XML 35 R25.htm IDEA: XBRL DOCUMENT v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Our operating segments are based on how our Chief Executive Officer as the designated Chief Operating Decision Maker (“CODM”) makes decisions about assessing performance and allocating resources. Our CODM primarily evaluates segment performance using segment operating income (loss), which is calculated by taking total segment net sales less segment operating expenses. Segment operating expenses include operating expenses directly attributable to the segment as well as certain shared corporate administration services and other costs which are allocated to the reportable segments. Segment operating expenses exclude certain non-recurring items and other corporate costs, such as interest expense, interest income and taxes. Our CODM evaluates the profitability of each reportable segment based on segment operating income (loss) because it provides insight to operational leverage and other key operational metrics for each segment. Segment operating income (loss) is also used in the annual budget and forecasting process, and budget-to-actual and forecast-to-actual variances are considered when determining the appropriate allocation of company resources to each of our segments. Our CODM does not evaluate a measure of assets when assessing segment performance.
We have two operating and reportable segments:
•Golf Equipment, which is comprised of product sales and expenses that encompass golf club and golf ball products, including Callaway Golf-branded woods, hybrids, irons, wedges, Odyssey putters, packaged sets, Callaway Golf-branded golf balls and sales of pre-owned golf clubs; and
•Apparel, Gear and Other, which is comprised of product sales and expenses for the TravisMathew golf and lifestyle apparel and accessories business, the Callaway soft goods business and the OGIO business, which consists of golf apparel and accessories (including golf bags), and storage gear for sport and personal use. This segment also includes royalties from licensing of our trademarks and service marks for various soft goods products.
There were no significant intersegment transactions during the three and six months ended June 30, 2026 or 2025.
The following table contains information utilized by our CODM to evaluate our operating segments for the periods presented below (in millions):
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Golf Equipment:
Net sales$430.3 $411.8 $916.5 $855.7 
Less: Cost of sales227.9 237.7 493.3 484.8 
Gross profit202.4 174.1 423.2 370.9 
Less: Selling, general and administrative expense89.4 85.5 180.4 167.8 
Less: Research and development expense12.7 12.4 24.9 25.1 
Income before income taxes$100.3 $76.2 $217.9 $178.0 
Apparel, Gear and Other:
Net sales$181.9 $188.6 $383.2 $374.3 
Less: Cost of sales87.3 98.9 181.6 197.0 
Gross profit94.6 89.7 201.6 177.3 
Less: Selling, general and administrative expense58.1 57.5 110.1 106.5 
Less: Research and development expense3.1 2.9 6.1 6.1 
Income before income taxes$33.4 $29.3 $85.4 $64.7 
Segment income from continuing operations$133.7 $105.5 $303.3 $242.7 
Reconciling items:
Non-recurring items (1)
7.5 (0.9)3.5 (2.2)
Corporate costs and expenses (2)
(26.4)(30.3)(53.8)(63.1)
Total reconciling items:(18.9)(31.2)(50.3)(65.3)
Income (loss) from operations
114.8 74.3 253.0 177.4 
Interest income (expense), net
(4.6)(15.3)(10.4)(30.2)
Other income (expense), net
1.4 (0.4)4.3 2.0 
Total other income (expense), net
(3.2)(15.7)(6.1)(28.2)
Income (loss) from equity method investments(1.0)— (28.7)— 
Income (loss) from continuing operations, before income taxes
$110.6 $58.6 $218.2 $149.2 
(1) Includes non-cash amortization of acquired intangible assets and non-recurring items primarily consisting of tariff refunds, costs related to a relocation to a new warehouse in the United Kingdom as a result of the sale of the Jack Wolfskin business, restructuring and reorganization charges relating to the Transformation Plan (see Note 18), and the write-off of software assets stemming from our separation from Topgolf.
(2) Corporate costs and expenses include corporate general and administrative expenses not utilized by management in determining segment profitability as well as adjustments for discontinued operations related to indirect costs that were previously allocated to a segment.
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Depreciation and amortization:
Golf Equipment$5.5 $6.3 $11.7 $13.2 
Apparel, Gear and Other4.0 4.9 8.6 9.7 
Total depreciation and amortization$9.5 $11.2 $20.3 $22.9 
We market our products in the United States and internationally, with our principal international markets being Asia and Europe. The tables below contain information about the geographical areas in which we operate. Net sales are attributed to the location to which the product was shipped. Long-lived assets are based on location of domicile.
Three Months Ended June 30,Six Months Ended June 30,
(in millions)
2026202520262025
Net sales:
United States$414.7 $401.1 $863.5 $817.2 
Europe64.8 64.6 148.0 128.9 
Asia90.3 91.9 193.9 198.7 
Rest of World42.4 42.8 94.3 85.2 
Total net sales$612.2 $600.4 $1,299.7 $1,230.0 
June 30, 2026December 31, 2025
Long-lived assets
United States$129.0 $136.4 
Europe9.6 4.2 
Asia11.2 12.9 
Rest of World5.9 6.0 
Total long-lived assets$155.7 $159.5