Topgolf Callaway Brands Stock (MODG) Jumps on Potential Unit Sale

Topgolf Callaway Brands Corp. (MODG) is seeing a surge in its stock price, up 9% and setting new 52 week highs following reports of advanced discussions to sell its Topgolf division. The potential divestiture to private-equity firm Leonard Green & Partners has sparked market optimism, sending shares higher.

The proposed deal values the Topgolf unit at approximately $1 billion. Leonard Green & Partners already holds a minority stake in Topgolf and has been actively involved in providing feedback on the business. While discussions are ongoing, there remains a possibility that a final agreement may not be reached.

Topgolf Callaway Brands has reported mixed financial results in recent quarters. In the third quarter of 2025, the company announced a 3% year-over-year revenue growth from ongoing business operations, excluding the Jack Wolfskin segment. Topgolf venues exhibited positive same-venue sales growth, and the company raised its full-year 2025 revenue and adjusted EBITDA guidance. However, the first quarter of 2025 saw a 4.5% decline in net revenue to $1.09 billion, although non-GAAP operating income increased by 20.9%, and adjusted EBITDA rose by 4%. This was driven by strong performance in the Golf Equipment segment and effective cost-reduction initiatives.

The company has also been actively restructuring its portfolio. In October 2025, Topgolf Callaway Brands agreed to sell its Jack Wolfskin business to ANTA Sports for $290 million in cash. This move is intended to allow the company to focus on its core operations and enhance financial flexibility ahead of the planned separation of Topgolf.