Callaway Golf Company, trading under the ticker $MODG, reported its first-quarter 2025 earnings with adjusted EPS of $0.11, surpassing the estimated loss of $0.04, and revenue of $1.09 billion, slightly above expectations. The company posted a 41% year-over-year increase in net income and improved liquidity to $805 million, up 12% year-over-year. Despite these positive financial results, Topgolf, a subsidiary of Callaway, experienced a 12% decline in same-venue sales and reported negative operating income for the first time since its merger with Callaway. The company attributed some challenges to weak corporate spending and a broad consumer pullback, leading to a reset in Topgolf's value positioning. Callaway maintained its full-year revenue and adjusted EBITDA guidance. Additionally, Callaway announced an agreement to sell its Jack Wolfskin brand to Anta Sports, aiming to enhance business focus and provide financial flexibility to support Topgolf's strategic initiatives. Market sentiment showed shares recovering about 27% off recent lows amid ongoing discussions about the PGA Championship and the evolving golf landscape, including the impact of LIV Golf and considerations around tournament venues and formats.