On this page of StockholderLetter.com we present the latest annual shareholder letter from Topgolf Callaway Brands Corp. — ticker symbol MODG. Reading current and past MODG letters to shareholders can bring important insights into the investment thesis.
2024 AN NUAL RE P O RT 2023 AN NUAL RE P O RT
TO MY FELLOW SHAREHOLDERS 2024 was a year of both challenges and progress for Topgolf Callaway Brands. While our stock performance remained under pressure through the year a reality that weighs heavily on us we delivered strong brand performance across the majority of our portfolio and also ended the year by exceeding our Q4 expectations for both net revenue and Adjusted EBITDA, contributing to a 25% year-over-year increase in Total Company Adjusted Free Cash Flow to over $200 million for the year. The sport of golf remains vibrant and healthy. In 2024, rounds played grew by 2%, marking the fth consecutive year surpassing 500 million rounds played. U.S. on-course participation increased by 1.5 million golfers to 28.1 million, supporting steady demand across the industry. Within this dynamic environment, Callaway continues to shine as a storied and trusted brand a true leader in golf equipment innovation and performance. In our Golf Equipment segment we maintained our leadership position in the U.S. golf club market and achieved record market share in golf ball. We were proud to be recognized as the #1 club brand for the third consecutive year ranking rst in Total Clubs, Drivers, Fairway Woods, and Hybrids. Our Ai One putter line drove strong gains, while the successful launch of our Chrome Tour ball helped solidify our position as the #2 golf ball brand. Across the board, our products earned high marks for innovation, consumer satisfaction and wins on tour. In our Active Lifestyle segment, TravisMathew once again posted strong performance, deepening its connection with consumers and expanding its reach and market share. Jack Wolfskin made signi cant strides in 2024, streamlining operations and positioning the brand for a return to pro tability off of a smaller revenue base. While operating in a more challenged consumer environment, Topgolf sustained disciplined nancial performance, including strong venue-level margins and positive cash ow for the second consecutive year. However, our same-venue-sales performance was below expectations, as both consumer and corporate spending has pulled back over the last eighteen months. As we move forward, improving this metric is a top priority and we have several promising initiatives underway aimed at doing so. On the strategic front, we are actively working towards the separation of Topgolf from our Core business thus creating both a category leading, high-growth, pure-play venue-based golf entertainment business, and a leader in golf equipment with a highly complementary Active Lifestyle business. We believe this will allow us to unlock value, sharpen our focus, and best position each business for long-term success. Thank you for your continued support and trust in Topgolf Callaway Brands. We remain deeply focused on further developing the full potential of our businesses and, through this, creating shareholder value. Sincerely, Chip Brewer President and Chief Executive Office 5
BOARD OF DIRECTORS ERIK J ANDERSON JOHN F. LUNDGREN ANTHONY S. THORNLEY Vice Chairman of the Board of Directors; Former Executive Chairman, Topgolf International, Inc. Chairman of the Board of Directors; Former Chairman and Chief Executive Officer, Stanley Black & Decker, Inc. Former President and Chief Operating Officer, QUALCOMM Incorporated OLIVER G. BREWER III SCOTT M. MARIMOW President and Chief Executive Officer, Topgolf Callaway Brands Corp. Managing Director, Providence Equity Partners LAURA J. FLANAGAN ADEBAYO O. OGUNLESI Former Chief Executive Officer, Ripple Foods Senior Managing Director, BlackRock, Inc. RUSSELL L. FLEISCHER VARSHA R. RAO General Partner, Battery Ventures Chief Executive Officer, Zeal AI; Former CEO of Nurx BAVAN M. HOLLOWAY Former Vice President of Corporate Audit, The Boeing Company C. MATTHEW TURNEY Chief Financial Officer, Dundon Capital Partners LINDA B. SEGRE Professional Board Member and Advisor; Former Professional Golfer and Former Executive, Diamond Foods, Inc. SENIOR MANAGEMENT OLIVER G. BREWER III GLENN HICKEY BRIAN LYNCH President and Chief Executive Officer Executive Vice President and President, Callaway Golf Executive Vice President, Chief Financial Officer & Chief Legal Officer MARK LEPOSKY ARTHUR STARRS Executive Vice President and Chief Supply Chain Officer Chief Executive Officer, Topgolf REBECCA FINE Chief People Officer MEETING AND INFORMATION CORPORATE DATA Transfer Agent and Registrar