Callaway Golf Fully Repays Term Loan B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
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Source: Newsfilter
- Loan Repayment Milestone: Callaway Golf Company has fully repaid approximately $163 million remaining under its Term Loan B facility, following a voluntary prepayment of $1 billion in January 2026, which simplifies the capital structure and is expected to reduce future cash interest expenses, thereby enhancing financial flexibility.
- Improved Financial Position: Post-repayment, the company has approximately $53 million in remaining gross debt, including about $44 million under its Japan ABL facility and $9 million in equipment notes and finance leases, alongside over $150 million in cash and cash equivalents, indicating strong liquidity.
- Capital Allocation Priorities: CFO Brian Lynch stated that this repayment aligns with the company's previously communicated capital allocation priorities of reinvesting in the business, maintaining a healthy balance sheet, and returning capital to shareholders, demonstrating a robust approach to future growth strategies.
- Future Outlook: The company expects to achieve a net cash to zero net leverage position by year-end, further solidifying its financial foundation and enhancing market competitiveness, creating more opportunities for future investments and shareholder returns.
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About CALY
Callaway Golf Company, formerly Topgolf Callaway Brands Corp., is a golf equipment, gear and apparel company. The Company designs, manufactures, and sells high-performance golf clubs, golf balls, apparel, bags, and other accessories. Its products are distributed through a mix of on-course, specialty retail, wholesale, direct-to-consumer and international channels. It operates through two segments: Golf Equipment, Apparel, Gear and Other. Golf Equipment segment consists of golf club and golf ball products, including Callaway Golf-branded woods, hybrids, irons, wedges, Odyssey putters, packaged sets, Callaway Golf-branded golf balls and sales of pre-owned golf clubs. Apparel, Gear and Other segments consist of TravisMathew golf and lifestyle apparel and accessories business. Its golf club products include woods, drivers, fairway woods, hybrids and irons and wedges. It offers a two-piece golf ball consisting of a core and cover or a multilayer golf ball with two or more components.
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.
Callaway Golf Fully Repays Term Loan B
- Loan Repayment Milestone: Callaway Golf Company has fully repaid approximately $163 million remaining under its Term Loan B facility, following a voluntary prepayment of $1 billion in January 2026, which simplifies the company's capital structure and is expected to reduce future cash interest expenses.
- Enhanced Financial Flexibility: Post-repayment, the company has approximately $53 million in remaining gross debt, including about $44 million under its Japan ABL facility and $9 million in equipment notes and finance leases, alongside over $150 million in unrestricted cash and cash equivalents, thereby enhancing its financial flexibility.
- Capital Allocation Priorities: CFO Brian Lynch stated that this repayment marks a significant milestone in the balance sheet actions outlined earlier this year, indicating the company's commitment to reinvesting in the business, maintaining a healthy balance sheet, and returning capital to shareholders.
- Future Outlook: The company expects to end the year in a net cash to zero net leverage position, further solidifying its leadership in the golf equipment market and positioning itself for future growth opportunities.
See More
Callaway Golf Fully Repays Term Loan B
- Loan Repayment Milestone: Callaway Golf Company has fully repaid approximately $163 million remaining under its Term Loan B facility, following a voluntary prepayment of $1 billion in January 2026, which simplifies the capital structure and is expected to reduce future cash interest expenses, thereby enhancing financial flexibility.
- Improved Financial Position: Post-repayment, the company has approximately $53 million in remaining gross debt, including about $44 million under its Japan ABL facility and $9 million in equipment notes and finance leases, alongside over $150 million in cash and cash equivalents, indicating strong liquidity.
- Capital Allocation Priorities: CFO Brian Lynch stated that this repayment aligns with the company's previously communicated capital allocation priorities of reinvesting in the business, maintaining a healthy balance sheet, and returning capital to shareholders, demonstrating a robust approach to future growth strategies.
- Future Outlook: The company expects to achieve a net cash to zero net leverage position by year-end, further solidifying its financial foundation and enhancing market competitiveness, creating more opportunities for future investments and shareholder returns.
See More
Callaway Golf Repays Remaining $163 Million Term Loan
- Loan Repayment Completed: Callaway Golf has successfully repaid the remaining $163 million under its term loan, marking a significant milestone in financial management and enhancing the stability of its capital structure.
