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Revenue Recognition | 9 Months Ended
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Sep. 30, 2025
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition We primarily recognize revenue from the sale of our products and the operation of our Topgolf venues. The following table presents our revenue disaggregated by operating and reportable segment and major category for the periods presented (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Topgolf: |  |  |  |  |  |  |
Venues | $ | 458.0 |  |  | $ | 428.9 |  |  | $ | 1,306.1 |  |  | $ | 1,308.3 |
Other business lines | 14.2 |  |  | 24.3 |  |  | 45.1 |  |  | 62.1 |
Total Topgolf | $ | 472.2 |  |  | $ | 453.2 |  |  | $ | 1,351.2 |  |  | $ | 1,370.4 |
Golf Equipment: |  |  |  |  |  |  |
Golf clubs | $ | 234.0 |  |  | $ | 226.0 |  |  | $ | 886.7 |  |  | $ | 882.1 |
Golf balls | 71.3 |  |  | 67.5 |  |  | 273.9 |  |  | 275.1 |
Total Golf Equipment | $ | 305.3 |  |  | $ | 293.5 |  |  | $ | 1,160.6 |  |  | $ | 1,157.2 |
Active Lifestyle: |  |  |  |  |  |  |
Apparel | $ | 96.1 |  |  | $ | 180.6 |  |  | $ | 372.1 |  |  | $ | 485.2 |
Gear, accessories & other | 60.4 |  |  | 85.6 |  |  | 252.9 |  |  | 302.1 |
Total Active Lifestyle | $ | 156.5 |  |  | $ | 266.2 |  |  | $ | 625.0 |  |  | $ | 787.3 |
Total Consolidated | $ | 934.0 |  |  | $ | 1,012.9 |  |  | $ | 3,136.8 |  |  | $ | 3,314.9 |
Product sales at our Topgolf operating segment primarily include the sale of venue merchandise such as golf clubs, golf balls, apparel, and gear and accessories as well as franchise equipment sales. During the three and nine months ended September 30, 2025, Topgolf product sales were $3.4 million and $10.9 million, respectively. During the three and nine months ended September 30, 2024, Topgolf product sales were $4.4 million and $14.1 million, respectively. Product and Service Revenue We sell our Golf Equipment products and Active Lifestyle products in the United States and internationally, with our principal international regions being Europe and Asia. Revenue for our Topgolf operating segment is predominately in the United States given that we have significantly more domestic venues than international venues. Revenue related to other business lines at Topgolf is primarily in the United States, in addition to certain regions within Europe and Asia. The following table summarizes our revenue by major geographic region for the periods presented (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Revenue by Major Geographic Region: |  |  |  |  |  |  |
United States | $ | 749.9 |  |  | $ | 724.6 |  |  | $ | 2,402.5 |  |  | $ | 2,444.9 |
Europe | 67.7 |  |  | 136.6 |  |  | 303.1 |  |  | 392.1 |
Asia | 90.6 |  |  | 127.0 |  |  | 319.2 |  |  | 363.7 |
Rest of World | 25.8 |  |  | 24.7 |  |  | 112.0 |  |  | 114.2 |
Total Consolidated | $ | 934.0 |  |  | $ | 1,012.9 |  |  | $ | 3,136.8 |  |  | $ | 3,314.9 |
Licensing, Royalty and Other Income We have licensing and royalty income on non-cancelable sales-type leases and operating lease agreements for Toptracer installations and Swing Suite licensing agreements at our Topgolf operating segment (see Note 5), in addition to income from licensing agreements for apparel and soft good products in our Active Lifestyle operating segment. The following table summarizes these revenues by operating segment for the periods presented (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Topgolf | $ | 14.5 |  |  | $ | 17.3 |  |  | $ | 44.4 |  |  | $ | 43.8 |
Active Lifestyle | 5.2 |  |  | 6.2 |  |  | 21.3 |  |  | 20.8 |
Total | $ | 19.7 |  |  | $ | 23.5 |  |  | $ | 65.7 |  |  | $ | 64.6 |
Deferred Revenue Our deferred revenue balance includes short-term and long-term deferred revenue which consists primarily of revenue from the sale of gift cards, event deposits, loyalty points, memberships and prepaid sponsorships at Topgolf, virtual currency and game credits related to digital golf games, as well as upfront territory fees and upfront franchise fees received from international franchise partners. The following table provides a reconciliation of activity related to our short-term deferred revenue balance for the periods presented (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Beginning Balance (1) | $ | 86.3 |  |  | $ | 97.4 |  |  | $ | 96.0 |  |  | $ | 110.9 |
