Callaway Golf (CALY) FY 2025 earnings snapshot
Callaway Golf (CALY) closed FY 2025 with fourth quarter revenue of US$367.5 million and a basic EPS loss of US$0.36, while trailing 12 month revenue stood at US$2.1 billion and EPS came in at US$0.21. Over recent quarters, the company has seen quarterly revenue move from US$1.16 billion in Q2 2024 to US$1.11 billion in Q2 2025 and from US$1.01 billion in Q3 2024 to US$934 million in Q3 2025, with EPS shifting from US$0.34 and a loss of US$0.02 in those prior quarters to US$0.11 in Q2 2025 and a loss of US$0.08 in Q3 2025. With net profit margins on a trailing basis at 1.9%, down from 4.5% in the prior year, this update puts the focus firmly on how sustainable the current earnings profile really is.
See our full analysis for Callaway Golf.
With the headline numbers on the table, the next step is to see how this earnings print lines up with the key narratives around Callaway Golf, including growth expectations, profit quality, and where investors see the stock in its earnings cycle.
See what the community is saying about Callaway Golf
NYSE:CALY Revenue & Expenses Breakdown as at May 2026 Margin slide to 1.9% keeps pressure on profitability On a trailing 12 month basis, Callaway Golf generated US$2.06b of revenue and US$38.8 million of net income, which works out to a 1.9% net margin compared with 4.5% the prior year. Consensus narrative points to value and cost programs as a way to support margins over time, yet the current 1.9% margin and recent quarterly losses, including a US$66 million loss in Q4 2025 on US$367.5 million of revenue, show that discounting and weaker segments are still a real drag.
Analysts expect margins to reach 5.3% in about three years, which would require a clear improvement from both the 1.9% trailing margin and the Q3 and Q4 2025 net losses. Traffic gains tied to value offers only help the consensus view if they eventually translate into higher net income than the US$38.8 million earned over the last 12 months.
Bulls argue margin initiatives can lift profitability as recent investments mature and discounting becomes more targeted, so it is worth seeing how that story stacks up against the current 1.9% net margin and the recent loss-making quarters. 🐂 Callaway Golf Bull Case
High P/E of 69.3x versus 1.9% margin The stock trades on a trailing P/E of 69.3x, compared with a peer average of 34.4x and a Global Leisure industry average of 19.7x, while the trailing net margin is 1.9% and trailing EPS is US$0.21. Bears focus on this combination of a high P/E and thin profitability, arguing that even with analysts forecasting roughly 34.6% annual earnings growth, the current price of US$14.77 embeds a lot of faith that margins will rise from 1.9% and that losses like the US$66 million in Q4 2025 will not persist.
The DCF fair value of US$5.91 is well below US$14.77, which critics use to argue that valuation already prices in a strong improvement from the recent period where TTM margins fell from 4.5% to 1.9%. For skeptics, the gap between modest revenue forecasts of about 1.1% per year and the rich 69.3x P/E is the core concern they compare against the earnings growth narrative.
Skeptics warn that when a stock trades at a premium P/E with only 1.9% trailing margins, there is little room for disappointment if earnings growth does not track forecasts. 🐻 Callaway Golf Bear Case
Quarterly swing between profits and losses Across FY 2025, Callaway Golf moved from a small profit of US$2.1 million in Q1 and US$20.3 million in Q2 to losses of US$14.7 million in Q3 and US$66 million in Q4, with EPS shifting from US$0.11 in Q2 to a loss of US$0.08 in Q3 and a loss of US$0.36 in Q4. What stands out against the consensus view of relatively steady earnings progress is this pattern of quarterly volatility, where periods of profit are followed by losses, which investors weighing the forecast of earnings reaching about US$114.4 million by 2029 need to set against the reality that the last two quarters of FY 2025 both reported losses.
The swing from US$1.16b of revenue in Q2 2024 to US$1.11b in Q2 2025 and from US$1.01b in Q3 2024 to US$934 million in Q3 2025 shows that the top line is not on a straight path, even as earnings are expected to compound at roughly 34.6% a year. The company is described as having high earnings quality over the last five years, yet the shift from a 4.5% net margin to 1.9% means investors watching these quarterly losses may question how smooth that quality really feels in practice. Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Callaway Golf on Simply Wall St. Add the company to your watchlist or portfolio so you’ll be alerted when the story evolves.
With mixed signals on margins, valuation and earnings volatility, the key question is what matters most to you right now. Take a closer look at the data, stress test the assumptions behind both the bullish and bearish narratives, and weigh how those trade offs fit your own risk tolerance using this 1 key reward and 1 important warning sign.
See What Else Is Out There
Callaway Golf’s recent 1.9% net margin, back to back quarterly losses and 69.3x P/E highlight how thin profitability looks against a rich valuation.
If you are uneasy about paying up for a stock with such tight margins and earnings swings, compare it with 51 high quality undervalued stocks to find ideas that look more reasonably priced on fundamentals right now.
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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