NYSE:GOLF
Acushnet Holdings Corp.
A leading global provider of high-performance golf clubs, balls, and apparel that leverages proprietary technology to capture share in the premium sporting goods sector.
Key Metrics
Investment Thesis
Bull Case
Investors should consider Acushnet a defensive growth play within the luxury leisure sector, offering exposure to high-margin premium branding with a dominant market share in golf balls. The balance sheet remains healthy with strong operating cash flows funding substantial share repurchases and dividends, signaling management confidence in future earnings potential. As the global middle class expands, the addressable market for affordable-to-premium golf equipment continues to grow organically.
Bear Case
Valuation multiples may be stretched relative to peers if consumer sentiment towards discretionary hobbies weakens further in the next economic cycle. The company's heavy reliance on specific key customers and retailers creates concentration risk that could lead to sudden revenue volatility if major partnerships are lost. Rising input costs for materials like steel, titanium, and synthetic fabrics could erode margins if the company cannot pass these costs entirely to consumers.
About Acushnet Holdings Corp.
Acushnet Holdings Corp. designs, manufactures, and markets golf equipment and apparel under its flagship TaylorMade and FootJoy brands while also owning the iconic Titleist brand. The company primarily serves professional and amateur golfers globally through direct-to-consumer channels and retail partnerships across North America, Europe, and Asia. Financial data highlights a robust revenue base driven by premium equipment sales in a discretionary spending market.
Analysis
Management Discussion
Management successfully navigated a challenging macro environment, delivering revenue growth of approximately 4% year-over-year despite a decline in net profit attributable to shareholders. Operating cash flow remained strong at $194.4M, indicating efficient working capital management and robust underlying business health even as capital expenditures rose for strategic investments. The company's ability to maintain consistent profitability while expanding its global footprint demonstrates resilient execution.
Industry Overview
The global golf equipment industry is characterized by high brand loyalty and a premium pricing structure, though it faces secular headwinds from demographic shifts and economic uncertainty. Consolidation is ongoing as smaller brands struggle against established players who benefit from economies of scale in manufacturing and marketing. Success in this sector increasingly depends on digital innovation and the ability to engage younger generations through technology-enabled experiences.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $2.27B | $2.38B | $2.46B | $2.56B |
| Cost of Revenue | $1.09B | $1.13B | $1.27B | $1.34B |
| Gross Profit | $1.18B | $1.25B | $1.19B | $1.22B |
| Operating Expenses | $897.7M | $967.2M | $883.5M | $921.8M |
| Operating Income | $281.5M | $285.3M | $304.3M | $299.4M |
| R&D | $56.4M | $64.8M | $67.8M | $76.5M |
| G&A | $833.4M | $888.1M | $801.6M | $833.4M |
| Stock-Based Comp | $24.1M | $29.7M | $30.8M | $28.6M |
| D&A | $41.7M | $51.4M | $55.9M | $55.3M |
| Amortization | $7.9M | $14.2M | $14.0M | $11.9M |
| Other OpEx | $7.9M | $14.2M | $14.0M | $11.9M |
| Non-Operating Income | $-22.1M | $-43.7M | $-54.6M | $-59.9M |
| Interest Income | $743.0K | $1.7M | $1.2M | $1.1M |
| Pre-Tax Income | $259.4M | $241.6M | $249.7M | $239.5M |
| Income Tax | $54.4M | $43.0M | $47.8M | $52.4M |
| Continuing Ops | $205.1M | $198.6M | $201.8M | $187.2M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $205.1M | $198.6M | $201.8M | $187.2M |
| Minority Interest | $5.8M | $178.0K | $-12.5M | $-1.4M |
