Topgolf Callaway Brands Corp. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing a decline in overall revenues and profitability compared to the previous fiscal period. Total net revenues for the three months were $1,012.9 million, a decrease of $27.7 million (2.7%) from $1,040.6 million in the same period of 2023. For the nine months, revenues fell by $72.8 million (2.1%) to $3,314.9 million from $3,387.7 million.

The Topgolf segment showed resilience, with revenues increasing by $5.5 million (1.2%) to $453.2 million for the three months and by $48.4 million (3.7%) to $1,370.4 million for the nine months. This growth was attributed to the opening of new venues, despite a decline in same venue sales. Conversely, the Golf Equipment segment experienced a slight revenue increase of $0.1 million for the quarter but a decrease of $30.9 million (2.6%) for the nine months, primarily due to declines in sales in Korea and unfavorable foreign currency impacts. The Active Lifestyle segment saw a significant revenue drop, with a decrease of $33.3 million (11.1%) for the quarter and $90.3 million (10.3%) for the nine months, largely due to reduced wholesale sales.

Profitability was notably impacted, with a net loss of $3.6 million for the three months ended September 30, 2024, compared to a net income of $29.7 million in the same period of 2023. For the nine months, net income decreased to $65.0 million from $172.1 million. Basic loss per share for the quarter was $(0.02), down from earnings of $0.16, while diluted earnings per share for the nine months fell to $0.35 from $0.88.

The company also undertook strategic initiatives, including the acquisition of BigShots Golf for $53.1 million, completed in February 2024, and announced plans to separate into two independent companies by the second half of 2025. This separation will create distinct entities for Callaway (golf equipment) and Topgolf (venue-based entertainment).

Financially, cash and cash equivalents increased to $441.9 million as of September 30, 2024, from $393.5 million at the end of 2023. Total current liabilities decreased to $842.5 million from $947.6 million, while long-term debt also saw a reduction to $1,461.2 million from $1,518.2 million. The company incurred $26.9 million in restructuring costs related to operational efficiencies, with expectations of additional costs in the fourth quarter.

Overall, Topgolf Callaway Brands Corp. faced challenges in revenue generation and profitability amid a competitive market environment, while pursuing strategic growth and operational improvements.