Slides
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Third Quarter 2025 Earnings Conference Call November 6, 2025
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2 IMPORTANT NOTICES Forward-looking Statements. During the presentation, any comments made about future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company’s financial outlook (including, among others, Company, Topgolf and core business revenues, same venue sales, the Non-GAAP Projections (as defined below), and capital expenditures), our plans to pursue a separation of the Topgolf business, the timing and method of the separation, the anticipated benefits, expenses, dis-synergies and other effects of the separation, the expected financial and operational performance of, and future opportunities for, each of the two independent companies following the separation, the tax treatment of the separation, hiring of a new Topgolf CEO and the timing thereof, cost reduction activities, new product lines, strength and demand of the Company’s products and services, addressable markets and the consumer base, continued brand momentum, success of marketing initiatives, digital growth, installation of new point of sale technology, the sensitivity of the business to recession, Topgolf venue openings, impacts of foreign exchange rates, taxes and tariffs, impacts of weather events and fires and statements of belief and any statement of assumptions underlying any of the foregoing, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often characterized by the use of words such as “estimate,” “expect,” “anticipate,” “project,” “plan,” “intend,” “seek,” “believe,” “forecast,” “foresee,” “likely,” “may,” “should,” “would,” “goal,” “target,” “might,” “will,” “could,” “predict,” “continue” and the negative or plural of these words and other comparable terminology. Such statements reflect the Company’s best judgment as of the time made based on then current market trends and conditions. Actual results could differ materially from those as a result of certain risks, unknowns and uncertainties applicable to the Company and its business. For additional details concerning these and other risks and uncertainties that could affect these statements and the Company’s business, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, as well as other risks and uncertainties detailed from time to time in the Company’s reports on Forms 10-Q and 8-K subsequently filed with the SEC from time to time. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Regulation G. In addition, in order to assist you with period-over-period comparisons on a consistent and comparable basis, today’s presentation includes certain non-GAAP information, which may include non- GAAP financial measures within the meaning of Regulation G. The Company provided information excluding non-cash amortization of acquired intangible assets, including customer and distributor relationships, reacquired distribution rights and acquired developed technology related to the Company’s merger with Topgolf, acquisitions of Jack Wolfskin, TravisMathew and OGIO, and reacquisition of distribution rights in the Korea apparel market. In addition, the Company has provided information excluding certain non-recurring items which are identified in the appendix to this presentation. These non-GAAP measures should not be considered as a substitute for any measure derived in accordance with GAAP. The non-GAAP information may also be inconsistent with the manner in which similar measures are derived or used by other companies. Management uses such non- GAAP information for financial and operational decision-making purposes and as a means to evaluate period-over-period comparisons and in forecasting the Company’s business going forward. Management believes that the presentation of such non-GAAP information, when considered in conjunction with the most directly comparable GAAP information, provides additional useful comparative information for investors in their assessment of the underlying performance of the Company’s business with regard to these items. The Company has provided reconciliations of such non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP. The reconciliations are included in the appendix to this presentation. For forward-looking Adjusted EBITDA for the consolidated Company, Topgolf and the core business, non-GAAP depreciation and amortization, Adjusted Free Cash Flow, non-GAAP interest expense, and non-GAAP pre-tax income (collectively, the “Non-GAAP Projections”) provided in this presentation, reconciliation of such Non-GAAP Projections to the most closely comparable GAAP financial measure is not provided because the Company is unable to provide such reconciliation without unreasonable efforts. The inability to provide a reconciliation is because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the applicable GAAP financial measure in the future but would not impact the Non-GAAP Projections. These items may include certain non-cash depreciation, which will fluctuate based on the Company’s level of capital expenditures, timing of reimbursement of lease financing, non-cash amortization of intangibles related to the Company’s acquisitions, income taxes, which can fluctuate based on changes in the other items noted and/or future forecasts, and other non-recurring costs and non-cash adjustments. Historically, the Company has excluded these items from the Non-GAAP Projections. The Company currently expects to continue to exclude these items in future disclosures of such measures and may also exclude other items that may arise. The events that typically lead to the recognition of such adjustments are inherently unpredictable as to if or when they may occur, and therefore actual results may differ materially. This unavailable information could have a significant impact on the applicable GAAP measure.