Deferral of revenue | 124.4 |  |  | 158.8 |  |  | 410.0 |  |  | 459.9 |
Revenue recognized | (124.4) |  |  | (151.1) |  |  | (397.3) |  |  | (446.0) |
Breakage | (8.7) |  |  | (9.0) |  |  | (29.9) |  |  | (29.8) |
Foreign currency translation and other | (0.1) |  |  | — |  |  | 0.2 |  |  | 1.1 |
Sale of business line | — |  |  | — |  |  | (1.5) |  |  | — |
Ending Balance | $ | 77.5 |  |  | $ | 96.1 |  |  | $ | 77.5 |  |  | $ | 96.1 |
(1) Beginning balances for the three months ended September 30, 2025 and 2024 represent ending balances as of June 30, 2025 and 2024, respectively. Beginning balances for the nine months ended September 30, 2025 and 2024 represent ending balances as of December 31, 2024 and 2023, respectively.
As of September 30, 2025 and December 31, 2024, our long-term deferred revenue balance was $7.0 million and $7.0 million, respectively, which is included in other long-term liabilities on our condensed consolidated balance sheets. The following table summarizes the amount of the deferred revenue recognized during the three and nine months ended September 30, 2025 and 2024 that were deferred as of December 31, 2024 and 2023, respectively (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Deferred revenue recognized from prior year ending balance (excluding breakage) | $ | 5.1 |  |  | $ | 10.0 |  |  | $ | 58.6 |  |  | $ | 61.5 |
Variable Consideration We recognize revenue based on the amount of consideration we expect to receive from customers for the sale of our products and services adjusted for estimates of variable consideration related to sales returns, discounts and allowances, sales promotions and sales programs, and price concessions that we offer. These estimates are based on the amounts earned or expected to be claimed by customers. The following table provides a reconciliation of the activity related to our short-term sales program incentives for the periods presented (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Beginning Balance | $ | 28.9 |  |  | $ | 24.3 |  |  | $ | 19.8 |  |  | $ | 16.5 |
Additions | 10.6 |  |  | 10.3 |  |  | 43.6 |  |  | 37.3 |
Credits issued | (10.3) |  |  | (8.3) |  |  | (32.6) |  |  | (26.7) |
Foreign currency translation and other | (0.3) |  |  | 1.2 |  |  | 0.4 |  |  | 0.4 |
Sale of business line | — |  |  | — |  |  | (2.3) |  |  | — |
Ending Balance | $ | 28.9 |  |  | $ | 27.5 |  |  | $ | 28.9 |  |  | $ | 27.5 |
Our provision for the sales return liability fluctuates with the seasonality of the business. Actual sales returns are more heavily weighted toward the second half of the year as the golf season comes to an end. The following table provides a reconciliation of the activity related to our sales return reserve for the periods presented (in millions):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Beginning Balance | $ | 93.7 |  |  | $ | 92.6 |  |  | $ | 67.7 |  |  | $ | 55.9 |
Provision | 27.4 |  |  | 36.8 |  |  | 152.5 |  |  | 152.4 |
Sales returns | (28.5) |  |  | (28.5) |  |  | (122.7) |  |  | (107.4) |
Sale of business line | — |  |  | — |  |  | (4.9) |  |  | — |
Ending Balance | $ | 92.6 |  |  | $ | 100.9 |  |  | $ | 92.6 |  |  | $ | 100.9 |
As of September 30, 2025 and December 31, 2024, the cost recovery of inventory associated with the sales return liability was $40.8 million and $30.4 million, respectively, and is included in other current assets on our condensed consolidated balance sheets. As of September 30, 2025 and December 31, 2024, the accrued rebate liability associated with our sales program was $18.9 million and $30.2 million, respectively, which are included in accounts payable and accrued expenses on our condensed consolidated balance sheets.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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