Evaluating How Callaway Golf (CALY) is Unlocking Value

Soumya Eswaran

Tue, July 28, 2026 at 7:56 AM PDT 3 min read

O'Keeffe Stevens Advisory, an investment advisory firm, released its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. During Q2 2026, the market experienced notable dispersion between perceived AI losers and winners. The firm has made investments early in AI infrastructure companies, which yielded gains during market repricing. The second quarter experienced strong equity rallies, with the S&P 500 gaining 15.2% and the Nasdaq 21.4%, marking the best quarter since Q2 2020. While the software sector faced challenges, with the iShares Software ETF dropping ~27% before a rally, reflecting high volatility. This volatility is seen as an opportunity, despite the potential for 'dead money' in underperforming stocks. The firm remains cautious, focuses on owning durable businesses at reasonable prices, holding cash, and hedging risks to navigate unpredictability. In addition, please check the Strategy's top five holdings to know its best picks in 2026.

In its Q2 2026 investor letter, O'Keeffe Stevens Advisory highlighted Callaway Golf Company (NYSE:CALY). Callaway Golf Company (NYSE:CALY) is a global manufacturer of golf equipment, golf and lifestyle apparel, and other accessories. On July 27, 2026, Callaway Golf Company (NYSE:CALY) closed at $18.27 per share, reflecting a market capitalization of $3.28 billion. Callaway Golf Company (NYSE:CALY) posted a one-month return of -2.77%, while its shares gained 89.72% over the past 52 weeks.

O'Keeffe Stevens Advisory stated the following regarding Callaway Golf Company (NYSE:CALY) in its Q2 2026 investor update:

"Callaway Golf Company (NYSE:CALY): Post the announced sale of their TopGolf business, the next catalyst to the story is demonstrating the clean, high-quality business of the remaining club, ball, and apparel business. Q1 net sales rose 9.2% to $687.5m, adjusted EBITDA climbed 31.1% to $163.7 million, and non-GAAP net income from continuing operations increased 96%, with gross margin up roughly 260 basis points, absorbing about $18m of incremental tariX expense. Management raised its full-year outlook, and the summer thus far has been a net positive for the golf industry. On capital return, through April 30, Callaway repurchased 5.6 million shares at an average cost of $14.08 ($79 million of the $200 million authorization), and on May 1 the company settled its $258 million of convertible notes in cash and remains in a net cash position. Our thesis continues to play out, and while the stock has materially appreciated, we still see upside to numbers. Management is acting exactly as expected, reducing debt, returning capital a complex-to-simple story easy for all to understand better."