, with sales up…\n","protected":false},"author":2,"featured_media":5217,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3017],"tags":[3249,3053,3099,3631,3254,3632],"class_list":["post-6282","post","type-post","status-publish","format-standard","has-post-thumbnail","category-callaway","tag-analyst-estimates","tag-callaway","tag-callaway-golf-company","tag-golf-entertainment","tag-operating-margin","tag-revenue-growth"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/golf\/wp-json\/wp\/v2\/posts\/6282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/golf\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/golf\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/golf\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/golf\/wp-json\/wp\/v2\/comments?post=6282"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/golf\/wp-json\/wp\/v2\/posts\/6282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/golf\/wp-json\/wp\/v2\/media\/5217"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/golf\/wp-json\/wp\/v2\/media?parent=6282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/golf\/wp-json\/wp\/v2\/categories?post=6282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/golf\/wp-json\/wp\/v2\/tags?post=6282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} Callaway Golf Company Trailing 12-Month Operating Margin (GAAP) <\/p>\n
Callaway Golf Company Trailing 12-Month EPS (GAAP) <\/p>\n