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Callaway Callaway Golf Company Second Quarter 2026 Earnings Conference Call August 4 , 2026 Callaway ODYSSEY # 1 PUTTER ON TOUR : ៣ TRAVIS MATHEW COGIO
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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, revenues, the Non-GAAP Projections, gross margins, tax rates, dividend income and capital expenditures), future stock repurchases, reinvestments in the business, capital allocation priorities, new product lines and their benefits, timing of product launches, strength and demand of the Company’s products and services, addressable markets and the consumer base, continued brand momentum, the health of the consumer, success of marketing initiatives, the shift away from lower margin products and channels and other margin expansion initiatives, impacts of foreign exchange rates, taxes and tariffs and mitigation efforts related thereto, potential refunds of IEEPA tariffs, future cash balances and leverage, 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, 2025, 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 and acquired developed technology related to the Company’s acquisitions of TravisMathew and OGIO (the “Acquisitions”). In addition, the Company has provided information excluding certain non-recurring items which are identified in the appendix to this presentation. Non-recurring adjustments include, among other things, subtraction of costs related to a plan intended to optimize organizational efficiencies and decrease operating costs under the separate business structures that are anticipated after the separation of Topgolf (the “Transformation Plan”). The Company also (i) excludes income or losses from equity method investments from non-GAAP net income (loss) from continuing operations and Adjusted EBITDA from continuing operations, (ii) adds back certain term loan interest expense incurred at the corporate level and included in discontinued operations to continuing operations in order to show the full effect of consolidated interest expense and (iii) excludes tariff refund benefits. 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 from continuing operations and non-GAAP gross margins (together, the “Non-GAAP Projections”) provided in this presentation, reconciliation of such Non-GAAP Projections to the most directly 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 the Company's level of capital expenditures, certain non-cash depreciation, which will fluctuate based on the Company’s level of capital expenditures, non-cash amortization of intangibles related to the 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. Constant Currency Basis. The Company provided certain information regarding the Company’s financial results or projected financial results on a "constant currency basis" or as "constant currency" results. This information estimates the impact of changes in foreign currency exchange rates on the translation of the Company’s current or projected future period financial results as compared to the applicable comparable period. This impact is derived by taking the current or projected local currency results and translating them into U.S. dollars based upon the foreign currency exchange rates for the applicable comparable period. It does not include any other effect of changes in foreign currency rates on the Company’s results or business.
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3 QUARTERLY HIGHLIGHTS Q2 Net Sales increased 2%, Non-GAAP Net Income from Continuing Ops increased 90% and Adjusted EBITDA increased 36% year-over-year. Q2 Non-GAAP Gross Margin increased 460 basis points year-over-year. Repurchased $84M of common shares YTD through June, with $120M remaining on our $200M buyback program as we stay committed to returning capital to shareholders. In Q2, the Company repaid in full the $258 million of convertible notes and the $163 million outstanding under its term loan B facility. Raises full year 2026 Adjusted EBITDA outlook to $246 million - $260 million with a revised net sales outlook of $2.045 billion - $2.070 billion.
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4 SECOND QUARTER 2026 FINANCIAL RESULTS Q2 2026 RESULTS1 ($ in millions, except per share data) Q2 2026 Q2 2025 Change (%) Net Sales $ 612.2 $ 600.4 ▲ 2% Non-GAAP Net Income (Loss) From Continuing Operations $ 73.8 $ 38.9 ▲ 90% Non-GAAP Diluted Earnings (Loss) Per Share From Continuing Operations $ 0.39 $ 0.20 ▲ 95% Adjusted EBITDA $ 124.9 $ 92.0 ▲ 36% Note: Consolidated numbers represent results from continuing operations 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 SECOND QUARTER 2026 SEGMENT FINANCIAL RESULTS Q2 2026 NET SALES ($ in millions) Q2 2026 Q2 2025 Change (%) Golf Equipment $ 430.3 $ 411.8 ▲ 4% Golf Club $ 316.5 $ 312.7 ▲ 1% Golf Ball $ 113.8 $ 99.1 ▲ 15% Apparel, Gear and Other $ 181.9 $ 188.6 ▼ (4)% Apparel $ 105.2 $ 104.3 ▲ 1% Gear and Other $ 76.7 $ 84.3 ▼ (9)% Note: Consolidated numbers represent results from continuing operations.