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3 Q3 2025 Highlights Q3 Revenue from the ongoing business (excluding Jack Wolfskin) grew 3% year-over-year. Company liquidity remains strong, increasing $391 million year-over- year to $1,254 million. Q3 Net Revenue and Adjusted EBITDA both exceeded guidance. Raising Total Company and Topgolf full year 2025 revenue and Adjusted EBITDA Guidance. Q3 Topgolf same venue sales inflected to positive growth.
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4 Q3 2025 FINANCIAL RESULTS Q3 NON-GAAP RESULTS1 ($ in millions, except per share data) Q3 2025 Q3 2024 Change (%) Change (%) Excl. Jack Wolfskin Net Revenues $ 934.0 $ 1,012.9 (8)% +3% Net (Loss) Income $ (9.2) $ 4.3 n/m n/m Diluted (Loss) Earnings Per Share $ (0.05) $ 0.02 n/m n/m Adjusted EBITDA $ 114.4 $ 119.8 (5)% (4) % Note: Numbers may not foot due to rounding. 1. See Appendix for calculation methodologies of non-GAAP measures and reconciliations to GAAP. See slide 2 for further information on the use of non -GAAP measures.
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5 SEGMENT HIGHLIGHTS GOLF EQUIPMENT ACTIVE LIFESTYLE U.S. golf consumer remains strong and engaged U.S. rounds played in 2023 +4% year-over-year PIE now in all venues except Las Vegas Chrome Tour Triple Diamond golf ball named longest ball in MyGolfSpy’s independent testing1 Elyte Triple Diamond driver ranked #1 in Golf Digest’s test of “spin consistency”2 Xander Schauffele captured 10th career PGA TOUR title at Baycurrent Classic in Japan Same venue sales inflected to positive growth in Q3 driven by traffic TOPGOLF TravisMathew women’s category continued to show strong growth in Q3 Strong Q3 EBITDAR margins, despite increased value offerings 1. Source: MyGolfSpy 2. Source: Golf Digest 3. Source: Earnest Credit Card Data Expect new Toast point-of-sale system to be in over half of US venues by year end Callaway apparel drove market share gains in Japan TravisMathew has outperformed the active and athleisure market3
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6 RECENT BRAND HIGHLIGHTS Sunday Funday and Half-Off Mon- Thurs Continue To Drive Strong Walk- in Traffic Launched Odyssey Square to Square TRI-HOT Putter Momentum In TravisMathew Outerwear
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7 SAME VENUE SALES: Q3 INFLECTED TO POSITIVE GROWTH Note: Numbers may not foot due to rounding. 1. Total same venue sales (SVS) represents sales for the comparable venue base, which is defined as the number of Company -operated venues with at least 24 full fiscal months of operations. Stacked same venue sales represent the summation of the same venue sales growth for 2025 vs. 2024 and 2024 vs. 2023. 2. 1-2 bay represents US same venue sales primarily to non -corporate or “consumer” customers 3. 3+ bay represents US same venue sales primarily to corporate customers 4. Same venue visits (SVV) represents the number of visits for the comparable venue base, which is defined as the number of Comp any-operated venues with at least 24 full fiscal months of operations. Q1 Q2 Q3 Q4 FY Total1 ’25 vs ’24 -12% -6% +1% ’24 vs ’23 -7% -8% -11% -8% -9% Total Stacked -19% -14% -10% 1-2 Bay2 ’25 vs ’24 -12% -5% +2% ’24 vs ’23 -5% -8% -9% -10% -8% Total Stacked -17% -13% -7% 3+ Bay3 ’25 vs ’24 -13% -12% -4% ’24 vs ’23 -16% -9% -19% -5% -11% Total Stacked -29% -22% -23% Q1 Q2 Q3 Total ’25 vs ’24 -8% +6% +17% Same Venue Visits4
