Discontinued Operations

3 Months Ended

Mar. 31, 2026

Discontinued Operations and Disposal Groups [Abstract]

Divestiture of the Topgolf Business

Effective January 1, 2026, we completed the sale of a 60% equity interest in the Topgolf and Toptracer businesses (“Topgolf”) to private equity funds managed by Leonard Green & Partners, L.P. based upon an equity value of approximately $1,100.0 million. In connection with the sale and related financing transactions, we received net proceeds of $818.8 million, net of preliminary working capital adjustments and cash retained. In the fourth quarter of 2025, we recorded an estimated loss on sale before income taxes of $143.1 million. During the three months ended March 31, 2026, we recorded net working capital adjustments of $2.5 million, resulting in a total loss on sale of $140.6 million after these adjustments.

The results of operations and cash flows of Topgolf are classified as discontinued operations for all periods presented. Our remaining 40% ownership interest in Topgolf is accounted for under the equity method of accounting. In addition to our 40% equity interest, we have continuing involvement with Topgolf through ongoing commercial agreements (see Note 9) and a transition services agreement.

For the three months ended March 31, 2026, we recognized $1.2 million associated with amounts billed under the transition services agreement with Topgolf, which were recognized in other income on the condensed consolidated statement of operations.

Due to the amendment of our 2023 Term Loan B, which required a mandatory prepayment of $500.0 million in connection with the completion of the sale of Topgolf, we attributed $9.5 million of related interest expense to discontinued operations for the three months ended March 31, 2025.

Divestiture of the Jack Wolfskin Business

On May 31, 2025, pursuant to the Sale & Purchase Agreement dated April 10, 2025, we completed the sale of 100% of the equity interests in Callaway Germany Holdco GmbH, which operated the Jack Wolfskin business, for $290.0 million, net of cash retained, and recorded a $26.2 million loss upon completion of the sale. The operating results of Jack Wolfskin are presented as discontinued operations for all periods presented.

Results of Discontinued Operations

The following is a summary of the results of discontinued operations on the condensed consolidated statement of operations for the periods presented below (in millions):


For the three months ended March 31, 2026
	Topgolf		Jack Wolfskin		Total








Selling, general and administrative expense	$	(2.7)	$	—	$	(2.7)




Total costs and expenses	(2.7)		—		(2.7)
Income (loss) from discontinued operations	2.7		—		2.7
Interest income (expense), net	—		—		—
Other income (expense), net	(7.5)		—		(7.5)
Income (loss) from discontinued operations before income taxes	(4.8)		—		(4.8)
Income tax provision (benefit)	(23.0)		—		(23.0)
Net income (loss) from discontinued operations	$	18.2	$	—	$	18.2


For the three months ended March 31, 2025
	Topgolf		Jack Wolfskin		Total
Net revenues:
Products	$	3.6	$	69.5	$	73.1
Services	390.1		—		390.1
Total net revenues	393.7		69.5		463.2
Costs and expenses:
Cost of products	2.2		38.1		40.3
Cost of services, excluding depreciation and amortization	39.1		—		39.1
Other venue expense	321.2		—		321.2
Selling, general and administrative expense	50.3		43.0		93.3
Research and development expense	4.0		1.4		5.4

Venue pre-opening costs	0.6		—		0.6
Total costs and expenses	417.4		82.5		499.9
Income (loss) from discontinued operations	(23.7)		(13.0)		(36.7)
Interest income (expense), net	(43.1)		(0.1)		(43.2)
Other income (expense), net	(0.3)		1.1		0.8
Income (loss) from discontinued operations before income taxes	(67.1)		(12.0)		(79.1)
Income tax provision (benefit)	(18.8)		1.0		(17.8)
Net income (loss) from discontinued operations	$	(48.3)	$	(13.0)	$	(61.3)

Assets and Liabilities of Discontinued Operations

The following tables summarize the assets and liabilities of discontinued operations on the condensed consolidated balance sheets for the periods presented (in millions). As Jack Wolfskin was sold on May 31, 2025, and the sale of Topgolf was completed effective January 1, 2026, there are no assets or liabilities of discontinued operations as of March 31, 2026.


As of December 31, 2025
	Topgolf
Current assets of discontinued operations

Accounts receivable	$	4.2
Inventories	37.1
Other current assets	117.2
Total current assets of discontinued operations	158.5
Long-term assets of discontinued operations
Property, plant and equipment, net	2,072.5
Operating lease right-of-use assets, net	1,066.4
Trade names and trademarks	607.9
Other intangible assets, net	46.5
Other assets, net	218.2
Total long-term assets of discontinued operations	4,011.5
Total assets of discontinued operations	$	4,170.0
Current liabilities of discontinued operations
Accounts payable and accrued expenses	$	117.2
Accrued employee compensation and benefits	56.1

Operating lease liabilities, short-term	59.8
Construction advances	29.1
Deferred revenue	59.7
Other current liabilities	3.1
Total current liabilities of discontinued operations	325.0
Long-term liabilities of discontinued operations
Long-term debt, net	42.8
Operating lease liabilities, long-term	1,102.5
Deemed landlord financing obligations	1,300.7
Other long-term liabilities	342.5
Total long-term liabilities of discontinued operations	2,788.5
Total liabilities of discontinued operations	$	3,113.5

Callaway Golf Co 10-Q