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6 SECOND QUARTER 2026 REGIONAL RESULTS Q2 2026 NET SALES ($ in millions) Q2 2026 Q2 2025 Change (%) Constant Currency vs. 20251 United States $ 414.7 $ 401.1 ▲ 3% ▲ 3% Europe $ 64.8 $ 64.6 -- % ▼ (1)% Asia $ 90.3 $ 91.9 ▼ (2)% ▲ 6% Rest of World $ 42.4 $ 42.8 ▼ (1)% ▼ (4)% Note: Consolidated numbers represent results from continuing operations. 1. See slide 2 for further information on the use of constant currency measures.
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7Source: National Golf Foundation, Golf Datatech and information gathered from U.S. and Europe retailers THE GAME OF GOLF REMAINS STRONG IN 2026 Healthy Golf Market Fundamentals U.S. rounds played through Q2 were up ~4% U.S. estimated golf equipment sell through was up low to mid-single digits in Q2 and year-to-date Japan's market was up low-to-mid single digits in Q2 UK and European markets estimated to be up low-to-mid single digits through June
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8 RECENT BRAND HIGHLIGHTS MyGolfSpy recognized the Odyssey Ai Dual S2S #7 as the “Best Overall Zero-Torque Putter” for 2026. U.S. golf ball market share in June was up 250 bps year-over-year hitting a new record, with green grass now just over 24% share. TravisMathew's summer Always in Play campaign reinforced the brand's versatile, on and off the course positioning, driving momentum across key franchises including Wanderlust and MoveKnit. Source: National Golf Foundation, Golf Datatech, MyGolfSpy Callaway is launching the Quantum Mini Spinner, a compact top-of-the- bag solution designed to deliver more spin, control, and confidence when attacking greens from distance.
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9 CALLAWAY GOLF BALL MARKET SHARE 1. Golf Datatech 8% 9% 11% 14% 14% 16% 17% 17% 18% 20% 20% 21% 21% 22% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 (through June) Annual US Golf Ball Market Share1
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($ in millions) Current FY 2026 Guidance Prevoius FY 2026 Guidance FY 2025 Results2 Consolidated Net Sales $2,045 to $2,070 $2,015 to $2,070 $2,060 Adjusted EBITDA from Continuing Ops1 $246 to $260 $211 to $233 $222 10 2026 OUTLOOK FULL YEAR 2026 ($ in millions) Q3 2026 Guidance Q3 2025 Results2 Consolidated Net Sales $415 to $435 $463 Adjusted EBITDA from Continuing Ops1 $10 to $20 $31 Q3 2026 Full Year 2026 Guidance Assumptions ▪ Approx. $43M gross tariff impact, a $7M reduction from our previous $50M forecast. ▪ CapEx of ~$40M ▪ Non-GAAP Gross Margins projected to be up year-over-year ▪ Approx. 23% non-GAAP Tax Rate Q3 2026 Guidance Assumptions ▪ High-single digit dollar Net Sales headwind from FX ▪ Mid-single digit dollar EBITDA headwind from lapping higher prior- year dividend income Significant work underway to expand margin profile of the business, including rationalizing lower margin portions of our business and increasing the length of certain golf equipment life cycles 1 Adjusted EBITDA from Continuing Operations is a non-GAAP measure. See appendix for a reconciliation to GAAP net income from continuing operations. See slide 2 for further information on the use of non-GAAP measures.. 2 2025 results exclude Jack Wolfskin, Topgolf and Toptracer results.
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11 UPDATED FULL YEAR 2026 GUIDANCE WALK Note: $ in millions, numbers may not foot due to rounding v v $222 $21 $7 $3 $253 Prev Guidance Q2 non-Tariff Beat Tariff Benefit 2H Raise Updated Guidance 2026 Adjusted EBITDA Guidance Range of $246 - 260M Adjusted EBITDA increased $31M at the midpoint due to the Q2 exceed, tariff benefit, flow through of 2H revenue increase and slightly improved gross margins. (Midpoint) v $2,043 $15 $5 ($5) $2,058 Prev Guidance Q2 Beat 2H Raise 2H FX Headwind Updated Guidance 2026 Net Sales Guidance Range of $2,045 – 2,070M (Midpoint) v Net Sales increased $15M at the midpoint due to flow through of strong demand and continued momentum in ball business. 2H raise covers ~$5M of 2H FX headwind.