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8 Driver Topgolf Ranking Fun Atmosphere Food & Drink Value Price #1 #1 #1 #14 #18 External research shows Topgolf continues to win in Fun, Food & Drink and Atmosphere and is improving in Price and Value perception TOPGOLF CONTINUES TO LEAD IN FUN WHILE IMPROVING VALUE PERCEPTION 1. HundredX data representing a set of 21 peers for trailing six months ending September 2025. HundredX, Inc. (“HundredX”) data is sourced from customer feedback across ~4,000 brands including Topgolf and relevant peer businesses. None of HundredX, the Company, nor the Company’s advisors make any representations as to the accuracy or completeness of the data. Change vs. June N/C N/C N/C +2 +1
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9 $3,860 $40 $20 $3,920 Prior 2025 Guidance Midpoint Topgolf Core Updated 2025 Guidance Midpoint Raising 2025 revenue guidance range to $3,900 - $3,940M from $3,800 - $3,920M • Topgolf revenue increased $40M due to improved SVS outlook • Core revenue increased $20M primarily driven by improved performance in Golf Equipment $460 $20 $20 $500 Prior 2025 Guidance Midpoint Topgolf Core Updated 2025 Guidance Midpoint • Topgolf EBITDA increased $20M due to revenue flow-thru. • Core EBITDA increased $20M due to revenue flow-thru and continued cost management Raising 2025 adjusted EBITDA guidance range to $490 - $510M from $430 - $490M RAISING TOTAL COMPANY 2025 REVENUE AND ADJUSTED EBITDA WALK
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• Topgolf: • ~$20M from the move to a retail calendar and sale of WGT • Partly offset by revenue from new venues • Core (excl. Jack Wolfskin): • Equipment launch timing and normal ball retail inventory management ahead of new Chrome launch in 2026 • Partly offset by improved market conditions $924 ($115) ($10) ($16) $783 Q4 2024 Actual Jack Wolfskin Topgolf Core Q4 2025 Guidance Q4 Total Adj EBITDA Guidance Range: $13 - $33 $101 ($18) ($22) ($39) $23 Q4 2024 Actual Jack Wolfskin Topgolf Core Q4 2025 Guidance • Topgolf: • ~$12M from: incremental stand-alone costs, impact of lower 3+ bay revenue and year- over-year variances in items such as property tax and insurance • ~$10M from calendar change and sale of WGT • Core (excl. Jack Wolfskin): • ~$17M from incremental tariffs • ~$17M from annual incentive compensation • ~$6M from lower revenue Q4 Total Revenue Guidance Range: $763- $803 10 Q4 2025 TOTAL COMPANY REVENUE AND ADJUSTED EBITDA WALK
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11 2025 TOTAL COMPANY OUTLOOK Current FY 2025 Guidance Prior FY 2025 Guidance FY 2024 Results Consolidated Net Revenue $3.90 - $3.940B $3.80 - $3.92B $4.24B Topgolf Revenue $1.77 - $1.79B $1.71 - $1.77B $1.81B Topgolf Same Venue Sales Down Mid-Single Digits -6 to -9% -9% Consolidated Adjusted EBITDA $490 - $510 $430 - $490 $588 Topgolf Adjusted EBITDA $295 - $305 $265 - $295 $337 FULL YEAR 20251 Q4 20251 Q4 2025 Guidance Q4 2024 Results (Excl. Jack Wolfskin) Q4 2024 Results Net Revenue $763 - $803 $810 $924 Adjusted EBITDA $13 - $33 $83 $101 Topgolf Same Venue Sales Approximately Flat -8% -8% Full Year Guidance Assumptions1 ◦ Includes ~$40M EBITDA impact from incremental tariffs for 2025. No change from prior guidance ◦ Capex: Topgolf net capex ~$120M (prior $110 - $120M), Core capex ~$40M (prior ~$50M) ◦ Positive Adjusted Free Cash Flow at Topgolf and Total Company ◦ No material impact from FX ($ in millions) ($ in millions) 1. See appendix for calculation methodologies of adjusted EBITDA, net capital expenditures and adjusted free cash flow and reconciliations to GAAP. See slide 2 for further information on the use of non-GAAP measures.
