Callaway Golf CoCALY
Callaway Golf Co Revenue Disclosure
Revenue Recognition
We primarily recognize revenue from the sale of our products. The following table presents our sales disaggregated by operating and reportable segment and major category (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Golf Equipment: | |||||||||||||||||
| Golf clubs | $ | 1,052.9 | $ | 1,060.9 | $ | 1,073.4 | |||||||||||
| Golf balls | 322.2 | 321.8 | 314.5 | ||||||||||||||
| Total Golf Equipment | $ | 1,375.1 | $ | 1,382.7 | $ | 1,387.9 | |||||||||||
| Apparel, Gear and Other: | |||||||||||||||||
| Apparel | $ | 398.8 | $ | 405.6 | $ | 411.7 | |||||||||||
| Gear, accessories & other | 286.2 | 289.4 | 333.1 | ||||||||||||||
Total Apparel, Gear and Other | $ | 685.0 | $ | 695.0 | $ | 744.8 | |||||||||||
| Total Consolidated | $ | 2,060.1 | $ | 2,077.7 | $ | 2,132.7 | |||||||||||
Net sales
We sell our Golf Equipment products and Apparel, Gear and Other products in the United States and internationally, with our principal international regions being Europe and Asia. Golf Equipment product sales are generally higher than Apparel, Gear and Other sales in most regions.
The following table summarizes sales by geographical region (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Sales by Major Geographic Region: | |||||||||||||||||
| United States | $ | 1,363.3 | $ | 1,381.1 | $ | 1,395.7 | |||||||||||
| Europe | 203.8 | 182.1 | 173.4 | ||||||||||||||
| Asia | 363.1 | 379.1 | 436.6 | ||||||||||||||
| Rest of World | 129.9 | 135.4 | 127.0 | ||||||||||||||
| Total | $ | 2,060.1 | $ | 2,077.7 | $ | 2,132.7 | |||||||||||
Licensing, royalty and other income
We have licensing and royalty income from licensing agreements for apparel and soft good products in our Apparel, Gear and Other operating segment. The following table summarizes the licensing and royalty income we received, which is recorded as sales, for the periods presented (in millions):
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Apparel, Gear and Other | $ | 28.8 | $ | 27.1 | $ | 26.9 | ||||||||||||||
Deferred revenue
Our deferred revenue balance includes short-term revenue which consists primarily of revenue from the sale of gift cards and accrued customer loyalty points.
The following table provides a reconciliation of activity related to our short-term deferred revenue balance for the periods presented (in millions):
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Beginning Balance | $ | 15.9 | $ | 12.7 | $ | 10.5 | ||||||||||||||
| Deferral of revenue | 25.2 | 23.4 | 18.5 | |||||||||||||||||
| Revenue recognized | (17.4) | (19.5) | (15.5) | |||||||||||||||||
| Breakage | (2.1) | (1.4) | (0.8) | |||||||||||||||||
| Foreign currency translation and other | (0.1) | 0.7 | — | |||||||||||||||||
| Ending Balance | $ | 21.5 | $ | 15.9 | $ | 12.7 | ||||||||||||||
The following table summarizes the amount of the deferred revenue recognized related to the redemption of gift cards during the periods presented which were included in the deferred revenue balance as of the end of the prior year reporting period (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Deferred revenue recognized from prior period ending balance (excluding breakage) | $ | 3.0 | $ | 5.0 | $ | 3.2 | |||||||||||
Variable consideration
We recognize revenue based on the amount of consideration we expect to receive from customers for the sale of our products adjusted for estimates of variable consideration related to sales returns, discounts and allowances, sales promotions and sales programs, and price concessions that we offer. These estimates are based on the amounts earned or expected to be claimed by customers.
The following table provides a reconciliation of our short-term sales program incentives activity for the periods presented (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Sales Program Incentives: | |||||||||||||||||
| Beginning Balance | $ | 18.2 | $ | 15.9 | $ | 20.1 | |||||||||||
| Additions | 44.5 | 43.4 | 39.3 | ||||||||||||||
| Credits issued | (46.9) | (39.6) | (41.9) | ||||||||||||||
| Foreign currency translation and other | (0.8) | (1.5) | (1.6) | ||||||||||||||
| Ending Balance | $ | 15.0 | $ | 18.2 | $ | 15.9 | |||||||||||
Our provision for the sales return liability fluctuates with the seasonality of the business, while actual sales returns are generally more heavily weighted toward the second half of the year as the golf season comes to an end. The following table provides a reconciliation of the activity related to our sales return reserve for the periods presented (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Sales Return Liability: | |||||||||||||||||
| Beginning Balance | $ | 62.2 | $ | 51.6 | $ | 50.0 | |||||||||||
| Provision | 185.0 | 178.1 | 174.4 | ||||||||||||||
| Sales returns | (183.0) | (167.5) | (172.8) | ||||||||||||||
| Ending Balance | $ | 64.2 | $ | 62.2 | $ | 51.6 | |||||||||||
The following table summarizes the cost recovery of inventory associated with our sales return liability included in other current assets (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cost recovery of inventory | $ | 30.4 | $ | 27.9 | $ | 24.2 | |||||||||||
The following table summarizes the accrued rebate liability associated with our sales program included in accounts payable and accrued expenses (in millions):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Accrued rebate liability | $ | 15.0 | $ | 14.3 | $ | 13.6 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.