O'Keeffe Stevens Advisory believes Callaway Golf Company still has room to run after the sale of its TopGolf business. In its second-quarter 2026 investor letter, the firm highlighted that first-quarter net sales rose 9.2% to $687.5 million, adjusted EBITDA climbed 31.1% to $163.7 million, and non-GAAP net income from continuing operations increased 96%, with gross margin up roughly 260 basis points despite absorbing about $18 million of incremental tariff expense. Management raised its full-year outlook, and the firm noted that through April 30, Callaway repurchased 5.6 million shares at an average cost of $14.08, using $79 million of a $200 million authorization, and on May 1 settled $258 million of convertible notes in cash, remaining in a net cash position. O'Keeffe Stevens said the thesis continues to play out and that while the stock has materially appreciated, it still sees upside to numbers as management reduces debt and returns capital.
Callaway Golf CompanyStrong Q1 earnings beat, raised guidance, debt reduction, and share buybacks all point to improved financial health and shareholder returns.