AREX Capital Management Acquires Stake in Callaway Golf Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy CALY?
Source: Fool
- New Investment Position: On February 17, 2026, AREX Capital Management established a new position in Callaway Golf Company by acquiring 453,000 shares valued at $5.29 million, representing 15.03% of its reportable 13F assets.
- Portfolio Structure Shift: This acquisition positions Callaway as the second-largest holding for AREX, following EHAB, which is valued at $22.99 million and constitutes 65.36% of its AUM, reflecting AREX's confidence in the golf sector.
- Stock Price Recovery: As of February 28, 2026, Callaway's stock price reached $14.06, marking a 115.3% increase over the past year and outperforming the S&P 500 by 99.78 percentage points, indicating optimistic market expectations for future growth.
- Strategic Restructuring Signal: Following its merger with Topgolf in 2021, the acquisition of a 60% stake in Topgolf by Leonard Green & Partners in early 2026 suggests that Callaway is focusing on core operations, potentially enhancing growth prospects, although structural changes may lead to increased volatility.
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Analyst Views on CALY
Wall Street analysts forecast CALY stock price to rise
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Current: 13.990
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Current: 13.990
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About CALY
Topgolf Callaway Brands Corp. is a tech-enabled golf and active lifestyle company. The Company is engaged in delivering golf equipment, apparel, and entertainment, with a portfolio of global brands including Topgolf, Callaway Golf, TravisMathew, Odyssey and OGIO. The Company provides golf entertainment experiences, designs and manufactures golf equipment, and sells golf and active lifestyle apparel and other accessories through its family of brand names. Its segments include Topgolf, Golf Equipment, and Active Lifestyle. The Topgolf segment includes the operations of its Company-owned and operated and franchised Topgolf venues and Toptracer ball-flight tracking technology (Toptracer). The Golf Equipment segment includes the operations of its golf clubs and golf balls business under the Callaway Golf and Odyssey brand names. The Active Lifestyle segment includes the operations of its soft goods business marketed under the Callaway Golf, TravisMathew, and OGIO brand names.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AREX Capital Management Acquires Stake in Callaway Golf Company
- New Investment Position: On February 17, 2026, AREX Capital Management established a new position in Callaway Golf Company by acquiring 453,000 shares valued at $5.29 million, representing 15.03% of its reportable 13F assets.
- Portfolio Structure Shift: This acquisition positions Callaway as the second-largest holding for AREX, following EHAB, which is valued at $22.99 million and constitutes 65.36% of its AUM, reflecting AREX's confidence in the golf sector.
- Stock Price Recovery: As of February 28, 2026, Callaway's stock price reached $14.06, marking a 115.3% increase over the past year and outperforming the S&P 500 by 99.78 percentage points, indicating optimistic market expectations for future growth.
- Strategic Restructuring Signal: Following its merger with Topgolf in 2021, the acquisition of a 60% stake in Topgolf by Leonard Green & Partners in early 2026 suggests that Callaway is focusing on core operations, potentially enhancing growth prospects, although structural changes may lead to increased volatility.
See More
Topgolf Callaway Reports Q4 Earnings Beat Expectations
- Revenue Performance: Topgolf Callaway's Q4 non-GAAP EPS of -$0.25 missed expectations by $0.04, yet revenue of $367.5 million, down 3.9% year-over-year, exceeded forecasts by $19.5 million, demonstrating the company's resilience in challenging conditions.
- Sales Dynamics: The company's net sales from continuing operations of $367.5 million decreased by 1% year-over-year, primarily due to lower sales of golf equipment from fewer product launches in the second half, although a $7 million increase in the soft goods segment partially offset this decline.
- Future Outlook: The company initiated 2026 revenue and adjusted EBITDA guidance, projecting revenue between $1.98 billion and $2.05 billion and adjusted EBITDA between $170 million and $195 million, reflecting confidence in future growth.
- Q1 Expectations: For Q1 2026, net sales are estimated to be between $635 million and $665 million, with adjusted EBITDA expected to range from $110 million to $125 million, indicating a strong start to the new fiscal year despite market challenges.
See More
Callaway Golf Reports 2025 Financial Results and Strategic Initiatives
- Successful Strategic Transformation: Callaway successfully completed its 2025 strategic initiatives by selling Jack Wolfskin and a 60% stake in Topgolf, simplifying its business portfolio, generating significant cash flow, and paying down $1 billion in long-term debt, enhancing financial flexibility.
