Callaway Golf (CALY) Posts Q3 EPS Loss Reviving Bearish Profitability Narratives

Callaway Golf (CALY) has just posted its FY 2025 third quarter results, with revenue of US$934 million and a basic EPS loss of US$0.08, setting a cautious tone around profitability. Over the past few quarters, revenue has moved from US$1,157.8 million in Q2 2024 to US$1,092.3 million in Q1 2025, US$1,110.5 million in Q2 2025 and now US$934 million in Q3 2025. Basic EPS has swung from a loss of US$8.23 in Q4 2024 to profits of US$0.34 in Q2 2024 and US$0.11 in Q2 2025, before slipping back into the red this quarter. For investors, the latest print keeps the focus firmly on how management can firm up margins and reduce earnings volatility from here.

See our full analysis for Callaway Golf.

With the headline numbers on the table, the next step is to see how this earnings profile lines up against the widely followed narratives around Callaway Golf, and where those stories might need to be updated.

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Losses Still Heavy On A Full Year View

• On a trailing 12 month basis, Callaway Golf booked total revenue of US$4.1b and a net loss of US$1.5b, which works out to basic EPS of a loss of US$8.19.
• Bears argue that the roughly 79.5% per year earnings decline over five years points to a business model under pressure, and the trailing loss profile backs that up.
  • The trailing US$1.5b loss and US$8.19 EPS loss line up with the cautious view that profitability has been a consistent weak spot rather than a one off blip.
  • At the same time, bears flag risks around capital intensive Topgolf expansion and rising costs, and these large losses give that concern more weight because they limit room for error.

Over the last year, skeptics have focused on whether Topgolf and the broader business can carry this much loss-making weight without eroding long term flexibility, and the current figures sit squarely in that cautious camp. 🐻 Callaway Golf Bear Case

Price To Sales Looks Compressed Versus Peers

• The shares trade on a P/S of 0.6x compared with 0.9x for the US Leisure industry and 1.4x for peers, while the current share price of US$12.59 sits above a DCF fair value of about US$9.13.
• Bulls point to the low 0.6x P/S ratio as a draw for value minded investors, but the data gives a mixed read on that argument.
  • The discount to industry and peer P/S multiples supports the idea that the stock is priced more cautiously against its sales base than many competitors.
  • However, the share price sitting above DCF fair value suggests cash flow based models are less supportive, which limits how clean the bullish valuation case looks right now.

Quarterly Swings Keep Profit Story Choppy

• Over the last three reported quarters, revenue moved from US$1,092.3 million in Q1 2025 to US$1,110.5 million in Q2 2025 then US$934 million in Q3 2025, while net income flipped from a profit of US$20.3 million in Q2 2025 to a loss of US$14.7 million in Q3 2025.
• The more optimistic narrative leans on operational tweaks at Topgolf and across the brands to eventually support steadier margins, and the recent pattern shows why that matters so much.
  • Shifts from small profits in Q1 and Q2 2025 to a loss in Q3 underline how exposed earnings still are to changes in venue mix, discounting and cost levels.
  • Supporters who expect cost programs and asset sales to help margins will be watching whether these swings narrow over coming quarters, given the company has already produced both profits and losses within the same fiscal year.

For investors who want to see how these moving pieces fit into the more optimistic long term story for Topgolf Callaway Brands, it is worth reading the full bull case and how it treats these swings in profitability. 🐂 Callaway Golf Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Callaway Golf on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

See the numbers differently? Take a couple of minutes to put your own interpretation on this earnings story and shape it into a clear, shareable view: Do it your way

A great starting point for your Callaway Golf research is our analysis highlighting 1 important warning sign that could impact your investment decision.

See What Else Is Out There

Callaway Golf is still wrestling with heavy trailing losses, choppy earnings and a cautious valuation picture that does not clearly reward the current risk profile.

If those swings make you want something steadier, take a moment to scan 85 resilient stocks with low risk scores that focus on companies with more resilient earnings and less volatile fundamentals.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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