Topgolf Callaway’s second quarter performance prompted a positive market reaction, with results surpassing Wall Street’s expectations despite a year-on-year revenue decline. Management credited improved consumer engagement in golf equipment and the successful rollout of value-focused offerings at Topgolf venues as key drivers. CEO Chip Brewer highlighted, “the excellent consumer response to Topgolf’s value initiatives, which has significantly improved our traffic and sales trends.” The company also benefited from cost reduction efforts and the recent sale of Jack Wolfskin, which sharpened operational focus and lifted segment margins.

Is now the time to buy MODG? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Topgolf Callaway’s Q2 Earnings Call

• Simeon Gutman (Morgan Stanley) questioned the likelihood of a Topgolf spin given management changes. CEO Chip Brewer clarified that a spin is delayed, not less likely, with sale and spin options still under review.
• Matthew Boss (JPMorgan) asked about the health of the golf equipment market. Brewer cited strong U.S. demand and stable rounds played, adding that “the consumer is clearly healthy and engaged.”
• Alex Perry (Bank of America) inquired about the impact of value initiatives on Topgolf traffic and ticket trends. Brewer explained that weekday discounts and the Summer Fun Pass brought in more new customers and set up for fall subscription offerings.
• Noah Zatzkin (KeyBanc Capital Markets) asked about margin stabilization efforts at Topgolf. Brewer highlighted labor model improvements and the Toast system rollout as key drivers of efficiency.
• Joseph Altobello (Raymond James) probed long-term margin targets for legacy Callaway and the balance sheet post-spin. Brewer declined to update targets, citing strong historical performance and the need to wait for more clarity post-separation.

Catalysts in Upcoming Quarters

In the quarters ahead, the StockStory team will be watching (1) the initial uptake and retention of Topgolf’s new subscription offering, (2) whether value-driven promotions can sustain traffic gains without eroding margins, and (3) evidence of stabilization in the Active Lifestyle segment, particularly as new women’s products and digital tools come to market. Developments on the Topgolf separation process and tariff management will also be closely tracked.

Topgolf Callaway currently trades at $8.64, down from $8.80 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

High-Quality Stocks for All Market Conditions

When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.

Don’t let fear keep you from great opportunities and take a look at Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.