Callaway Golf shares surged 18.5% on strong top-line growth and significant margin expansion that surpassed expectations, driven by robust demand across brands and effective cost management despite tariff headwinds.

• Q1 revenue increased 9% year-over-year to $688 million, outpacing market growth in all major regions.
• Adjusted EBITDA rose 31% to $164 million, reflecting excellent operating leverage and margin improvements.
• Gross margin expanded by 260 basis points despite higher tariff expenses, underscoring successful cost initiatives.
• U.S. golf ball market share hit a record 23.9% in March, up 350 basis points, aided by product innovation and improved distribution.
• Business transformation moves, including the Topgolf sale and $1 billion debt repayment, have solidified the balance sheet and enabled a $200 million share repurchase program.