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12 NET DEBT LEVERAGE 1. Total Net Debt, Adjusted EBITDA and Total Net Debt Leverage Ratio are non-GAAP measures. See slide 2 for further information on the use of non-GAAP measures. 2. See "Adjusted EBITDA Reconciliation" slide for reconciliation to the most directly comparable GAAP measure (net income from c ontinuing operations). NET DEBT & LEVERAGE ($ in millions) June 30, 2026 June 30, 2025 Total Principal – Long term debt & ABL credit facilities $ 50.8 $ 1,491.4 Equipment financing lease liabilities 23.0 0.7 Less: Unrestricted cash (278.1) (683.5) Total Net Debt 1 $ (204.3) $ 808.6 Trailing twelve month Adjusted EBITDA 2 $ 294.1 $ 251.1 Total Net Debt Leverage Ratio 1 (0.7)x 3.2 x
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13 CAPITAL ALLOCATION STRATEGY Reinvest in the business to unlock high ROl embedded growth Maintain a healthy balance sheet by prudently managing leverage Expect to end 2026 with a net cash leverage position Return capital to shareholders through buybacks $200 million repurchase authorization ($120 million remaining)
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Appendix
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15 (in millions, except percentages) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Change 2026 2025 Change Golf Equipment $ 100.3 $ 76.2 31.6% 217.9 178.0 22.4% % of segment net sales 23.3 % 18.5 % 480 bps 23.8 % 20.8 % 300 bps Apparel, Gear and Other 33.4 29.3 14.0% 85.4 64.7 32.0% % of segment net sales 18.4 % 15.5 % 290 bps 22.3 % 17.3 % 500 bps Total Segment Operating Income (Loss) (1) $ 133.7 $ 105.5 26.7% $ 303.3 $ 242.7 25.0% % of segment net sales 21.8 % 17.6 % 420 bps 23.3 % 19.7 % 360 bps Total Segment Constant Currency Operating Income Growth (Decline) 29.1 % 23.3 % (1) Segment Operating income excludes corporate general and administrative expenses not utilized by management in determining segment profitability, certain non-recurring items, amortization of acquired intangibles, and adjustments for discontinued operations related to indirect costs that were previously allocated to a segment. SEGMENT OPERATING INCOME Supplemental Financial Information ($ in millions, except percentages) (Unaudited)
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16 QUARTER-TO-DATE NON-GAAP RECONCILIATION Supplemental Financial Information Three Months Ended June 30, ($ in millions) 2026 2025 GAAP Non-Cash Acquisition-related Amortization Non-Recurring Items(1) (Loss) From Equity Method Investments Non- GAAP GAAP Non-Cash Acquisition-related Amortization Non-Recurring Items(2) Non- GAAP Net sales $ 612.2 $ — $ — $ — $ 612.2 $ 600.4 $ — $ — $ 600.4 Cost of sales 305.5 — (9.7) — 315.2 337.0 — 0.1 336.9 Gross profit $ 306.7 $ — $ 9.7 $ — $ 297.0 $ 263.4 $ — $ (0.1) $ 263.5 Gross margin 50.1 % 48.5 % 43.9 % 43.9 % (1) Primarily includes $10.8 million of tariff refunds, partially offset by $0.6 million of charges incurred to relocate to a new UK warehouse as a result of the sale of the Jack Wolfskin business in 2025. (2) Primarily includes costs incurred to centralize warehousing and distribution operations to achieve synergies in connection with the Company’s acquisitions. Three Months Ended June 30, 2026 2025 GAAP Non-Cash Acquisition-related Amortization Non-Recurring Items(1) (Loss) From Equity Method Investments(3) Non- GAAP GAAP Non-Cash Acquisition-related Amortization Interest Expense & Non-Recurring Items(2) Non- GAAP Income (loss) from operations $ 114.8 $ (0.1) $ 7.6 $ — $ 107.3 $ 74.3 $ (0.1) $ (0.8) $ 75.2 Net income (loss) from continuing operations $ 75.8 $ — $ 4.9 $ (2.9) $ 73.8 $ 45.5 $ (0.1) $ 6.7 $ 38.9 (1) Primarily includes $10.8 million of tariff