Executive Summary

Q3 2025 revenue rose 6.0% (5.3% cc) to $657.7M, with all segments positive; Adjusted EBITDA increased 10.4% to $118.6M and margin expanded to 18.0% despite tariff headwinds .
GAAP diluted EPS was $0.81; versus S&P Global consensus, GOLF beat on revenue ($657.7M vs $632.7M*) and beat on Primary EPS ($0.87* vs $0.85*), signaling resilient demand and good execution in the U.S. and EMEA .
Management raised/introduced FY25 guidance to revenue of $2.52–$2.54B and Adjusted EBITDA of $405–$415M, implying Q4 revenue of ~ $448M and an incremental Q4 tariff headwind of ~$15M within an expected full‑year gross tariff impact of ~$30M .
Capital allocation remained active: dividend declared at $0.235/share and YTD buybacks of $187.5M; post‑quarter, the company priced $500M of 2033 senior notes to redeem 2028 notes and term down revolver borrowings, lowering funding costs and extending duration .

What Went Well and What Went Wrong

What Went Well

Broad‑based top‑line growth: U.S. +6.1% and EMEA +20.7% (14% constant currency cited on the call) with gains across Titleist Golf Equipment, FootJoy Golf Wear, and Golf Gear; segment growth led by Titleist equipment (+5.7%) and Golf Gear (+14.2%) in Q3 .
Product momentum: CEO highlighted “healthy demand” in Pro V1 and a “very successful launch” of new T‑Series irons; FootJoy benefited from Premiere and HyperFlex, fewer closeouts, and glove strength .
Profitability resilience: Adjusted EBITDA +10.4% YoY and margin +70 bps to 18.0% despite ~$10M incremental tariff costs in Q3; management expects to offset a meaningful portion of full‑year tariff headwinds through mitigation actions .

What Went Wrong

GAAP earnings down: Net income fell 13.7% to $48.5M due primarily to higher tax expense (Q3 ETR 37.3% vs 19.3% a year ago), including impacts from jurisdictional mix and the “One Big Beautiful Bill Act” .
Asia softness: Japan sales declined 11.5% (13.4% cc) and Korea was flat (+0.9%, +2.8% cc), with ongoing pressure in FootJoy and premium apparel categories (called out across 2025) .
Tariff burden persists: Q3 had ~$10M incremental tariff costs; full‑year gross tariff headwind expected at ~$30M (now ~$5M better than prior view), and preliminary 2026 gross tariff exposure estimated “just north of $70M” before further mitigation .

Financial Results

Quarterly progression and YoY/seq context

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($M)	$703.4	$720.5	$657.7
Gross Profit ($M)	$337.2	$354.3	$319.1
Gross Margin (%)	47.9% (calc from disclosed)	49.2% (calc from disclosed)	48.5% (mgmt)
Adjusted EBITDA ($M)	$138.9	$143.1	$118.6
Adj. EBITDA Margin (%)	19.7%	19.9%	18.0%
Net Income Attrib. ($M)	$99.4	$75.6	$48.5
Diluted EPS ($)	$1.62	$1.25	$0.81

Notes: Gross margin for Q1/Q2 are calculated from reported gross profit and net sales; Q3 GM% cited by CFO . All amounts GAAP unless noted.

Q3 2025 vs S&P Global consensus

Metric	Consensus	Actual	Surprise
Revenue ($M)	$632.7M*	$657.7M	+$25.0M (+4.0%)*
Primary EPS ($)	$0.85*	$0.87*	+$0.02 (+2.0%)*
EBITDA ($M)	$101.3M*	$105.6M*	+$4.3M (+4.2%)*

Values marked with an asterisk (*) are retrieved from S&P Global. Actual EPS in the 8‑K is GAAP diluted EPS of $0.81; S&P “Primary EPS” is a standardized/normalized measure and not directly comparable to GAAP diluted EPS . S&P EBITDA may not be directly comparable to company‑reported Adjusted EBITDA (which was $118.6M) .