- Sales Performance Decline: The company reported net sales of $367.5 million for Q4 2025, a 1.1% year-over-year decline primarily due to decreased golf equipment sales, although soft goods sales increased by $7 million, indicating market demand volatility.
- Widening Operating Loss: The GAAP operating loss for Q4 was $54.1 million, significantly up from $24.6 million in the prior year, reflecting a 119.9% increase driven by surging annual incentive compensation expenses and tariff impacts, which adversely affected overall profitability.
- Cautious Future Outlook: For 2026, net sales are projected between $1.98 billion and $2.05 billion, with adjusted EBITDA expected to range from $170 million to $195 million, reflecting the company's cautious stance amid market challenges while maintaining growth expectations.
See More
Callaway Golf Company to Release Q4 and Full Year 2025 Financial Results
- Earnings Release Schedule: Callaway Golf Company plans to release its Q4 and full year 2025 financial results on February 12, 2025, after market close, demonstrating the company's commitment to transparency and investor communication.
- Management Conference Call: Following the earnings release, the management team will hold a conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) to review results and discuss future outlook, aiming to bolster investor confidence.
- Live Webcast and Replay: Investors can access the live webcast of the earnings release through the Investor Relations section of the company’s website, with a replay available approximately two hours after the event, ensuring broad dissemination and accessibility of information.
- Investor Conference Participation: Additionally, Callaway Golf Company announced participation in several investor conferences, further showcasing its leadership position and market strategy in the golf equipment and apparel sector.
See More
Callaway Golf Gains Attention After Rebranding
- Stock Price Recovery: Callaway Golf's current share price of $14.35 reflects a 30-day return of 22.96% and a 90-day return of 52.50%, indicating strong recent market performance, although long-term returns remain weaker, suggesting growing investor confidence in future growth.
- Intrinsic Value Assessment: Despite the current price exceeding the fair value estimate of $12.50, analysts suggest a 29% intrinsic discount, indicating that market expectations for future earnings and margins may not yet be fully realized, presenting a potential value investment opportunity.
- Cash Flow Model: In contrast to the fair value assessment, the discounted cash flow model indicates a future cash flow value of $20.21, suggesting a significant discount at the current share price, prompting investors to weigh different narratives about future cash flows in their decision-making.
- Strategic Shift: Callaway Golf's plan to sell a $1.1 billion stake in Topgolf, yielding $770 million in net proceeds, enhances balance sheet flexibility and refocuses on core golf equipment, potentially supporting future growth prospects.
See More
B. Riley Securities Upgrades Callaway Golf (CALY) to Buy, Raises Price Target to $19
- Rating Upgrade: B. Riley Securities upgraded Callaway Golf from Neutral to Buy, raising the price target from $11 to $19, reflecting confidence in the robust recovery of the golf industry.
- Market Share Potential: Analyst Anna Glaessgen highlighted that Callaway is positioned to stabilize and expand its market share in golf clubs, especially following the PGA Show which bolstered confidence in its products.
- Spin-off Impact Diminished: With the separation from Topgolf effectively behind, Callaway's outlook has become more optimistic, even as it retains a ~40% stake, which analysts believe will enhance overall company performance.
- Stock Price Reaction: Callaway Golf's shares rose 2.4% in premarket trading on Thursday to $15.85, indicating positive market expectations for its future performance.
See More
AREX Capital Management Acquires Stake in Callaway Golf Company
- New Investment Position: On February 17, 2026, AREX Capital Management established a new position in Callaway Golf Company by acquiring 453,000 shares valued at $5.29 million, representing 15.03% of its reportable 13F assets.
- Portfolio Structure Shift: This acquisition positions Callaway as the second-largest holding for AREX, following EHAB, which is valued at $22.99 million and constitutes 65.36% of its AUM, reflecting AREX's confidence in the golf sector.
- Stock Price Recovery: As of February 28, 2026, Callaway's stock price reached $14.06, marking a 115.3% increase over the past year and outperforming the S&P 500 by 99.78 percentage points, indicating optimistic market expectations for future growth.
- Strategic Restructuring Signal: Following its merger with Topgolf in 2021, the acquisition of a 60% stake in Topgolf by Leonard Green & Partners in early 2026 suggests that Callaway is focusing on core operations, potentially enhancing growth prospects, although structural changes may lead to increased volatility.
See More
Topgolf Callaway Reports Q4 Earnings Beat Expectations
- Revenue Performance: Topgolf Callaway's Q4 non-GAAP EPS of -$0.25 missed expectations by $0.04, yet revenue of $367.5 million, down 3.9% year-over-year, exceeded forecasts by $19.5 million, demonstrating the company's resilience in challenging conditions.