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12 FULL YEAR 2025 KEY METRICS & RAISED OUTLOOK ($ in millions, except for EPS)1 Topgolf (at midpoint) Non-Topgolf 3 (at midpoint) Total (at midpoint) Adjusted EBITDA $300 $200 $500 Non-GAAP Depreciation & Amortization $258 Non-GAAP Topgolf D&A $207 $207 Non-GAAP Non-Topgolf D&A $52 $52 Non-GAAP Interest Expense2 $237 Non-GAAP Venue Financing Interest (Venue Financing Cash Interest $115) $138 $138 Non-GAAP Corporate Interest $99 $99 Share Based Compensation & Non-Cash Rent $13 $23 $37 Non-GAAP Pre-Tax Income $(58) $26 $(32) Note: Numbers may not foot due to rounding. 1. See appendix for calculation methodologies of adjusted EBITDA and non-GAAP depreciation and amortization and reconciliations to GAAP. See slide 2 for further information on the use of non-GAAP measures. 2. Includes non-cash interest and fees. 3. Non-Topgolf includes Active Lifestyle, Golf Equipment and Corporate Previous 2025 Outlook (at midpoint) $460 $260 $207 $53 $238 $140 $98 $40 $(78)
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13 Q3 2025 KEY METRICS ($ in millions)1 Topgolf Non-Topgolf Total Non-GAAP Operating Income $31 $4 $35 Non-GAAP Depreciation and Amortization $52 $12 $64 Non-Cash Lease Amortization Expense2 $3 $0 $3 Non-Cash Stock Comp Expense -$2 $6 $4 Other Income $0 $9 $9 Adjusted Segment EBITDA $84 $31 $114 Less: Venue Financing Cash Interest3 $30 $0 $30 Adj EBITDA less Venue Financing Cash Interest $53 $31 $84 Interest Expense $35 $25 $59 Note: Numbers may not foot due to rounding. 1. See appendix for calculation methodologies of non-GAAP D&A, non-cash lease amortization expense, adjusted EBITDA, venue financing cash interest and adjusted EBITDA less VFCI and reconciliations to GAAP. See slide 2 for further information on the use of non- GAAP measures. 2. This is essentially non-cash rent. 3. Assume ~$2.5-$3.0M per venue per year in 2024 -2025 and $2.75-$3.25M after 2026.
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14 IMPROVING BALANCE SHEET AND LIQUIDITY METRICS Metric1 ($ in millions) As of September 30, 2025 As of September 30, 2024 Cash and Cash Equivalents $866 $442 Inventory $569 $666 Available Liquidity $1,254 $863 Net Debt $2,226 $2,539 REIT Adjusted Net Debt $665 $1,100 Net Debt Leverage Ratio 3.8x 4.6x REIT Adj. Net Debt Leverage Ratio 1.4x 2.4x Metric1 ($ in millions) Nine months ended September 30, 2025 Nine months ended September 30, 2024 Gross Capital Expenditures2 $211 $227 Net Capital Expenditures3 $135 $139 Non-GAAP Depreciation & Amortization $196 $191 1. See appendix for calculation methodologies of available liquidity, net debt, REIT adjusted net debt, net debt leverage ratio, REIT adjusted net debt leverage ratio, net capital expenditures and non-GAAP depreciation and amortization and reconciliations to GAAP. See slide 2 for further information on the use of non-GAAP measures. 2. Does not include financed additions of capital expenditures. During the course of the construction of venues, certain financing partners remit funds directly to our construction vendors on our behalf rather than providing the construction advances to us . These funds are presented as non-cash investing and financing activities within our cash flow statement. 3. For the nine months ended September 30, 2025, Net Capital Expenditures includes $210.6 million of Gross Capital Expenditures net of $75.9 million of proceeds from lease financing. For the nine months ended September 30, 2024, Net Capital Expenditures inc ludes $227.1 million of Gross Capital Expenditures net of $87.6 million of proceeds from lease financing and $1.0 million of procee ds from government grants.