Q3 2025 segment net sales

Segment	Q3 2025 ($M)	Q3 2024 ($M)	YoY %	CC YoY %
Golf Balls	$202.4	$190.6	6.2%	5.6%
Golf Clubs	$225.2	$213.9	5.3%	4.6%
Titleist Golf Equipment	$427.6	$404.5	5.7%	5.0%
FootJoy Golf Wear	$136.5	$131.2	4.0%	3.1%
Golf Gear	$61.2	$53.6	14.2%	13.2%
Total Net Sales	$657.7	$620.5	6.0%	5.3%

Q3 2025 regional net sales

Region	Q3 2025 ($M)	Q3 2024 ($M)	YoY %	CC YoY %
United States	$397.0	$374.2	6.1%	6.1%
EMEA	$91.1	$75.5	20.7%	14.0%
Japan	$36.9	$41.7	(11.5%)	(13.4%)
Korea	$67.7	$67.1	0.9%	2.8%
Rest of World	$65.0	$62.0	4.8%	4.7%
Total	$657.7	$620.5	6.0%	5.3%

Capital and cash KPIs (YTD through Q3)

KPI	9M 2025	9M 2024	Notes
Cash from Operations ($M)	$194.7	$246.2	Lower on higher strategic spend and WC needs
Capex ($M)	$51.3	$42.5	FY25 Capex now ~ $75M (mgmt)
Share Repurchases ($M)	$187.5	$142.3	Includes $62.5M from Magnus in Q3
Dividend/Share (Declared)	$0.235	$0.235	Payable Dec 19, 2025 (record Dec 5)
Net Leverage (trailing avg net debt)	~2.0x	—	As cited by CFO

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	Not quantified in Q1/Q2 updates	$2.52B–$2.54B	Introduced/Updated
Revenue (cc)	FY 2025	—	+2.6% to +3.4% cc	Introduced
Adjusted EBITDA	FY 2025	—	$405M–$415M	Introduced
Tariff Headwind (gross)	FY 2025	~$35M FX headwind discussed; tariff evolving	~$30M gross for FY25; ~$15M in Q4	Improved vs prior view
Tariff Headwind (gross)	FY 2026	—	“Just north of $70M” before mitigation	New disclosure
Capex	FY 2025	~$85M contemplated (Q1)	~ $75M (CFO)	Lower
Dividend	Q4 2025	—	$0.235/share declared	Announced

Post‑quarter capital markets action: Issued/priced $500M 5.625% senior notes due 2033 to redeem $350M 7.375% 2028 notes, repay part of revolver, and pay fees (expected close ~Nov 24, 2025) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
Tariffs and mitigation	Q1: Gross 2025 tariff impact ~$75M; >50% mitigation targeted; routing club heads away from China to VN/TW; selective pricing possible . Q2: Continued mitigation; transformation/IT work ongoing .	Q3: ~$10M incremental tariff in Q3; FY25 gross ~$30M (Q4 ~$15M); 2026 gross “north of $70M,” with plans to mitigate a meaningful portion .	Elevated headwind; mitigation progressing; 2026 planning in focus.
Product momentum (Pro V1, T‑Series, GT metals)	Q1: Pro V1 launch strong; GT metals/hybrids drove growth . Q2: Titleist equipment up; Pro V1 and GT metals cited .	Q3: Healthy ball demand and successful T‑Series irons launch; SM10 wedges mixed due to model year .	Strong and broadening.
Regional dynamics	Q1: EMEA strong; Japan/Korea soft in wearables . Q2: EMEA up; Japan/Korea down; U.S. up .	Q3: U.S. +6.1%; EMEA +20.7%; Japan −11.5%; Korea ~flat; macro softness in JP/KR wearables persists .	U.S./EMEA improving; Asia wearables still pressured.
Supply chain and ERP/IT	Q1: Supply chain diversification; IT optimization/transformation costs . Q2: Continued IT optimization .	Q3: Transformation costs continue; restructuring VBR program; inventory advanced ahead of tariffs .	Execution on multi‑year initiatives; costs tapering into 2026.
Tax and policy	Q1: ETR 17.9% (mix) . Q2: Taxes normalizing .	Q3: ETR 37.3% driven by mix and reduced FDII benefit from “One Big Beautiful Bill Act” .	ETR volatility and policy impacts increase 2H.
FootJoy and apparel	Q1: FootJoy stabilization with premium mix; fewer closeouts . Q2: FootJoy −1.3% in Q2; apparel soft in Asia .	Q3: FJ +4% in Q3; momentum in footwear/gloves; Asia wearables still a drag .	Gradual recovery; portfolio mix improving.

