Breaking Down Acushnet Holdings Corp. (GOLF) Financial Health: Key Insights for Investors

You're looking at Acushnet Holdings Corp. (GOLF) and wondering if the golf boom still has legs, especially with inflation and rising operational costs. The Q3 2025 numbers are defintely a mixed bag, so you need to look past the top-line beat. Honestly, the core golf market is still healthy: Acushnet reported Q3 net sales of $657.7 million, a solid 6.0% jump year-over-year, which is why they raised their full-year revenue outlook to a range of $2,520 million to $2,540 million. But here's the quick math: that revenue growth didn't translate to the bottom line, with net income dropping 13.7% to $48.5 million in the quarter, a clear sign that increased manufacturing costs and selling expenses are eating into profitability. The gross margin compression-down 50 basis points to 48.5%-shows the cost pressure is real. The dedicated golfer core is resilient. This is a classic tug-of-war between strong demand and rising operational costs, and you need to know which side is winning.

Revenue Analysis

The core takeaway for Acushnet Holdings Corp. (GOLF) in 2025 is clear: the company is a premium equipment play, with its Titleist segment driving topline growth despite some softness in its FootJoy apparel and footwear business. Management has guided for full-year 2025 consolidated net sales to land between $2.52 billion and $2.54 billion, reflecting a steady, albeit modest, year-over-year increase.

You are defintely seeing the resilience of the dedicated golfer here. For the first nine months of 2025, year-to-date net sales reached $2,081.5 million, a 3.5% increase from the prior year. This growth is a testament to pricing power and successful product cycles, not just market expansion.

The Engine: Titleist Equipment Dominance

Acushnet's revenue streams are heavily concentrated in its Titleist brand, which covers both Golf Balls and Golf Clubs. This combined Titleist Golf Equipment segment is the primary revenue source, accounting for roughly 65.01% of the company's total net sales in the third quarter of 2025, or $427.6 million of the total $657.7 million Q3 revenue.

The Titleist segment is the beating heart of the business, and its strength is split between two product categories:

• Golf Balls: Saw a 6.2% year-over-year growth in Q3 2025, fueled by the successful launch of the 2025 Pro V1 models.
• Golf Clubs: Posted a 5.3% year-over-year increase in Q3 2025, driven by higher average selling prices (ASPs) and the successful launch of the new T-Series irons.

Honestly, selling more units and selling them for a higher price is the holy grail in consumer goods, and Titleist is executing that classic one-two punch right now.

Segment Growth and Regional Shifts

While Titleist is the largest segment, the fastest growth is actually coming from Golf Gear. Here's the quick math on how the segments performed in Q3 2025, showing where the near-term opportunities and risks lie:

The significant change in revenue streams isn't just product-based; it's geographic. The United States, Acushnet's largest market, delivered solid 6.1% growth in Q3 2025, and the EMEA region showed exceptional performance with 20.7% growth. But, you have to be a realist: Japan experienced a concerning decline of 11.5% in the same quarter, primarily due to softness in FootJoy golf wear. This regional variability, especially in Asia, is a clear risk to watch, even as the U.S. and Europe remain vibrant.

For a deeper dive into the valuation and strategic frameworks, you can read the full post: Breaking Down Acushnet Holdings Corp. (GOLF) Financial Health: Key Insights for Investors

Profitability Metrics

You want to know if Acushnet Holdings Corp. (GOLF) is an efficient profit machine or just a high-volume seller. The short answer is they are both, but the margins tell a more nuanced story about cost pressures in 2025. Their focus on premium, performance-driven equipment keeps their gross profitability high, but tariffs and strategic investments are squeezing the operating and net margins.

For the first nine months of 2025, Acushnet Holdings Corp. delivered a YTD net profit margin of approximately 10.7% on net sales of over $2.08 billion. This is a solid return, but it hides a slight margin contraction due to external cost pressures like tariffs.

