Topgolf Callaway Brands (NYSE: MODG) reported mixed results for the third quarter of 2024, with consolidated revenues reaching $1.01 billion, down 2.7% compared to the same period last year. Despite market headwinds, the company’s core golf equipment business showed resilience.

Key Financial Highlights:

• Q3 consolidated revenue: $1.01 billion (down 2.7% year-over-year)
• Adjusted EBITDA: $119.8 million (down 26.6%)
• Golf Equipment segment revenue: $293.5 million (flat year-over-year)

The Callaway brand continued its market dominance, maintaining its #1 position in U.S. golf club market share. The company also achieved record U.S. market share in golf balls during the quarter, highlighting successful strategic investments in this category.

Segment Performance:

• Topgolf revenue increased 1.2% to $453.2 million
• Golf Equipment segment remained stable at $293.5 million
• Active Lifestyle segment declined 11.1% to $266.2 million

“We are pleased to announce results that exceeded our expectations for Q3 amid a challenging macroeconomic backdrop,” said Chip Brewer, President and CEO of Topgolf Callaway Brands.

Looking ahead, the company adjusted its full-year 2024 revenue guidance to approximately $4.2 billion, with Topgolf revenue expected to reach $1.79 billion. Management also noted ongoing work to separate Topgolf from the core business to create additional shareholder value.

The company maintained a strong liquidity position of $863 million, representing a $129 million increase year-over-year, while reducing inventory levels by $70.1 million compared to the previous year.