| Net to Common | $199.3M | $198.4M | $214.3M | $188.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $1.06B | $996.7M | $973.9M | $1.03B |
| Accounts Receivable | $216.7M | $201.4M | $218.4M | $217.5M |
| Inventory | $674.7M | $615.5M | $576.0M | $608.6M |
| Prepaid Expenses | — | — | $126.5M | $149.2M |
| Other Current Assets | $167.7M | $179.8M | $53.1M | $50.1M |
| Long-Term Assets | $1.13B | $1.20B | $1.21B | $1.32B |
| Intangibles | $525.9M | $537.4M | $523.1M | $511.4M |
| Goodwill | $224.8M | $225.3M | $220.1M | $224.3M |
| Operating Leases | $57.6M | $88.8M | $75.7M | $125.7M |
| Other LT Assets | $326.4M | $348.5M | $387.4M | $456.0M |
| Total Assets | $2.19B | $2.20B | $2.18B | $2.34B |
| Current Liabilities | $548.6M | $451.1M | $472.7M | $430.2M |
| Accounts Payable | $167.0M | $150.5M | $150.3M | $157.0M |
| Current Debt | $0 | $351.0K | $722.0K | $661.0K |
| Current Leases | $14.8M | $19.0M | $19.5M | $24.4M |
| Taxes Payable | $40.9M | $46.4M | $36.0M | $34.2M |
| Other Current Liab | $325.9M | $234.8M | $266.1M | $213.8M |
| Long-Term Liabilities | $661.8M | $832.7M | $910.3M | $1.13B |
| Long-Term Debt | $527.5M | $671.8M | $753.1M | $926.2M |
| LT Operating Leases | $44.8M | $73.3M | $60.2M | $105.4M |
| Other LT Liab | $89.5M | $87.5M | $97.1M | $95.6M |
| Total Liabilities | $1.21B | $1.28B | $1.38B | $1.56B |
| Shareholders' Equity | $983.4M | $912.9M | $797.2M | $785.3M |
| Retained Earnings | $473.1M | $159.9M | $180.3M | $142.0M |
| AOCI | $-109.7M | $-104.3M | $-140.3M | $-122.3M |
| Total L&E | $2.19B | $2.20B | $2.18B | $2.34B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $205.1M | $198.6M | $201.8M | $187.2M |
| Non-Cash Adjustments | $-627.7M | $259.2M | $11.8M | $-66.7M |
| Working Capital Changes | $354.8M | $-86.0M | $31.4M | $73.9M |
| Cash from Operations | $-67.8M | $371.8M | $245.1M | $194.4M |
| Capital Expenditures | $61.4M | $75.4M | $74.6M | $74.3M |
| Cash from Investing | $-140.2M | $-101.5M | $-74.6M | $-74.3M |
| Debt Repayments | $315.0M | $0 | $0 | — |
| Share Buybacks | $189.1M | $334.1M | $172.8M | $211.5M |
| Dividends Paid | $52.2M | $52.5M | $54.3M | $56.2M |
| Cash from Financing | $-8.6M | $-264.7M | $-179.7M | $-124.8M |
| FX Effect | $-6.2M | $915.0K | $-3.2M | $1.8M |
| Net Change in Cash | $-222.8M | $6.5M | $-12.4M | $-3.0M |
| Beginning Cash | $281.7M | $58.9M | $65.4M | $53.1M |
| Ending Cash | $58.9M | $65.4M | $53.1M | $50.1M |
Frequently Asked Questions
How does Acushnet Holdings Corp. make money?
The company operates through three primary segments: Equipment (golf clubs, balls, and bags), Apparel & Accessories (footwear, clothing, and headwear), and Licensing & Other. Revenue is concentrated in North America with significant growth coming from international markets, supported by a diverse product portfolio that caters to both high-end professional tour players and mass-market enthusiasts.
What are the main risks for GOLF?
The company faces significant sensitivity to consumer discretionary spending as golf is a non-essential hobby that can be cut during economic downturns. Intense competition from private label manufacturers and lower-priced importers poses constant pressure on margins in the apparel and accessories segment. Global supply chain disruptions and fluctuating currency exchange rates could impact inventory valuations and net income due to significant international operations.
What is GOLF's competitive advantage?
Acushnet possesses deep proprietary technology for ball flight dynamics and clubhead design that creates high switching costs for loyalists. The brand portfolio includes Titleist, the world's best-selling golf ball, which provides immense pricing power and margin stability compared to competitors. A direct-to-consumer digital ecosystem allows for real-time engagement with customers, reducing reliance on third-party retailers and enhancing customer lifetime value.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.