Gross, Operating, and Net Margins: The 2025 Breakdown

When we look at the core profitability ratios-Gross, Operating, and Net-we see a clear picture of where Acushnet Holdings Corp. generates value and where it faces headwinds. Gross margin, which is the purest measure of product profit, remains strong, but the operating and net figures show the cost of doing business in a complex global market.

Here's the quick math: Acushnet Holdings Corp. generated approximately $1.01 billion in gross profit through the first three quarters of 2025 on $2,081.5 million in net sales.

Trends and Operational Efficiency

The trend is clear: Acushnet Holdings Corp. is growing the top line, but it's a fight to keep the margins expanding. Year-to-date net sales grew 3.5%, and net income grew 3.7%. That's a good sign because net income is growing slightly faster than revenue, but the Q3 gross margin of 48.5% was actually down 50 basis points year-over-year. Why? Tariffs and strategic spending. The company is dealing with an estimated $30 million in incremental full-year gross tariff costs for 2025, but they are working to mitigate over 50% of that impact.

Operational efficiency is being addressed through capital allocation. They've revised their full-year capital expenditures down to $70 million and are investing $21.2 million in a new global Enterprise Resource Planning (ERP) system to streamline operations. They are also taking one-time restructuring charges, including $6.4 million in Q2 2025, as part of a voluntary retirement program designed to defintely streamline the workforce.

• Grow revenue: Net sales up 3.5% YTD.
• Manage costs: Full-year CapEx revised down to $70 million.
• Mitigate risk: Targeting over 50% mitigation of $30 million in incremental 2025 tariffs.

Industry Comparison: A Premium Standout

When you compare Acushnet Holdings Corp.'s margins to a major competitor like Topgolf Callaway Brands, the difference is stark. Topgolf Callaway Brands' latest trailing twelve-month (TTM) consolidated gross margin of 63.3% looks higher, but this includes the high-margin, service-based Topgolf venue business, which is a different beast entirely. Acushnet Holdings Corp. is a pure-play golf equipment and apparel company, and its 48.5% gross margin is a testament to the pricing power of its premium Titleist and FootJoy brands.

The real difference is further down the income statement: Topgolf Callaway Brands reported a negative TTM net margin of -37.1% and a TTM operating margin of just 5.0%. Acushnet Holdings Corp.'s 10.7% YTD net margin and 14.1% Q3 operating margin show superior core profitability and cost control in the manufacturing and distribution of physical goods. This is why the company is often seen as the quality leader in the space. For a deeper look at who is betting on this performance, you can check out Exploring Acushnet Holdings Corp. (GOLF) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

You're looking at Acushnet Holdings Corp. (GOLF) and wondering how they pay for all those Titleist golf balls and FootJoy shoes. It comes down to a classic balancing act between debt and equity. The direct takeaway is that Acushnet Holdings Corp. operates with a higher-than-average financial leverage for the sporting goods sector, but their recent refinancing moves in late 2025 show a smart, proactive approach to managing their debt maturity schedule.

As of the third quarter of 2025, Acushnet Holdings Corp.'s total debt stood at approximately $901.7 million, against a total shareholder equity of about $856.8 million. This combination gives them a Debt-to-Equity (D/E) ratio of roughly 1.05:1 (or 105.2%). This ratio is your quick measure of financial leverage-it means for every dollar of shareholder capital, the company uses $1.05 of debt to finance its assets. This is a noticeable increase from their D/E ratio five years ago, which was closer to 38.1%.

To be fair, a D/E ratio of 1.05:1 is a bit higher than the median for the Sporting and Athletic Goods industry, which was around 0.78 in 2024. That higher ratio signals a more aggressive use of debt to fuel growth, which can amplify returns but also increases risk if the market turns. Still, the company's interest payments are well covered by its Earnings Before Interest and Taxes (EBIT), showing a solid 5.5x interest coverage ratio. That's defintely a good sign of their ability to service the debt.

Here's the quick math on their debt composition from the first quarter of 2025 (in millions):

• Short-Term Debt: $17.3 million
• Long-Term Debt: $926.1 million

The vast majority of their financing is long-term, which is typical for a stable, mature company using debt for strategic investments and growth rather than just covering immediate operational gaps. They are not reliant on short-term borrowing to keep the lights on.

