-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Callaway Golf delivered strong Q1 2026 results with net sales of $687.5M (+9.2%) and adjusted EBITDA of $163.7M (+31.1%), demonstrating early benefits from the Topgolf divestiture. Both segments performed well, with Golf Equipment sales growing 9.5% to $486.2M and Apparel increasing 8.4% to $201.3M, while GAAP gross margin expanded 250 bps to 47.5%. The balance sheet transformation is evident with $500M cash against $474M debt, enabling $79M in share repurchases and aggressive capital returns following the strategic divestiture. Management raised full-year 2026 guidance with net sales now expected at $2.015B-$2.070B and adjusted EBITDA at $211M-$233M, reflecting confidence in sustained demand and operational improvements. We are impressed with the company's quick success as a focused entity. However, valuation appears stretched at over 23x consensus 2026 EBITDA estimates even if estimates rise to match the company's guidance.