Callaway Golf Company's stock experienced a significant intraday plummet of 14.71% on Friday, reflecting a sharp negative reaction from investors.
The decline follows the company's release of disappointing fourth quarter and full year 2025 financial results. Callaway reported a 7.1% drop in golf clubs net sales to $166.1 million for Q4, alongside a GAAP operating loss of $54.1 million and negative Adjusted EBITDA of $25.1 million, marking a significant deterioration from the previous year.
Investor sentiment was further impacted by the company's 2026 guidance, which projects revenue between $1.98 billion and $2.05 billion and Adjusted EBITDA between $170 million and $195 million, both below 2025 levels. The decline in golf equipment sales and increased tariff expenses were cited as key contributors to the weak quarterly performance.