Callaway Golf Company (CALY) Stock Price & How to Invest

Callaway Golf Company designs and sells golf equipment and golf-adjacent soft goods, and it reports in two segments. Golf Equipment covers Callaway-branded drivers, woods, hybrids, irons and wedges, Odyssey putters, Callaway golf balls and the pre-owned club business, and generated about $917 million of net sales in the first half of 2026, up roughly 7% year over year. Apparel, Gear and Other covers TravisMathew golf and lifestyle apparel, the Callaway soft goods line and OGIO bags and storage, adding about $383 million over the same period. Roughly 70% of revenue therefore comes from hardgoods sold into golf retail, on-course pro shops and direct channels, which makes retailer inventory levels and new product cycles unusually visible drivers of any given quarter.

The reason this looks like a different company than it did two years ago is a deliberate unwinding of the conglomerate. Effective January 1, 2026, Callaway completed the sale of a 60% equity interest in Topgolf and Toptracer to private equity funds managed by Leonard Green & Partners at an equity value of about $1.1 billion, receiving roughly $820 million in net proceeds and keeping a 39.3% stake now carried at about $214 million and accounted for under the equity method. Jack Wolfskin had already been sold in May 2025 for about $290 million. Both are reported as discontinued operations for every period presented, the corporate name reverted to Callaway Golf Company and the NYSE ticker moved from MODG to CALY. Proceeds went straight into the balance sheet: during the second quarter of 2026 the company repaid its $258 million of convertible notes and the $163 million remaining on its term loan B in full, leaving about $278 million of cash against about $273 million of total debt, and it repurchased roughly $84 million of stock in the first half under a $200 million authorization.

Golf is discretionary spending, and equipment purchases are among the first things a pressured consumer defers, so a weaker macro backdrop, a soft weather year or a slowdown in rounds played would hit revenue directly. Supply chains run through Asia, which leaves the cost base exposed to import tariffs, retaliatory measures and currency moves; the roughly $49.5 million of filed tariff refund claims are gain contingencies subject to ongoing legal and administrative proceedings, and additional recoveries are not assured. The retained 39.3% interest in Topgolf is an illiquid, non-controlling stake that flows through the income statement, and it produced a loss from equity method investments of about $28.7 million in the first half of 2026. Competition is intense against Acushnet, Sumitomo Rubber, PING, PXG and others, and heavy promotional activity at retail can erode the very gross margin gains that drive current results. On disclosed legal matters, the Q2 2026 Form 10-Q describes only routine claims, commercial disputes, employment matters and periodic intellectual property claims, states that such matters have historically not been material, and reports about $3.4 million of recorded indemnities tied to the Topgolf and Jack Wolfskin divestitures; no securities class action or other non-routine proceeding is disclosed.

10 analysts publish price targets on CALY, averaging $20.50 against a $17.05 price as of August 2026, or +20.2%. The published targets run from $19.00 to $23.00, a narrow spread, and the ratings split 5 buy, 5 hold, 1 sell. Over the last six months there have been 8 raises and 0 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full CALY forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Callaway Golf Company. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Gross margin expansion is doing the heavy lifting. Second-quarter 2026 GAAP gross margin reached about 50.1%, up roughly 620 basis points year over year, with the non-GAAP figure at about 48.5% and up about 460 basis points. The most optimistic published target, $23.00, assumes this works close to its best case.

The case against. Golf is discretionary spending, and equipment purchases are among the first things a pressured consumer defers, so a weaker macro backdrop, a soft weather year or a slowdown in rounds played would hit revenue directly. The most pessimistic target, $19.00, is roughly what CALY is worth if this bites instead.

Read the full bull and bear case on CALY, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Callaway Golf Company's investor relations page or your broker.

• Revenue (TTM): ~$2.1B (continuing operations)
• Q2 2026 net sales: ~$612M, +2.0% YoY
• Q2 2026 adjusted EBITDA: ~$125M, +35.8% YoY
• FY2026 guidance: net sales ~$2.045B to ~$2.070B; adjusted EBITDA ~$246M to ~$260M
• Market cap: ~$3.0B (~178.5M shares)
• Cash vs total debt: ~$278M cash vs ~$273M debt, roughly net cash

With enterprise value close to market cap, CALY trades near 1.4 times trailing sales and roughly 11 times EV/EBITDA, which is a mid-single-digit-growth consumer-brand multiple rather than a distressed one. Trailing GAAP net income is still negative because it carries the loss recognized on the Topgolf sale in discontinued operations, so continuing-operations figures are the cleaner read: diluted EPS from continuing operations was about $0.40 in the second quarter and about $0.78 in the first half. Shares were near $17 in early August 2026 after roughly doubling over the prior year, meaning a good deal of the margin-expansion story is already reflected in the price.

Other names that sit close to CALY: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get CALY exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so CALY sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where CALY fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

Callaway Golf in 2026 is a smaller, debt-free, higher-margin golf equipment maker that has traded scale for focus, so the case rests on whether an expanding-margin, buyback-funded business can keep growing a category tied to discretionary spending and golf participation.

Whether CALY is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is CALY a buy or a sell?, and where the stock could go from here in the CALY stock forecast.

For income investors, whether CALY pays a dividend and how the payout looks is covered in does CALY pay a dividend? And to weigh CALY against a peer, read the full side-by-side comparisons: CALY vs GOLF and CALY vs NKE.