- Reduced Financial Burden: By clearing this loan, Callaway will decrease interest expenses, thereby freeing up cash flow for future investments and business expansion, which enhances overall financial flexibility.
- Strategic Focus Shift: With the loan repaid, Callaway can allocate more resources to product development and marketing, further solidifying its market position in the golf industry.
- Investor Confidence Boost: This move may enhance investor confidence in Callaway's future growth potential, potentially leading to a positive impact on its stock price, reflecting the management's commitment to financial health.
See More
Callaway Golf Company Reports Strong Q1 Results Driven by New Products
- Strong Performance: Callaway's Q1 revenue reached $687.5 million, exceeding analyst expectations of $651.8 million with a 9.2% year-on-year growth, indicating robust market demand and effective cost management.
- Profitability Improvement: Adjusted EPS was $0.56, beating the expected $0.42 by 32.5%, reflecting significant enhancements in gross margin and operational efficiency.
- Market Share Growth: CEO Chip Brewer highlighted that the green grass channel has become the company's largest strategic distribution segment, indicating sustained competitiveness in key markets.
- Upward Guidance Revision: The company raised its full-year revenue guidance to $2.04 billion from $2.02 billion, a 1.4% increase, while also exceeding EBITDA expectations, showcasing confidence in future growth prospects.
See More
Nicholas Investment Partners Acquires Callaway Golf Shares
- New Investment Disclosure: On May 15, 2026, Nicholas Investment Partners, LP disclosed a new position in Callaway Golf Company by acquiring 1,125,984 shares valued at approximately $15.80 million, indicating confidence in the company's growth potential.
- Strong Market Performance: As of May 14, 2026, Callaway's stock was priced at $15.22, reflecting a 150% increase over the past year, significantly outperforming the S&P 500's 25% gain, showcasing its robust position in the golf market.
- Improved Financial Health: First-quarter sales rose 9% to $687.5 million, while adjusted EBITDA surged 31% to $163.7 million, with gross margins expanding by 250 basis points, demonstrating success in product demand and pricing strategies.
- Optimistic Outlook: Management raised the full-year revenue forecast to $2.07 billion and adjusted EBITDA to $233 million, while repurchasing $79 million in stock and fully settling $258 million in convertible notes, reflecting strong financial health and confidence in future growth.
See More
Callaway Golf Company Q1 2026 Earnings Call Insights
- Significant Revenue Growth: Callaway Golf Company reported Q1 revenue of $688 million, a 9% year-over-year increase that exceeded expectations, demonstrating strong market performance amid macroeconomic uncertainties.
- Substantial EBITDA Increase: Adjusted EBITDA reached $164 million, up 31% from the previous year, reflecting successful cost control and pricing strategies that further enhanced profitability.
- Stable Market Share: Callaway maintains a #2 market share position in the U.S. golf equipment market, with March golf ball market share rising 350 basis points year-over-year to 23.9%, indicating strong product demand and market response.
- Optimistic Future Outlook: Management raised full-year 2026 net sales expectations to $2.015 billion to $2.070 billion, while adjusted EBITDA is projected to reach $211 million to $233 million, reflecting confidence in future performance.
See More
Callaway Golf Fully Repays Term Loan B
- Loan Repayment Milestone: Callaway Golf Company has fully repaid approximately $163 million remaining under its Term Loan B facility, following a voluntary prepayment of $1 billion in January 2026, which simplifies the company's capital structure and is expected to reduce future cash interest expenses.
- Enhanced Financial Flexibility: Post-repayment, the company has approximately $53 million in remaining gross debt, including about $44 million under its Japan ABL facility and $9 million in equipment notes and finance leases, alongside over $150 million in unrestricted cash and cash equivalents, thereby enhancing its financial flexibility.
- Capital Allocation Priorities: CFO Brian Lynch stated that this repayment marks a significant milestone in the balance sheet actions outlined earlier this year, indicating the company's commitment to reinvesting in the business, maintaining a healthy balance sheet, and returning capital to shareholders.
- Future Outlook: The company expects to end the year in a net cash to zero net leverage position, further solidifying its leadership in the golf equipment market and positioning itself for future growth opportunities.