refunds, partially offset by a $2.3 million write-off of debt issuance costs associated with the full repayment of the term loan in May 2026, $0.6 million of costs incurred to relocate to a new UK warehouse as a result of the sale of the Jack Wolfskin business in 2025, and $0.4 million of restructuring charges associated with the Transformation Plan. In addition, for 2026, non-recurring items include $1.1 million of costs incurred under the Transition Services Agreement with Topgolf, which are offset by $1.1 million of cost recovery fees received from Topgolf related to these transition services. (2) Primarily includes $0.5 million of restructuring charges related to the Transformation Plan. In addition, $9.6 million of term loan interest expense incurred at the corporate level and included in discontinued operations on a GAAP basis is reflected as part of continuing operations on a non-GAAP basis in order to show the full effect of consolidated interest expense. (3) In 2026, amounts include our $1.0 million proportionate share of Topgolf’s net losses combined with $1.9 million of unfavorab le tax impacts. Three Months Ended June 30, 2026 2025 GAAP Non-Cash Acquisition-related Amortization Non-Recurring Items (Loss) From Equity Method Investments Non- GAAP GAAP Non-Cash Acquisition-related Amortization Interest Expense & Non-Recurring Items Non- GAAP Diluted earnings (loss) per share from continuing operations (1) $ 0.40 $ — $ 0.03 $ (0.02) $ 0.39 $ 0.24 $ — $ 0.03 $ 0.20 Weighted-average shares outstanding - diluted 190.1 190.1 190.1 190.1 190.1 199.8 199.8 199.8 199.8 (1) When aggregated, earnings per share amounts may not be additive due to rounding.
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17 Supplemental Financial Information Six Months Ended June 30, ($ in millions) 2026 2025 GAAP Non-Cash Acquisition- related Amortization Non- Recurring Items(1) Tax Valuation Allowance (Loss) from Equity Method Investments Non- GAAP GAAP Non-Cash Acquisition- related Amortization Non-Recurring Items(2) Non- GAAP Net sales $ 1,299.7 $ — $ — $ — $ — $ 1,299.7 $ 1,230.0 $ — $ — $ 1,230.0 Cost of sales 666.3 — (8.6) — — 674.9 683.0 — 0.4 682.6 Gross profit $ 633.4 $ — $ 8.6 $ — $ — $ 624.8 $ 547.0 $ — $ (0.4) $ 547.4 Gross margin 48.7 % 48.1 % 44.5 % 44.5 % (1) Primarily includes $10.8 million of tariff refunds, partially offset by $1.7 million of charges incurred to relocate to a new UK warehouse as a result of the sale of the Jack Wolfskin business in 2025. (2) Primarily includes restructuring and reorganization costs. Six Months Ended June 30, 2026 2025 GAAP Non-Cash Acquisition- related Amortization Non- Recurring Items(1) Tax Valuation Allowance(3) (Loss) from Equity Method Investments(4) Non- GAAP GAAP Non-Cash Acquisition- related Amortization Interest Expense & Non-Recurring Items(2) Non- GAAP Income (loss) from operations $ 253.0 $ (0.3) $ 3.8 $ — $ — $ 249.5 $ 177.4 $ (0.2) $ (2.0) $ 179.6 Net income (loss) from continuing operations $ 150.7 $ (0.2) $ 0.5 $ 0.1 $ (35.3) $ 185.6 $ 108.9 $ (0.1) $ 13.0 $ 96.0 (1) Primarily includes $10.8 million of tariff refunds and a $4.3 million gain on the Company’s investment in Five Iron, partially offset by $9.8 million of write-offs of debt issuance costs associated with the January and May 2026 repayments of the Company's term loan, $1.7 million of charges incurred to relocate to a new UK warehouse as a result of the sale of the Jack Wolfskin business in 2025, $1.5 million of costs associated with the Transformation Plan, and a $0.7 million write-off of software assets stemming from the separation from Topgolf. In addition, non-recurring items for 2026 include $2.3 million of costs incurred under the Transition Services Agreement with