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APPENDIX
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16 NET DEBT LEVERAGE, ADJUSTED FOR REIT FINANCING ($ in millions) 1. See appendix for the calculation methodologies of net debt, net debt leverage ratio, REIT adjusted net debt, REIT adjusted net debt levera ge ratio and venue financing cash interest and reconciliations to GAAP. See slide 2 for further information on the use of non- GAAP measures. 2. See "Adjusted EBITDA Reconciliation" slide for reconciliation to the most directly comparable GAAP measure (net income). September 30, 2025 September 30, 2024 Total Principal – Long term debt & ABL credit facilities $1,529.4 $1,541.3 Deemed landlord financing obligations $1,255.3 $1,148.3 Topgolf venue financing liabilities $306.6 $291.2 Equipment financing lease liabilities $0.7 $0.2 Less: Unrestricted cash $(865.6) $(441.9) Total Net Debt(1) $2,226.4 $2,539.1 Trailing twelve month Adjusted EBITDA (2) $578.9 $556.1 Total Net Debt Leverage Ratio (1) 3.8 x 4.6 x Less: DLF obligations & Venue lease liabilities $(1,561.9) $(1,439.5) REIT Adjusted Net Debt (1) $664.5 $1,099.6 Venue Financing ("VF") Cash Interest (1) $(108.7) $(95.2) Trailing 12-Month Adj. EBITDA less VF Cash Interest (1) $470.2 $460.9 REIT Adjusted Net Debt Leverage Ratio (1) 1.4 x 2.4 x
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17 2024 TOPGOLF US VENUE EBITDAR TO TOTAL ADJ. EBITDA WALK ($118) ($98) $351 ($49) $302 $31 ($95) $239 $337 $568 1. US Venue 4-wall EBITDAR margin is calculated using US Venue revenue. Topgolf Adjusted EBITDA margin is calculated using Topgolf Revenue. See slide 2 for further information on the use of non-GAAP measures. Topgolf Venue EBITDA – VFCI margin is calculated using Topgolf Revenue. 2. Includes Partnerships, UK Venues, Big Shots, Franchise, Toptracer, Swing Suite, and Media. Notes: • Corporate overhead: includes Executive Team, Finance/Accounting, Supply Chain, Tech, Legal & HR. • Venue overhead: Construction team, National Directors of Operations, call center, venue training, marketing & event sales teams. • Other businesses: Toptracer, Media, Swing Suite, Franchise, Partnerships and UK venues. US Venue Revenue US Venue 4- wall EBITDAR Cash Rent Cash Pre- Opening / Venue Overhead Other Business2 Topgolf Adj. EBITDA Venue Financing Cash Interest (“VFCI”) Topgolf Adj. EBITDA – VFCI Topgolf Revenue US Venue Adj. EBITDA US Venue 4- wall Adj EBITDA - VFCI Corporate Overhead 34%1 19%113%121% $1,809 $1,666
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18 Remove Prev Guidance 1. Topgolf Callaway Brands completed the sale of Jack Wolfskin on May 31, 2025. See appendix for calculation methodology of Adjusted EBITDA and a reconciliation to GAAP. See slide 2 for further information on the use of non-GAAP measures. 2024 2025 Full Year Revenue1 $355 $96 Full Year Adj. EBITDA1 $(8) $(13) JACK WOLFSKIN CONTRIBUTION TO FINANCIAL RESULTS ($ in millions)
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19 DEFINITIONS OF CERTAIN FINANCIAL MEASURES Adjusted EBITDA Less Venue Financing Cash Interest - a non-GAAP measure calculated as Adjusted EBITDA less Venue Financing Cash Interest obligations. Adjusted EBITDA Margin - a non-GAAP measure calculated as Adjusted EBITDA divided by revenue. Available Liquidity - comprised of cash on hand, plus availability under revolving credit facilities. Core Business - references to our Core business are referring to our businesses other than Topgolf. Gross Debt - calculated as debt, including all Venue Financing Liabilities related