Topgolf Callaway Brands Corp. (MODG)

Topgolf Callaway Brands Corp. stock has experienced significant events in the past six months. The stock was up 59.93% and reached a 52-week high of $14.21 on January 13, 2026. On January 12, 2026, MODG hit a new intraday 52-week high of $13.95, and the board authorized a $200 million share repurchase program. The sale of a 60% interest in its Topgolf and Toptracer business to Leonard Green & Partners for approximately $1.1 billion in November 2025 allowed the company to reduce its debt. The company announced its intent to separate its business into two independent companies: Callaway and Topgolf in September 2024. A disappointing Q2 earnings report in August 2024, showing an 8% drop in Topgolf's same-store sales, led to a $3 decline in the stock price.

Topgolf Callaway Brands experiences significant seasonality due to the nature of the golf industry. Weather impacts customer demand and net revenues for Topgolf locations in northern regions. Financial results for Topgolf are typically strongest during the second and third quarters, with peak demand occurring in the evenings and on weekends. The company employs a tiered pricing strategy to attract more mid-week and mid-day traffic. The corporate events business within Topgolf has shown weak demand trends, with same-venue sales for corporate bookings down 12% year-over-year in Q2 2025.

Topgolf Callaway Brands Corp. is a tech-enabled golf and active lifestyle company that delivers golf equipment, apparel, and entertainment. It operates in three segments: Topgolf, Golf Equipment, and Active Lifestyle. The Topgolf segment features technology-enabled hitting bays and Toptracer ball-flight tracking. The Golf Equipment segment manufactures golf clubs and balls under brands like Callaway and Odyssey. The Active Lifestyle segment offers apparel, footwear, and accessories under brands such as Callaway, TravisMathew, OGIO, and Jack Wolfskin.

Topgolf Callaway Brands Corp. has a global presence in over 120 countries, with key geographical segments including the United States, Europe, Japan, and the Rest of the World. The majority of its revenue comes from the United States. Its golf equipment manufacturing is primarily in Monterrey, Mexico, with additional facilities in the United States, China, Vietnam, Japan, England, and Australia. Golf ball manufacturing mainly occurs in China and Taiwan, with a smaller plant in Massachusetts.

Topgolf Callaway Brands has experienced a mixed reputation, marked by challenges and strategic moves. The Q2 2024 earnings report highlighted a deterioration in the Topgolf division's events business, reflecting a normalization from a post-COVID surge and softness in demand due to slowing economic conditions. However, there has been a turnaround with strong traffic recovery and successful value initiatives driving improved performance for Topgolf without impacting profitability. The divestiture of Jack Wolfskin in 2025 was a positive step to strengthen the balance sheet and sharpen the company's focus on golf-related assets. The Callaway brand maintained its #1 position in U.S. market share for total golf clubs for the third consecutive year in 2024 and achieved record U.S. market share in golf balls.

Topgolf Callaway Brands Corp. is primarily owned by institutional shareholders, who hold 82.80% of the stock. Insiders own 45.35%, and retail investors hold 0.00%. Other data indicates institutional investors hold between 30.56% and 70.39% of the stock, insiders hold around 2.93%, and retail investors hold about 24.58% to 26.68%. Major institutional owners include Providence Equity Partners L.L.C., BlackRock, Inc., Vanguard Group Inc, Shapiro Capital Management Llc, Leonard Green & Partners, L.P., and Dimensional Fund Advisors Lp. Pep Tg Investments LP is the largest individual shareholder, owning 21.18 million shares, representing 11.52% of the company.