COMPUTERSHARE 462 South 4th Street, Suite 1600, Louisville, KY, 40202 800-368-7068 TDD for Hearing Impaired: 800-231-5469 Foreign Shareholders: 201-680-6578 TDD Foreign Shareholders: 201-680-6610 Shareholder Web Site: www.computershare.com/investor Shareholder Online Inquiries: www-us.computershare.com/investor/ contact Independent Registered Public Accounting Firm DELOITTE & TOUCHE LLP 695 Town Center Drive, Suite 1000 Costa Mesa, CA 92626 Investor Relations TOPGOLF CALLAWAY BRANDS CORP. 2180 Rutherford Road Carlsbad, CA 92008 760-931-1771 invrelations@tcbrands.com 2025 VIRTUAL ANNUAL MEETING OF SHAREHOLDERS Thursday, May 29, 2025 Go to www.meetnow.global/MHZXRXU. You may attend the meeting via the Internet and vote during the meeting. Have your proxy card in hand and follow the instructions. For more information visit the Company s website: https://www.topgolfcallawaybrands.com/
FORM 10-K C A L L A W AY G O L F C O M P A N Y 2024 ANNUAL REPORT For the scal year ended December 31, 2024 CERTIFICATIONS In June 2024, the Company filed with the New York Stock Exchange the Annual CEO Certification required under Section 303A.12(a) of the NYSE s Listed Company Manual regarding the Company s compliance with the NYSE s corporate governance listing standards. In March 2025, the Company filed with the Securities and Exchange Commission the certifications of the Company s Chief Executive Officer and Chief Financial Officer required under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 as Exhibits 31.1, 31.2 and 32.1 to the Company s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. FORWARD - LOOKING INFORMATION Statements made in the letter to shareholders that relate to future plans, events, financial results, performance, projections or growth, including statements relating to future industry conditions; brand momentum; ability to innovate and implement strategies, including the ability of Topgolf International, Inc. ( Topgolf ) to grow same venue sales, future strategy, the strength of our golf equipment product pipeline; continued growth and profitability for TravisMathew, Jack Wolfskin s streamlined operations and positioning for a return to profitability, the separation of Topgolf from the core business, and positioning of the business for long-term success and to create shareholder value are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are based upon current information and expectations. Accurately estimating the forward-looking statements is based upon various risks and unknowns, including uncertainty regarding global economic conditions, including relating to inflation, decreases in consumer demand and spending, and any severe or prolonged economic downturn; Topgolf s ability to grow same venue sales; our ability to satisfy the closing conditions to complete the separation of Topgolf on a timely basis, or at all; our ability to realize the expected benefits of the separation in the expected timeframes, if at all; the Company s level of indebtedness; continued availability of credit facilities and liquidity and ability to comply with applicable debt covenants; continued brand momentum and product success; ability to realize the benefits of the continued investments in the Company s business; consumer acceptance of and demand for the Company s products and services; future retailer purchasing activity; the level of promotional activity in the marketplace; and future changes in foreign currency exchange rates and the degree of effectiveness of the Company s hedging programs. For details concerning these and other risks and uncertainties, see Part I, Item IA, Risk Factors contained in the following Annual Report on Form 10-K, as well as the Company s other reports on Forms 10-Q and 8-K subsequently filed with the Securities and Exchange Commission from time to time. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. NON-GAAP INFORMATION Adjusted Free Cash Flow is a non-GAAP measure calculated as cash flows provided by operations less capital expenditures net of proceeds from lease financing and government grants. Management uses Adjusted Free Cash Flow as a supplemental liquidity measure of the cash that is available after capital expenditures that were funded by the Company. Please see Appendix A of the accompanying proxy statement for a reconciliation of Adjusted Free Cash Flow to cash flows provided by operations.
 • shareholder letter icon 4/16/2025 Letter Continued (Full PDF)
 • stockholder letter icon 4/20/2023 MODG Stockholder Letter
 • stockholder letter icon 4/17/2024 MODG Stockholder Letter
 • stockholder letter icon More "Consumer Goods" Category Stockholder Letters
 • Benford's Law Stocks icon MODG Benford's Law Stock Score = 91