- Sales Dynamics: The company's net sales from continuing operations of $367.5 million decreased by 1% year-over-year, primarily due to lower sales of golf equipment from fewer product launches in the second half, although a $7 million increase in the soft goods segment partially offset this decline.
- Future Outlook: The company initiated 2026 revenue and adjusted EBITDA guidance, projecting revenue between $1.98 billion and $2.05 billion and adjusted EBITDA between $170 million and $195 million, reflecting confidence in future growth.
- Q1 Expectations: For Q1 2026, net sales are estimated to be between $635 million and $665 million, with adjusted EBITDA expected to range from $110 million to $125 million, indicating a strong start to the new fiscal year despite market challenges.
See More
Callaway Golf Reports 2025 Financial Results and Strategic Initiatives
- Successful Strategic Transformation: Callaway successfully completed its 2025 strategic initiatives by selling Jack Wolfskin and a 60% stake in Topgolf, simplifying its business portfolio, generating significant cash flow, and paying down $1 billion in long-term debt, enhancing financial flexibility.
- Sales Performance Decline: The company reported net sales of $367.5 million for Q4 2025, a 1.1% year-over-year decline primarily due to decreased golf equipment sales, although soft goods sales increased by $7 million, indicating market demand volatility.
- Widening Operating Loss: The GAAP operating loss for Q4 was $54.1 million, significantly up from $24.6 million in the prior year, reflecting a 119.9% increase driven by surging annual incentive compensation expenses and tariff impacts, which adversely affected overall profitability.
- Cautious Future Outlook: For 2026, net sales are projected between $1.98 billion and $2.05 billion, with adjusted EBITDA expected to range from $170 million to $195 million, reflecting the company's cautious stance amid market challenges while maintaining growth expectations.
See More
Callaway Golf Company to Release Q4 and Full Year 2025 Financial Results
- Earnings Release Schedule: Callaway Golf Company plans to release its Q4 and full year 2025 financial results on February 12, 2025, after market close, demonstrating the company's commitment to transparency and investor communication.
- Management Conference Call: Following the earnings release, the management team will hold a conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) to review results and discuss future outlook, aiming to bolster investor confidence.
- Live Webcast and Replay: Investors can access the live webcast of the earnings release through the Investor Relations section of the company’s website, with a replay available approximately two hours after the event, ensuring broad dissemination and accessibility of information.
- Investor Conference Participation: Additionally, Callaway Golf Company announced participation in several investor conferences, further showcasing its leadership position and market strategy in the golf equipment and apparel sector.
See More
Callaway Golf Gains Attention After Rebranding
- Stock Price Recovery: Callaway Golf's current share price of $14.35 reflects a 30-day return of 22.96% and a 90-day return of 52.50%, indicating strong recent market performance, although long-term returns remain weaker, suggesting growing investor confidence in future growth.
- Intrinsic Value Assessment: Despite the current price exceeding the fair value estimate of $12.50, analysts suggest a 29% intrinsic discount, indicating that market expectations for future earnings and margins may not yet be fully realized, presenting a potential value investment opportunity.
- Cash Flow Model: In contrast to the fair value assessment, the discounted cash flow model indicates a future cash flow value of $20.21, suggesting a significant discount at the current share price, prompting investors to weigh different narratives about future cash flows in their decision-making.
- Strategic Shift: Callaway Golf's plan to sell a $1.1 billion stake in Topgolf, yielding $770 million in net proceeds, enhances balance sheet flexibility and refocuses on core golf equipment, potentially supporting future growth prospects.
See More
B. Riley Securities Upgrades Callaway Golf (CALY) to Buy, Raises Price Target to $19
- Rating Upgrade: B. Riley Securities upgraded Callaway Golf from Neutral to Buy, raising the price target from $11 to $19, reflecting confidence in the robust recovery of the golf industry.
- Market Share Potential: Analyst Anna Glaessgen highlighted that Callaway is positioned to stabilize and expand its market share in golf clubs, especially following the PGA Show which bolstered confidence in its products.
- Spin-off Impact Diminished: With the separation from Topgolf effectively behind, Callaway's outlook has become more optimistic, even as it retains a ~40% stake, which analysts believe will enhance overall company performance.
- Stock Price Reaction: Callaway Golf's shares rose 2.4% in premarket trading on Thursday to $15.85, indicating positive market expectations for its future performance.
See More
