Acushnet (GOLF) Financials

Acushnet (NYSE: GOLF) showed a mixed but generally resilient picture in Q1 2026, with strong profitability but weak operating cash flow and a heavier debt load than a year ago.

Revenue rose to $753.0 million from $703.4 million in Q1 2025, while net income improved to $81.2 million from $99.0 million on a continuing-operations basis. Gross margin also remained solid, with gross profit of $355.3 million, or about 47.2% of revenue. However, cash from operations was sharply negative in the quarter, largely because of a large swing in operating assets and liabilities, which is something investors should watch closely.

• Revenue increased about 7% year over year in Q1 2026, signaling continued demand growth.
• Gross profit margin remained strong at roughly 47%, showing Acushnet still has healthy pricing and product economics.
• Operating income improved to $120.1 million from $114.5 million in Q1 2025, suggesting the core business remains profitable.
• The company generated $1.36 in basic EPS, versus $1.62 in the prior-year quarter, still a solid profit level despite the decline.
• Acushnet continued to return capital to shareholders through dividends and share repurchases.
• Cash and equivalents increased only modestly in the quarter, with net change in cash of just $1.6 million.
• Inventory was high at $576.7 million, which can reflect seasonal build or demand planning, but also ties up working capital.
• Goodwill and intangible assets remain large parts of the balance sheet, so the company carries meaningful acquisition-related assets.
• Operating cash flow was negative $143.7 million in Q1 2026, versus positive $120.3 million in Q1 2025, a major deterioration.
• The biggest drag on cash flow was a $248.6 million negative change in operating assets and liabilities, pointing to heavy working-capital consumption.

Looking at the recent trend, Acushnet’s business has remained profitable across the last several quarters, but cash generation has been volatile. Q1 and Q2 2025 produced strong operating cash flow, while Q4 2025 and Q1 2026 were much weaker. That volatility matters because it affects debt reduction, buybacks, and overall financial flexibility.

The balance sheet also shows a more leveraged structure than earlier periods. Total debt rose to about $1.15 billion in Q1 2026, compared with roughly $947 million in Q1 2025 and $933 million in Q3 2024. At the same time, total equity fell to $825.1 million from $898.6 million in Q3 2024 and $780.3 million in Q1 2025, reflecting both accumulated moves in the business and capital return activity.

Bottom line: Acushnet remains a profitable, well-established golf equipment and apparel business, but the latest quarter raises a flag on cash conversion. If operating cash flow normalizes in upcoming quarters, the stock’s fundamentals would look healthier; if not, the combination of debt and working-capital pressure could become a bigger concern for investors.