to the Topgolf venues. Net Capital Expenditures - capital expenditures net of proceeds from lease financing and proceeds from government grants. Net Debt - a non-GAAP measure calculated as total debt, venue financing liabilities, DLF obligations and equipment financing lease obligations, less the Company's unrestricted cash. Net Debt Leverage Ratio - a non-GAAP measure calculated as Net Debt divided by trailing 12-month Adjusted EBITDA. Non-Cash Lease Amortization expense - excludes purchase price amortization related to the Topgolf merger. Non-GAAP Depreciation & Amortization - excludes pre-tax amortization of acquired intangible assets. REIT Adjusted Net Debt - a non-GAAP measure calculated as Net Debt less Venue Financing Lease Liabilities. REIT Adjusted Net Leverage Ratio - a non-GAAP measure calculated as REIT Adjusted Net Debt divided by Adjusted EBITDA less Venue Financing Cash Interest. Venue Financing Cash Interest (VFCI) - primarily represents cash paid for interest on Venue Financing Lease Liabilities. Venue Financing Interest - interest expense on Venue Financing Lease Liabilities. Venue Financing Lease Liability - the sum of venue finance lease liability and deemed landlord financing obligations.
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20 SEGMENT OPERATING INCOME Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Note: Numbers may not foot due to rounding Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 Change 2025 2024 Change Topgolf $ 31.1 $ 28.3 9.9 % $74.6 $87.3 (14.5) % % of segment revenue 6.6 % 6.2 % 40 bps 5.5 % 6.4 % (90) bps Golf Equipment 23.2 26.8 (13.4) % $201.1 $186.3 7.9 % % of segment revenue 7.6 % 9.1 % (150) bps 17.3 % 16.1 % 120 bps Active Lifestyle 13.7 19.4 (29.4) % $64.8 $58.8 10.2 % % of segment revenue 8.8 % 7.3 % 150 bps 10.4 % 7.5 % 290 bps Total Segment Operating Income $ 68.0 $ 74.5 (8.7) % $340.5 $332.4 2.4 % % of segment revenue 7.3 % 7.4 % (10) bps 10.9 % 10.0 % 90 bps Constant Currency Total Segment Operating Income (1) (9.6) % 2.7 % (1) Segment Operating income excludes corporate general and administrative expenses not utilized by management in determining segment profitability as well as the amortization of acquired intangibles.
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21 NON-GAAP RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Note: Numbers may not foot due to rounding Three Months Ended September 30, 2025 2024 GAAP Non-Cash Acquisition related Amortization Non-Recurring Items(1) Non- GAAP GAAP Non-Cash Acquisition related Amortization Non-Recurring Items(2) Non- GAAP Income from operations $ 28.3 $ (1.8) $ (5.2) $ 35.3 $ 33.7 $ (2.9) $ (6.4) $ 43.0 Net (loss) income $ (14.7) $ (1.4) $ (4.1) $ (9.2) $ (3.6) $ (2.9) $ (5.0) $ 4.3 (Loss) earnings per share - diluted (3) $ (0.08) $ (0.01) $ (0.02) $ (0.05) $ (0.02) $ (0.02) $ (0.03) $ 0.02 (1) Primarily includes $2.6 million in legal, accounting and other costs related to the planned separation of Topgolf, $1.3 million of restructuring charges related to the Transformation Plan, and an additional $1.2 million loss on disposal related to working capital adjustments for the closing of the sale of Jack Wolfskin. (2) Primarily includes $2.8 million of restructuring and reorganization charges in our Active Lifestyle segment, $2.6 million of costs incurred related to the separation of Topgolf, and $0.3 million of IT integration charges including costs associated with the implementation of a new cloud based HRM system. (3) When aggregated, earnings per share amounts may not add across due to rounding.