In November 2025, Acushnet Holdings Corp. executed a key strategic move to manage this long-term debt. They announced plans to raise $500 million through an offering of new senior notes due in 2033. The proceeds from this new debt will be used to redeem all $350 million of their outstanding 7.375% Senior Notes due 2028 and repay a portion of their revolving secured credit facility.

This is a clear, proactive action: they are shifting a significant chunk of their debt maturity further out, from 2028 to 2033, which reduces near-term refinancing risk. Plus, the company has publicly stated a target of maintaining average net leverage (Net Debt to Adjusted EBITDA) below 2.25x annually, demonstrating a disciplined approach to their capital structure. They are using debt to grow, but they are also managing the risk profile by extending maturities and setting clear leverage limits. For a deeper look at the company's full financial picture, you can check out Breaking Down Acushnet Holdings Corp. (GOLF) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if Acushnet Holdings Corp. (GOLF) has enough short-term cash to cover its immediate obligations, and honestly, their liquidity position is solid, though their cash flow from operations has seen a dip this year. The company's balance sheet, as of September 30, 2025, shows a healthy cushion, but you should keep an eye on how they manage the inventory increase and the associated working capital needs.

Here's the quick math on their near-term financial health, focusing on the first nine months of the 2025 fiscal year:

Current and Quick Ratios: A Strong Buffer

The Current Ratio and Quick Ratio (Acid-Test Ratio) are your first stop for checking short-term solvency. Acushnet Holdings Corp. is in a good spot here. The Current Ratio, which compares total Current Assets to Current Liabilities, sits at approximately 2.39. This means the company has $2.39 in liquid assets for every dollar of short-term debt, which is defintely a strong indicator of liquidity for a manufacturing business.

The Quick Ratio, which strips out inventory (since it can be slow to convert to cash), is still robust at about 1.27. A Quick Ratio above 1.0 is generally what you want to see. This high figure suggests that even without selling a single golf ball or club from their inventory of $514 million, they can still cover all their Current Liabilities of $461 million with just cash and receivables.

Working Capital Trends and Inventory Management

Acushnet Holdings Corp.'s Working Capital (Current Assets minus Current Liabilities) is substantial at approximately $639 million. What this estimate hides, however, is the underlying trend. The company has been making increased investments in working capital, which is one reason why the Cash Flow from Operating Activities has decreased. You can see this in the inventory figure, which is a major component of current assets.

• Working Capital: $639 million.
• Inventory: $514 million as of Q3 2025.
• Unrestricted Cash: $88 million as of Q3 2025, up from $51 million at the end of 2024.

Increased inventory can be a risk, but in this case, it's likely a strategic build-up to meet anticipated strong demand, especially with new product launches like the Titleist T-Series irons. Still, it means more capital is tied up, which is why operating cash flow has slowed.

Cash Flow Statements Overview

The cash flow statement for the first nine months of 2025 tells a story of solid operations funding aggressive capital allocation. Cash Flow from Operating Activities (CFFO) was $195 million, which is down from the prior year's period, primarily due to those increased working capital requirements and investments in strategic initiatives like IT systems.

The company is spending on its future, too. Cash Flow from Investing Activities is marked by capital expenditures (CapEx) of $51 million. But the real action is in the Financing section, where the company is actively returning capital to shareholders and managing its debt load. They have returned approximately $230 million to shareholders year-to-date, split between $188 million in share repurchases and $42 million in cash dividends. Plus, they are strategically refinancing debt, intending to raise $500 million in senior notes to redeem existing higher-interest debt.

The overall picture is one of a company with excellent operational liquidity that is choosing to aggressively manage its capital structure and reward shareholders. For a deeper dive into who is driving these capital allocation decisions, you should read Exploring Acushnet Holdings Corp. (GOLF) Investor Profile: Who's Buying and Why?

