📊 CALY Key Takeaways
Investment Thesis
Callaway Golf faces significant profitability headwinds with a net loss of $409.3M despite positive operating cash flow, indicating substantial non-operational charges or one-time impairments. While the company maintains reasonable liquidity and generates solid free cash flow, the negative net margin (-19.9%), deteriorating ROE (-19.8%), and revenue decline signal structural challenges in the competitive sporting goods market.
CALY Strengths
- Strong free cash flow generation of $302.2M (14.7% FCF margin) demonstrates underlying business cash generation capability
- Solid gross margin of 42.1% indicates pricing power and reasonable cost management at the production level
- Adequate liquidity with $903.2M cash on hand and 1.36x current ratio provides financial flexibility
- Positive operating cash flow of $334.0M covers capital expenditure with significant surplus
CALY Risks
- Severe net loss of $409.3M suggests major impairments, restructuring charges, or significant non-cash write-downs that obscure operational performance
- Negative ROE (-19.8%) and ROA (-5.6%) indicate shareholder capital is being destroyed despite positive operating cash flow
- Revenue decline of 0.8% YoY combined with weakening profitability suggests market share loss or demand headwinds in the golf equipment sector
- Leverage remains elevated at 0.68x debt/equity with $1.4B long-term debt; weak profitability limits deleveraging capacity
- Interest coverage of only 2.2x provides minimal margin of safety for debt servicing if operational cash flows deteriorate
Key Metrics to Watch
- Net income trend and identification of one-time charges vs. operational losses
- Revenue growth trajectory and market share trends in golf equipment and apparel segments
- Operating margin sustainability and cost restructuring progress
- Debt reduction progress and free cash flow allocation to deleveraging
- Return on equity recovery as operational performance stabilizes
CALY Financial Metrics
💡 AI Analyst Insight
Callaway Golf Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CALY Profitability Ratios
CALY vs Default Sector
How Callaway Golf Co compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CALY Balance Sheet & Liquidity
CALY 5-Year Financial Trend
5-Year Trend Summary: Callaway Golf Co's revenue has declined by 32% over the 5-year period, indicating business contraction. The most recent EPS of $0.50 reflects profitable operations.
CALY Growth Metrics (YoY)
CALY Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $934.0M | $2.1M | $-0.02 |
| Q2 2025 | $1.1B | $2.1M | $0.11 |
| Q1 2025 | $1.1B | $2.1M | $0.01 |
| Q3 2024 | $1.0B | -$3.6M | $-0.02 |
| Q2 2024 | $1.2B | $62.1M | $0.32 |
| Q1 2024 | $1.1B | $6.5M | $0.04 |
| Q3 2023 | $988.5M | $29.7M | $0.16 |
| Q2 2023 | $1.1B | $105.4M | $0.53 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CALY Capital Allocation
CALY SEC Filings
Access official SEC EDGAR filings for Callaway Golf Co (CIK: 0000837465)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 20, 2026 | 4 | xslF345X06/wk-form4_1774037360.xml | View → |
| Mar 18, 2026 | 4 | xslF345X06/wk-form4_1773868436.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773693409.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773693382.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773693358.xml | View → |
❓ Frequently Asked Questions about CALY
What is the AI rating for CALY?
Callaway Golf Co (CALY) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CALY's key strengths?
Strong free cash flow generation of $302.2M (14.7% FCF margin) demonstrates underlying business cash generation capability. Solid gross margin of 42.1% indicates pricing power and reasonable cost management at the production level.
What are the risks of investing in CALY?
Severe net loss of $409.3M suggests major impairments, restructuring charges, or significant non-cash write-downs that obscure operational performance. Negative ROE (-19.8%) and ROA (-5.6%) indicate shareholder capital is being destroyed despite positive operating cash flow.
What is CALY's revenue and growth?
Callaway Golf Co reported revenue of $2.1B.
Does CALY pay dividends?
Callaway Golf Co does not currently pay dividends.
Where can I find CALY SEC filings?
Official SEC filings for Callaway Golf Co (CIK: 0000837465) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CALY's EPS?
Callaway Golf Co has a diluted EPS of $-2.20.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.