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22 NON-GAAP RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Note: Numbers may not foot due to rounding Nine Months Ended September 30, 2025 2024 GAAP Non-Cash Acquisition related amortization Non-Recurring Items(1) Non- GAAP GAAP Non-Cash Acquisition related amortization Non-Recurring Items(2) Non- GAAP Income from operations $ 200.6 $ (6.1) $ (37.6) $ 244.3 $ 203.6 $ (8.7) $ (25.1) $ 237.4 Net income $ 7.7 $ (4.9) $ (44.1) $ 56.7 $ 65.0 $ (7.3) $ (29.5) $ 101.8 Earnings per share - diluted (3) $ 0.04 $ (0.03) $ (0.24) $ 0.31 $ 0.35 $ (0.04) $ (0.15) $ 0.54 (1) Primarily includes the loss on sale and held for sale impairment charges of $28.0 million related to the sale of the Jack Wolfskin business, $13.0 million of restructuring charges related to the Transformation Plan, and $9.6 million in legal, accounting and other costs related to the planned separation of Topgolf. (2) Primarily includes $14.6 million of restructuring and reorganization charges in our Active Lifestyle segment, $4.7 million in charges related to our 2024 debt repricing, $3.4 million in currency translation adjustments reclassified into earnings due to the dissolution of the Jack Wolfskin Russia entity, $3.4 million of additional charges related to the impairment and abandonment of the Shankstars media game in the Topgolf segment, $2.6 million of costs incurred related to the separation of Topgolf, $2.1 million of IT integration charges including costs associated with the implementati on of a new cloud based HRM system, and $1.4 million of IT costs related to a 2023 cybersecurity incident. (3) When aggregated, earnings per share amounts may not add across due to rounding.
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23 ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Note: Numbers may not foot due to rounding 2025 Trailing Twelve Month Adjusted EBITDA 2024 Trailing Twelve Month Adjusted EBITDA Quarter Ended Quarter Ended December 31, March 31, June 30, September 30, December 31, March 31, June 30, September 30, 2024 2025 2025 2025 Total 2023 2024 2024 2024 Total Net (loss) income $ (1,512.7) $ 2.1 $ 20.3 $ (14.7) $ (1,505.0) $ (77.1) $ 6.5 $ 62.1 $ (3.6) $ (12.1) Interest expense, net 57.7 58.0 58.7 59.2 233.6 56.6 58.8 57.0 57.7 230.1 Income tax (benefit) provision (1.4) 9.5 13.8 (7.6) 14.3 (7.2) 5.0 (9.7) (19.4) (31.3) Non-cash depreciation and amortization expense 69.1 69.1 67.8 65.5 271.5 64.0 65.4 65.8 68.1 263.3 Non-cash stock compensation and stock warrant expense, net 9.0 7.0 7.0 3.9 26.9 8.4 14.2 7.0 7.8 37.4 Non-cash lease amortization expense 3.2 2.9 3.1 2.8 12.0 4.4 3.5 3.6 2.8 14.3 Non-cash goodwill & trade name impairment 1,452.0 — — — 1,452.0 — — — — — Non-recurring items(1) 24.5 18.7 25.1 5.3 73.6 20.7 7.5 19.8 6.4 54.4 Adjusted EBITDA $ 101.4 $ 167.3 $ 195.8 $ 114.4 $ 578.9 $ 69.8 $ 160.9 $ 205.6 $ 119.8 $ 556.1 (1) In 2025, amounts include net losses and other costs related to the sale of the Jack Wolfskin business, costs incurred related to the planned separation of Topgolf, and restructuring and reorganization charges related to the Transformation Plan. In 2024, amounts include restructuring and reorganization charges in our Active Lifestyle segment, costs incurred related to the planned separation of Topgolf, charges related to the 2024 debt repricing, currency translation adjustments reclassified into earnings due to the dissolution of the Jack Wolfskin Russia entity, charges related to the impairment and abandonment of the Shankstars media game, a loss on disposal on the sale on the WGT business, IT integration costs associated with the implementation of a new cloud based HRM system, and IT costs related to a 2023 cybersecurity incident. In 2023, amounts include charges related to the abandonment of the Shankstars media game, restructuring and reorganization charges in our Topgolf and Active Lifestyle segments, IT integration and implementation costs stemming primarily from the merger with Topgolf, and costs related to a cybersecurity incident.