Valuation Analysis

You are looking at Acushnet Holdings Corp. (GOLF) right now, and the quick takeaway is that the market views it as fully valued. Based on the latest data from November 2025, the stock is trading above the average analyst price target, suggesting limited near-term upside and a slight overvaluation at its current price.

The core valuation metrics show a company priced for continued, steady performance. The trailing Price-to-Earnings (P/E) ratio sits at about 21.79, which is higher than the broader market average and reflects the stability of its Titleist and FootJoy brands. Here's the quick math: using the consensus fiscal year 2025 earnings per share (EPS) estimate of $3.06, the forward P/E ratio is even higher, around 26.23, indicating investors are defintely paying a premium for future growth. Also, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio is currently around 13.93, which is a bit elevated compared to its five-year average, but it's a good metric for comparing the total company value (Enterprise Value) to its operating cash flow before non-cash charges (EBITDA).

What this estimate hides is the lack of significant price-to-book (P/B) data in the public domain right now, which would offer a clearer picture of valuation relative to tangible assets. Still, the current multiples signal a mature, quality company that isn't cheap.

The stock price trend over the last 12 months tells a story of strong upward momentum. Acushnet Holdings Corp. (GOLF) has a 52-week range between a low of $55.31 and a high of $84.40. Trading recently at approximately $80.25 (as of November 21, 2025), the stock is sitting close to its high, reflecting positive sentiment following strong Q3 2025 revenue results, even with a slight EPS miss.

When it comes to income, Acushnet Holdings Corp. (GOLF) is a modest dividend payer. Its annual dividend is approximately $0.94 per share, translating to a dividend yield of about 1.20%. This yield is lower than the broader US market average, but the dividend is exceptionally safe. The trailing 12-month payout ratio is a very sustainable 25.68%, meaning the company is only distributing about a quarter of its earnings to shareholders, leaving plenty of cash for reinvestment or debt reduction.

The Wall Street consensus echoes the 'fully valued' sentiment. The average 12-month price target from analysts covering the stock is around $76.50. Given the current price of $80.25, this implies a modest downside of around 4.7%. The consensus rating is a firm 'Hold,' which breaks down as follows:

• Buy Ratings: 2
• Hold Ratings: 5
• Sell Ratings: 1

The analyst community is not rushing to call for a major breakout, but they aren't panicking either. They see a stable business, but the stock price is already running ahead of their models. If you want to dig into who is driving that price action, you should check out Exploring Acushnet Holdings Corp. (GOLF) Investor Profile: Who's Buying and Why?

Your action here is clear: if you are a long-term investor, the valuation is acceptable for a quality brand, but if you are looking for a deep value play, this isn't it. Monitor for a pullback toward the $76.50 price target, or wait for the next earnings report to confirm a clear path to beating the 2026 EPS estimates.

Risk Factors

You're looking for the tripwires in the Acushnet Holdings Corp. (GOLF) story, and honestly, the biggest near-term friction point isn't on the golf course; it's the global trade landscape. The single largest external risk is the ongoing tariff headwind, which directly impacts their cost of goods sold (COGS).

The company is navigating an estimated incremental gross tariff cost of approximately $30 million for the full fiscal year 2025. This isn't just theory; it translated to a 50 basis point drop in gross margin for the third quarter of 2025, pushing the margin to 48.5%. That's a real drag on profitability, even with solid sales growth. The real concern, what management calls the '2026 cliff,' is the projected full, annualized tariff impact of roughly $70 million next year. That's a massive guaranteed cost increase they have to absorb or mitigate.

Here's the quick math on the tariff mitigation efforts:

• Supply Chain Optimization: Shifting sourcing activities for the U.S. market away from China to markets like Vietnam and Taiwan.
• Cost Sharing: Negotiating vendor cost-sharing programs with suppliers.
• Pricing: Selective pricing actions remain an option, but it's a last resort to protect their premium brand image.

They are aiming to mitigate over 50% of the tariff impact, but the remaining unmitigated portion will still pressure margins. This is a classic supply chain challenge that demands a durable and regionally diverse setup, which is central to their Mission Statement, Vision, & Core Values of Acushnet Holdings Corp. (GOLF).

