Callaway Golf Co Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Earnings (loss) per common share—basic | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net income (loss) from continuing operations | $ | 38.8 | $ | 93.4 | $ | 99.5 | |||||||||||
| Income (loss) from discontinued operations, net of tax | (448.1) | (1,541.1) | (4.5) | ||||||||||||||
| Net income (loss) | $ | (409.3) | $ | (1,447.7) | $ | 95.0 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted-average common shares outstanding | 183.7 | 183.7 | 185.0 | ||||||||||||||
| Basic earnings (loss) per common share: | |||||||||||||||||
| Continuing operations | $ | 0.21 | $ | 0.51 | $ | 0.54 | |||||||||||
| Discontinued operations | $ | (2.44) | $ | (8.39) | $ | (0.02) | |||||||||||
| Net earnings (loss) per common share | $ | (2.23) | $ | (7.88) | $ | 0.51 | |||||||||||
| Earnings (loss) per common share—diluted | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net income (loss) from continuing operations | $ | 38.8 | $ | 93.4 | $ | 99.5 | |||||||||||
| Add: Interest expense attributable to convertible notes, net of tax | — | 6.5 | 6.5 | ||||||||||||||
| Income (loss) from continuing operations and assumed conversions | 38.8 | 99.9 | 106.0 | ||||||||||||||
| Loss from discontinued operations, net of tax | (448.1) | (1,541.1) | (4.5) | ||||||||||||||
| Net (loss) income attributable to earnings per common share | $ | (409.3) | $ | (1,441.2) | $ | 101.5 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted-average common shares outstanding—basic | 183.7 | 183.7 | 185.0 | ||||||||||||||
| Incremental shares for assumed conversion of Convertible Notes | — | 14.7 | 14.7 | ||||||||||||||
| Outstanding options, restricted stock units and performance share units | 2.0 | 0.9 | 1.4 | ||||||||||||||
| Weighted-average common shares outstanding—diluted | 185.7 | 199.3 | 201.1 | ||||||||||||||
| Diluted earnings (loss) per common share: | |||||||||||||||||
| Continuing operations | $ | 0.21 | $ | 0.50 | $ | 0.53 | |||||||||||
| Discontinued operations | $ | (2.41) | $ | (7.73) | $ | (0.02) | |||||||||||
| Net diluted earnings (loss) per common share | $ | (2.20) | $ | (7.23) | $ | 0.50 | |||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.