MODG Shareholder/Stockholder Letter Transcript:

2024
AN NUAL RE P O RT
2023
AN NUAL RE P O RT


TO MY FELLOW
SHAREHOLDERS
2024 was a year of both challenges and progress for Topgolf Callaway Brands. While our stock
performance remained under pressure through the year   a reality that weighs heavily on us   we
delivered strong brand performance across the majority of our portfolio and also ended the year by
exceeding our Q4 expectations for both net revenue and Adjusted EBITDA, contributing to a 25%
year-over-year increase in Total Company Adjusted Free Cash Flow to over $200 million for the year.
The sport of golf remains vibrant and healthy. In 2024, rounds played grew by 2%, marking the    fth
consecutive year surpassing 500 million rounds played. U.S. on-course participation increased by
1.5 million golfers to 28.1 million, supporting steady demand across the industry. Within this dynamic
environment, Callaway continues to shine as a storied and trusted brand   a true leader in golf
equipment innovation and performance.
In our Golf Equipment segment we maintained our leadership position in the U.S. golf club market
and achieved record market share in golf ball. We were proud to be recognized as the #1 club brand
for the third consecutive year   ranking    rst in Total Clubs, Drivers, Fairway Woods, and Hybrids. Our
Ai One putter line drove strong gains, while the successful launch of our Chrome Tour ball helped
solidify our position as the #2 golf ball brand. Across the board, our products earned high marks for
innovation, consumer satisfaction and wins on tour.
In our Active Lifestyle segment, TravisMathew once again posted strong performance, deepening
its connection with consumers and expanding its reach and market share. Jack Wolfskin made
signi   cant strides in 2024, streamlining operations and positioning the brand for a return to
pro   tability off of a smaller revenue base.
While operating in a more challenged consumer environment, Topgolf sustained disciplined    nancial
performance, including strong venue-level margins and positive cash    ow for the second consecutive
year. However, our same-venue-sales performance was below expectations, as both consumer and
corporate spending has pulled back over the last eighteen months. As we move forward, improving
this metric is a top priority and we have several promising initiatives underway aimed at doing so.
On the strategic front, we are actively working towards the separation of Topgolf from our
Core business thus creating both a category leading, high-growth, pure-play venue-based golf
entertainment business, and a leader in golf equipment with a highly complementary Active Lifestyle
business. We believe this will allow us to unlock value, sharpen our focus, and best position each
business for long-term success.
Thank you for your continued support and trust in Topgolf Callaway Brands. We remain deeply
focused on further developing the full potential of our businesses and, through this, creating
shareholder value.
Sincerely,
Chip Brewer
President and Chief Executive Office
5

BOARD OF DIRECTORS
ERIK J ANDERSON
JOHN F. LUNDGREN
ANTHONY S. THORNLEY
Vice Chairman of the Board of Directors;
Former Executive Chairman, Topgolf
International, Inc.
Chairman of the Board of Directors;
Former Chairman and Chief Executive
Officer, Stanley Black & Decker, Inc.
Former President and Chief Operating
Officer, QUALCOMM Incorporated
OLIVER G. BREWER III
SCOTT M. MARIMOW
President and Chief Executive Officer,
Topgolf Callaway Brands Corp.
Managing Director, Providence Equity
Partners
LAURA J. FLANAGAN
ADEBAYO O. OGUNLESI
Former Chief Executive Officer, Ripple
Foods
Senior Managing Director, BlackRock,
Inc.
RUSSELL L. FLEISCHER
VARSHA R. RAO
General Partner, Battery Ventures
Chief Executive Officer, Zeal AI; Former
CEO of Nurx
BAVAN M. HOLLOWAY
Former Vice President of Corporate Audit,
The Boeing Company
C. MATTHEW TURNEY
Chief Financial Officer, Dundon Capital
Partners
LINDA B. SEGRE
Professional Board Member and
Advisor; Former Professional Golfer and
Former Executive, Diamond Foods, Inc.
SENIOR MANAGEMENT
OLIVER G. BREWER III
GLENN HICKEY
BRIAN LYNCH
President and Chief Executive Officer
Executive Vice President and
President, Callaway Golf
Executive Vice President, Chief Financial
Officer & Chief Legal Officer
MARK LEPOSKY
ARTHUR STARRS
Executive Vice President and Chief
Supply Chain Officer
Chief Executive Officer, Topgolf
REBECCA FINE
Chief People Officer
MEETING AND
INFORMATION
CORPORATE DATA
Transfer Agent and Registrar
COMPUTERSHARE
462 South 4th Street, Suite 1600,
Louisville, KY, 40202
800-368-7068
TDD for Hearing Impaired: 800-231-5469
Foreign Shareholders: 201-680-6578
TDD Foreign Shareholders: 201-680-6610
Shareholder Web Site:
www.computershare.com/investor
Shareholder Online Inquiries:
www-us.computershare.com/investor/
contact
Independent Registered
Public Accounting Firm
DELOITTE & TOUCHE LLP
695 Town Center Drive, Suite 1000
Costa Mesa, CA 92626
Investor Relations
TOPGOLF CALLAWAY
BRANDS CORP.
2180 Rutherford Road
Carlsbad, CA 92008
760-931-1771
invrelations@tcbrands.com
2025 VIRTUAL ANNUAL MEETING
OF SHAREHOLDERS
Thursday, May 29, 2025
Go to www.meetnow.global/MHZXRXU.
You may attend the meeting via the
Internet and vote during the meeting. Have
your proxy card in hand and follow the
instructions.
For more information visit the Company   s
website:
https://www.topgolfcallawaybrands.com/