Management Commentary

“Acushnet delivered strong third quarter results… All reportable segments posted gains… healthy demand for Titleist golf balls and the successful launch of our new T‑Series irons.” — David Maher, CEO .
“Third quarter gross margin of 48.5% was down 50 bps versus prior year, primarily related to the headwind from higher tariff costs… we had approximately $10 million in incremental tariff costs in the quarter.” — Sean Sullivan, CFO .
“We expect full‑year 2025 revenue to be in the range of $2.52–$2.54 billion… and adjusted EBITDA… $405–$415 million… This midpoint implies fourth quarter revenue of approximately $448 million… Incremental full‑year gross tariff costs are expected to be $30 million… reflecting a $15 million gross tariff headwind in the fourth quarter.” — Sean Sullivan .
“FootJoy is benefiting from the success of our Premiere and HyperFlex footwear models, fewer footwear closeouts, and steady glove growth.” — David Maher .
“We now expect worldwide rounds in 2025 to match or exceed what was a record in 2024.” — David Maher .

Q&A Highlights

Tariffs/2026 outlook: CFO estimated 2026 gross tariff impact “just north of $70M,” roughly ~$40M incremental vs 2025; mitigation expected to offset a meaningful portion; mix of vendor cost‑sharing, sourcing shifts, and selective pricing .
Demand cadence and Q4: Guide midpoint implies ~$448M Q4 revenue and high single‑digit growth vs Q4 2023; management emphasized two‑year product cadence comparability and continued momentum into Q4 .
Channel inventory: Inventories seasonally low in cold‑weather regions and building in the Sunbelt; in‑line months‑of‑inventory with no unusual pockets; company inventories are healthy with some pull‑forward ahead of tariff deadlines .
Regional color: EMEA acceleration aided by favorable weather and expanded fitting activation; Japan/Korea equipment healthy but wearables soft given premium apparel correction and consumer softness .
Gross margin drivers: Tariffs as primary headwind; seeking operating leverage after elevated OpEx investments in 2024–2025 .

Estimates Context

Q3 2025 vs S&P Global: Revenue beat ($657.7M vs $632.7M*), Primary EPS beat ($0.87* vs $0.85*). EBITDA beat on S&P’s definition ($105.6M* vs $101.3M*), noting non‑comparability to company Adjusted EBITDA .
FY 2025: S&P Global revenue consensus ~$2.536B* sits at the high end of the new $2.52–$2.54B guidance; S&P Global EBITDA consensus ~$412.8M* aligns within the $405–$415M guidance range .
Implication: Modest upward bias to revenue at the top end appears possible; EBITDA range appears appropriately bracketed given tariff impacts and mitigation plans .

Values marked with an asterisk (*) are retrieved from S&P Global.

Key Takeaways for Investors

Broad‑based beat on top line and Primary EPS, with resilient U.S./EMEA demand and new product momentum mitigating tariff and Asia wearables pressures .
Tariff trajectory is the key swing factor into 2026; management disclosed a preliminary ~$70M gross headwind before mitigation, with multiple levers identified to blunt impact .
Mix and cadence advantages (Pro V1, T‑Series irons, fitting network) support above‑category growth even in flat rounds environments, while FootJoy profitability improves on premium mix and fewer closeouts .
FY25 guide brackets S&P consensus; Q4 implied revenue (~~$448M) and tariff headwind (~~$15M) frame near‑term setup for margins and EPS .
Balance sheet/liquidity proactively optimized post‑quarter via $500M notes offering (5.625% due 2033) to redeem 7.375% 2028 notes and partly term down the revolver—supportive of interest expense and duration .
Capital returns remain steady: $0.235 dividend declared and $187.5M YTD buybacks through Q3, with net leverage ~2x, offering flexibility across macro scenarios .

Appendix: Additional Data

Q3 2025 GAAP statements (select lines)

Net sales: $657.658M; Gross profit: $319.123M; SG&A: $204.936M; R&D: $18.605M; Op income: $92.927M; Net income attrib.: $48.511M; Diluted EPS: $0.81 .
Adjusted EBITDA: $118.612M; Adj. EBITDA margin: 18.0% .
YTD (9M) net sales: $2,081.5M; Net income attrib.: $223.4M; Adjusted EBITDA: $400.6M .

Segment/Geography drivers (management)

U.S. growth led by Titleist equipment (+$13.4M), Golf Gear (+$4.8M), and FootJoy (+$2.4M); EMEA/ROW growth across all segments; Japan down across segments; Korea up on balls .

All citations:

Q3 2025 8‑K/press release and exhibits .
Q3 2025 earnings call transcript .
Q2 2025 8‑K .
Q1 2025 8‑K and transcript .
Senior notes press releases (post‑quarter) .

Acushnet Holdings Corp. (GOLF)·Q3 2025 Earnings Summary