Operational and Market Headwinds

Beyond tariffs, two other risks stand out. First, while the Titleist Golf Equipment segment is strong-driven by new product launches like the Pro V1 franchise and T-Series irons-the company is heavily dependent on the success of its product cycle. If the next generation of clubs or balls doesn't resonate, sales momentum stalls. Second, there's a clear softness in the FootJoy golf wear segment, particularly apparel and footwear, which saw a net sales decrease of 1.9% in the third quarter of 2025.

This regional weakness is most pronounced in Japan and Korea, where macroeconomic factors are making consumers more price sensitive. Acushnet's strategy is to reposition FootJoy to a more premium segment, but that move can cause near-term revenue softness, which is exactly what we're seeing. You can't ignore the risk of consumer price tolerance, especially when the overall golf participation trend-which has been a huge tailwind-starts to slow down or adoption among younger golfers is sluggish.

Finally, keep an eye on internal restructuring. The company initiated a voluntary bridge to retirement (VBR) program, which resulted in $8.6 million in year-to-date restructuring costs through September 30, 2025. While this is a smart, proactive move to manage the workforce long-term, it's a short-term expense that contributed to net income dipping to $48.5 million in Q3 2025, down from $56.2 million last year. They're making the right strategic moves, but it costs money now.

Here is a summary of the key financial risks and the company's action plan:

The core risk is that their premium pricing power, which is defintely strong, gets eroded by the need to pass on tariff costs in a softening regional market.

Your next step should be to model the $70 million 2026 tariff impact against the company's projected full-year 2025 revenue of $2.52 billion to $2.54 billion to see the potential worst-case margin hit.

Growth Opportunities

You want to know where Acushnet Holdings Corp. (GOLF) is going next, and the short answer is: they are doubling down on what works-premium products for the dedicated golfer. Their near-term growth is anchored by a strong product cycle, but the overall growth rate is modest, so don't expect a rocket ship.

The core growth engine for Acushnet Holdings Corp. in 2025 is relentless product innovation. We saw this play out with the successful launch of the new 2025 Pro V1 and Pro V1x golf balls, which are the bread and butter of the Titleist brand. Plus, the momentum from new equipment like the Titleist GT drivers, fairways, and hybrids is driving higher average selling prices in their club segment. This focus on premium, performance-driven gear lets them maintain pricing power even with market pressures.

Here's the quick math on what management and analysts are projecting for the full 2025 fiscal year. The company is navigating tariff headwinds, which they expect to offset a meaningful portion of, but the overall picture remains one of steady, low-single-digit growth.

The company is also making concrete moves to support this growth. They are investing heavily in strategic initiatives, specifically upgrading their IT systems, which is crucial for a global operation. Capital expenditures for the full year are now expected to be approximately $75 million to support these investments and other operational enhancements. This isn't a flashy acquisition, but it's defintely a necessary investment in a modern, scalable business model.

Market expansion is a mixed bag right now. The U.S. and EMEA regions show solid momentum, which is a big win. But, that growth is currently counteracting some softness in the FootJoy apparel and footwear segments, particularly in markets like Japan and Korea. The global golf market remains structurally healthy, though, with worldwide rounds of play in 2025 expected to match or exceed the record set in 2024.

Acushnet Holdings Corp.'s competitive advantage is simple: their brand strength and focus on the 'dedicated golfer' (the ones who play often and buy premium gear). This is a moat. They own some of the most revered names in the sport, which gives them instant credibility and pricing power.

• Titleist's market leadership in golf balls.
• FootJoy's premium golf wear and shoes.
• Durable, regionally diverse supply chain for tariff mitigation.
• Focus on high-margin, performance-driven products.

If you're interested in the capital flows behind this stability, you should check out Exploring Acushnet Holdings Corp. (GOLF) Investor Profile: Who's Buying and Why?. The key action for you is to monitor the new product launches, especially the next wave of Titleist T-Series irons and FootJoy line extensions, as they are the primary short-term catalysts for sustained market share and revenue momentum.