See More
Callaway Golf Fully Repays Term Loan B
- Loan Repayment Milestone: Callaway Golf Company has fully repaid approximately $163 million remaining under its Term Loan B facility, following a voluntary prepayment of $1 billion in January 2026, which simplifies the capital structure and is expected to reduce future cash interest expenses, thereby enhancing financial flexibility.
- Improved Financial Position: Post-repayment, the company has approximately $53 million in remaining gross debt, including about $44 million under its Japan ABL facility and $9 million in equipment notes and finance leases, alongside over $150 million in cash and cash equivalents, indicating strong liquidity.
- Capital Allocation Priorities: CFO Brian Lynch stated that this repayment aligns with the company's previously communicated capital allocation priorities of reinvesting in the business, maintaining a healthy balance sheet, and returning capital to shareholders, demonstrating a robust approach to future growth strategies.
- Future Outlook: The company expects to achieve a net cash to zero net leverage position by year-end, further solidifying its financial foundation and enhancing market competitiveness, creating more opportunities for future investments and shareholder returns.
See More
Callaway Golf Repays Remaining $163 Million Term Loan
- Loan Repayment Completed: Callaway Golf has successfully repaid the remaining $163 million under its term loan, marking a significant milestone in financial management and enhancing the stability of its capital structure.
- Reduced Financial Burden: By clearing this loan, Callaway will decrease interest expenses, thereby freeing up cash flow for future investments and business expansion, which enhances overall financial flexibility.
- Strategic Focus Shift: With the loan repaid, Callaway can allocate more resources to product development and marketing, further solidifying its market position in the golf industry.
- Investor Confidence Boost: This move may enhance investor confidence in Callaway's future growth potential, potentially leading to a positive impact on its stock price, reflecting the management's commitment to financial health.
See More
Callaway Golf Company Reports Strong Q1 Results Driven by New Products
- Strong Performance: Callaway's Q1 revenue reached $687.5 million, exceeding analyst expectations of $651.8 million with a 9.2% year-on-year growth, indicating robust market demand and effective cost management.
- Profitability Improvement: Adjusted EPS was $0.56, beating the expected $0.42 by 32.5%, reflecting significant enhancements in gross margin and operational efficiency.
- Market Share Growth: CEO Chip Brewer highlighted that the green grass channel has become the company's largest strategic distribution segment, indicating sustained competitiveness in key markets.
- Upward Guidance Revision: The company raised its full-year revenue guidance to $2.04 billion from $2.02 billion, a 1.4% increase, while also exceeding EBITDA expectations, showcasing confidence in future growth prospects.
See More
Nicholas Investment Partners Acquires Callaway Golf Shares
- New Investment Disclosure: On May 15, 2026, Nicholas Investment Partners, LP disclosed a new position in Callaway Golf Company by acquiring 1,125,984 shares valued at approximately $15.80 million, indicating confidence in the company's growth potential.
- Strong Market Performance: As of May 14, 2026, Callaway's stock was priced at $15.22, reflecting a 150% increase over the past year, significantly outperforming the S&P 500's 25% gain, showcasing its robust position in the golf market.
- Improved Financial Health: First-quarter sales rose 9% to $687.5 million, while adjusted EBITDA surged 31% to $163.7 million, with gross margins expanding by 250 basis points, demonstrating success in product demand and pricing strategies.
- Optimistic Outlook: Management raised the full-year revenue forecast to $2.07 billion and adjusted EBITDA to $233 million, while repurchasing $79 million in stock and fully settling $258 million in convertible notes, reflecting strong financial health and confidence in future growth.
See More
Callaway Golf Company Q1 2026 Earnings Call Insights
- Significant Revenue Growth: Callaway Golf Company reported Q1 revenue of $688 million, a 9% year-over-year increase that exceeded expectations, demonstrating strong market performance amid macroeconomic uncertainties.
- Substantial EBITDA Increase: Adjusted EBITDA reached $164 million, up 31% from the previous year, reflecting successful cost control and pricing strategies that further enhanced profitability.
- Stable Market Share: Callaway maintains a #2 market share position in the U.S. golf equipment market, with March golf ball market share rising 350 basis points year-over-year to 23.9%, indicating strong product demand and market response.
- Optimistic Future Outlook: Management raised full-year 2026 net sales expectations to $2.015 billion to $2.070 billion, while adjusted EBITDA is projected to reach $211 million to $233 million, reflecting confidence in future performance.
See More