FORM 10-K
C A L L A W AY G O L F C O M P A N Y
2024 ANNUAL REPORT
For the    scal year ended December 31, 2024
CERTIFICATIONS
In June 2024, the Company filed with the New York Stock Exchange the Annual CEO Certification required under Section 303A.12(a)
of the NYSE   s Listed Company Manual regarding the Company   s compliance with the NYSE   s corporate governance listing standards. In
March 2025, the Company filed with the Securities and Exchange Commission the certifications of the Company   s Chief Executive Officer
and Chief Financial Officer required under Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 as Exhibits 31.1, 31.2 and 32.1 to the
Company   s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
FORWARD - LOOKING INFORMATION
Statements made in the letter to shareholders that relate to future plans, events, financial results, performance, projections or growth,
including statements relating to future industry conditions; brand momentum; ability to innovate and implement strategies, including
the ability of Topgolf International, Inc. (   Topgolf   ) to grow same venue sales, future strategy, the strength of our golf equipment
product pipeline; continued growth and profitability for TravisMathew, Jack Wolfskin   s streamlined operations and positioning for a
return to profitability, the separation of Topgolf from the core business, and positioning of the business for long-term success and to
create shareholder value are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These
statements are based upon current information and expectations. Accurately estimating the forward-looking statements is based upon
various risks and unknowns, including uncertainty regarding global economic conditions, including relating to inflation, decreases in
consumer demand and spending, and any severe or prolonged economic downturn; Topgolf   s ability to grow same venue sales; our
ability to satisfy the closing conditions to complete the separation of Topgolf on a timely basis, or at all; our ability to realize the expected
benefits of the separation in the expected timeframes, if at all; the Company   s level of indebtedness; continued availability of credit
facilities and liquidity and ability to comply with applicable debt covenants; continued brand momentum and product success; ability to
realize the benefits of the continued investments in the Company   s business; consumer acceptance of and demand for the Company   s
products and services; future retailer purchasing activity; the level of promotional activity in the marketplace; and future changes in
foreign currency exchange rates and the degree of effectiveness of the Company   s hedging programs. For details concerning these and
other risks and uncertainties, see Part I, Item IA,    Risk Factors    contained in the following Annual Report on Form 10-K, as well as the
Company   s other reports on Forms 10-Q and 8-K subsequently filed with the Securities and Exchange Commission from time to time.
Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
NON-GAAP INFORMATION
Adjusted Free Cash Flow is a non-GAAP measure calculated as cash flows provided by operations less capital expenditures net of
proceeds from lease financing and government grants. Management uses Adjusted Free Cash Flow as a supplemental liquidity measure
of the cash that is available after capital expenditures that were funded by the Company. Please see Appendix A of the accompanying
proxy statement for a reconciliation of Adjusted Free Cash Flow to cash flows provided by operations.



shareholder letter icon 4/16/2025 Letter Continued (Full PDF)
 

MODG Stockholder/Shareholder Letter (Topgolf Callaway Brands Corp.) | www.StockholderLetter.com
Copyright © 2023 - 2025, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.