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24 TOPGOLF ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Note: Numbers may not foot due to rounding Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended December 31, 2025 2024 2025 2024 2024 Topgolf Segment operating income(1): $ 31.1 $ 28.3 $ 74.6 $ 87.3 $ 114.2 Non-GAAP depreciation and amortization expense 51.6 50.8 154.5 148.4 199.9 Non-cash stock compensation expense (1.9) 2.0 0.9 8.4 10.3 Non-cash lease amortization expense 2.7 2.8 8.2 9.1 12.4 Other expense, net — 0.5 — 0.5 0.4 Adjusted Segment EBITDA $ 83.5 $ 84.4 $ 238.2 $ 253.7 $ 337.2 (1) We do not calculate GAAP net income at the operating segment level, but have provided Topgolf’s segment income from operations as a relevant measurement of profitability. Segment income from operations does not include interest expense and taxes as well as other non-cash and non-recurring items.
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25 JACK WOLFSKIN ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, Twelve Months Ended December 31, 2025 2024 2025 2024 2024 Active Lifestyle Segment operating income $ 13.7 $ 19.4 $ 64.8 $ 58.8 $ 82.4 Less: Operating income for other Active Lifestyle business lines 13.9 17.5 79.2 90.8 100.1 Jack Wolfskin operating (loss) income(1): $ (0.2) $ 1.9 $ (14.4) $ (32.0) $ (17.7) Depreciation and amortization expense — 2.0 2.1 5.7 7.7 Non-cash stock compensation expense — 0.1 (0.1) 0.1 0.2 Non-cash lease amortization expense — (0.3) (0.1) (0.4) (0.4) Other (expense) income, net — (2.9) (0.4) 0.3 1.9 Jack Wolfskin Adjusted EBITDA $ (0.2) $ 0.8 $ (12.9) $ (26.3) $ (8.3) (1) We do not calculate GAAP net income at the operating segment level, but have provided Jack Wolfskin’s loss from operations as a relevant measurement of profitability. Segment income (loss) from operations does not include interest expense and taxes as well as other non-cash and non-recurring items.
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26 NON-GAAP RESULTS FROM ON-GOING BUSINESS Supplemental Financial Information ($ in millions, except percentages) (Unaudited) Non-GAAP Consolidated Topgolf Callaway Brands Jack Wolfskin Non-GAAP Ongoing Business Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net revenues $ 934.0 $ 1,012.9 $ 3,136.8 $ 3,314.9 $ 0.2 $ 108.2 $ 95.6 $ 240.5 $ 933.8 $ 904.7 $ 3,041.2 $ 3,074.4 Operating income (loss) $ 35.3 $ 43.0 $ 244.3 $ 237.4 $ (0.2) $ 1.9 $ (14.4) $ (32.0) $ 35.5 $ 41.1 $ 258.7 $ 269.4 Adjusted EBITDA $ 114.4 $ 119.8 $ 477.5 $ 486.3 $ (0.2) $ 0.8 $ (12.9) $ (26.3) $ 114.6 $ 119.0 $ 490.4 $ 512.6
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