Topgolf, which were fully offset by $2.3 million of cost recovery fees received from Topgolf related to those transition services. (2) Primarily includes $1.5 million of costs associated with the Transformation Plan and $0.4 million of costs incurred to centralize warehousing and distribution operations to achieve synergies in connection with the Company’s acquisitions. In addition, $19.1 million of term loan interest expense incurred at the corporate level and included as part of discontinued operations on a GAAP basis is being reflected as part of continuing operations on a non-GAAP basis in order to show the full effect of consolidated interest expense. (3) During the first quarter of fiscal year 2026, we released valuation allowances on certain U.S. deferred tax assets in both co ntinuing and discontinued operations related to the disposal of the Topgolf and Jack Wolfskin businesses. (4) In 2026, amounts include our $28.7 million proportionate share of Topgolf’s net losses combined with $6.6 million of unfavora ble tax impacts. Six Months Ended June 30, 2026 2025 GAAP Non-Cash Acquisition- related Amortization Non- Recurring Items Tax Valuation Allowance (Loss) from Equity Method Investments Non- GAAP GAAP Non-Cash Acquisition- related Amortization Interest Expense & Non-Recurring Items Non- GAAP Diluted earnings (loss) per share from continuing operations (1) $ 0.78 $ — $ — $ — $ (0.18) $ 0.96 $ 0.56 $ — $ 0.07 $ 0.50 Weighted-average shares outstanding - diluted 196.3 196.3 196.3 196.3 196.3 196.3 199.0 199.0 199.0 199.0 (1) When aggregated, earnings per share amounts may not be additive due to rounding. FULL YEAR NON-GAAP RECONCILIATION
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18 ADJUSTED EBITDA RECONCILIATION Supplemental Financial Information ($ in millions) 2026 Trailing Twelve Month Adjusted EBITDA 2025 Trailing Twelve Month Adjusted EBITDA Quarter Ended Quarter Ended September 30, December 31, March 31, June 30, September 30, December 31, March 31, June 30, 2025 2025 2026 2026 Total 2024 2024 2025 2025 Total Net income (loss) from continuing operations $ (4.1) $ (66.0) $ 74.9 $ 75.8 $ 80.6 $ 31.0 $ (93.9) $ 63.4 $ 45.5 $ 46.0 Interest expense (income), net 14.8 15.6 5.8 4.6 40.8 15.1 14.7 14.9 15.3 60.0 Income tax provision (benefit) 2.7 5.8 32.7 34.8 76.0 (34.8) 62.2 27.2 13.1 67.7 Non-cash depreciation and amortization expense 10.8 10.4 10.8 9.5 41.5 11.3 11.8 11.7 11.2 46.0 Non-cash stock compensation and stock warrant expense, net 5.8 6.7 6.5 5.9 24.9 5.6 7.1 5.9 5.4 24.0 Non-cash lease amortization, net 0.3 0.1 (0.5) (0.2) (0.3) 0.4 0.4 0.6 0.6 2.0 Acquisitions & non-recurring items, before income taxes(1) 0.3 2.3 5.8 (6.5) 1.9 1.2 2.1 1.2 0.9 5.4 Loss (income) from equity method investments — — 27.7 1.0 28.7 — — — — — Adjusted EBITDA $ 30.6 $ (25.1) $ 163.7 $ 124.9 $ 294.1 $ 29.8 $ 4.4 $ 124.9 $ 92.0 $ 251.1 (1) In 2026, amounts primarily relate to the recognition of tariff refunds, remeasurement gains on our cost method investment and gains on the disposal of intellectual property, partially offset by the write-off of debt issuance costs associated with the January and May 2026 repayments on our term loan, charges incurred to relocate to a new UK warehouse as a result of the sale of the Jack Wolfskin business, the write-off of IT assets stemming from the sale of Topgolf, and restructuring charges related to the Transformation Plan. In 2025, amounts primarily include restructuring and reorganization charges related to the Transformation Plan. In 2024, amounts primarily include restructuring and reorganization charges in connection with the Transformation Plan and IT integration charges associated with the implementation of a new cloud based HRM system.