Adjusted EBITDA loss widened to $26 million (minus 34.7% of net revenues) from $23 million (minus 24.7%) year-over-year.
Cash and cash equivalents were $117.3 million with total debt approximately $1.2 billion as of June 28, 2025.
Gross margin declined to 11.5% from 14.7% a year ago, impacted by lower volumes, unfavorable product mix, higher trade spend, and $1.7 million in expenses related to suspension of China operations.
Net cash used in operating activities increased to $59.4 million for the first half of 2025 compared to $47.8 million in the prior year period.
Net loss was $33.2 million or $0.43 per share, slightly improved from $34.5 million or $0.53 per share in the prior year period.
Net revenue for Q2 2025 was $75 million, down 20% year-over-year, primarily due to softness in the U.S. retail channel and international foodservice segments.
Operating expenses were $47.4 million, slightly lower than $47.6 million in the prior year, but included $7.5 million in nonrecurring expenses; excluding these, operating expenses showed meaningful reduction.
Strategic Sale of Jack Wolfskin and Financial Flexibility
The company completed the sale of Jack Wolfskin earlier than expected, resulting in approximately $15 million less revenue year-over-year but $7 million higher adjusted EBITDA due to avoided seasonal losses.
The sale enhances financial flexibility and aligns with the strategic focus on core businesses, supporting the planned separation of Topgolf.
The sale's seasonality caused a significant impact on the second half EBITDA, with the business incurring seasonal losses in the first five months of 2025.
The sale reduced revenue by about $265 million and adjusted EBITDA by $26 million for the full year, with the proceeds strengthening liquidity and reducing net debt.
Dafinchi