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Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

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Equity Bottom-Up

<div><ul><li>GOLF reported 1Q26 GAAP EPS of $1.36 versus $1.62 in 1Q25. </li><li>We note that while the company provides adjusted EBITDA, it does not adjust EPS for one-time items, nor does it discuss EPS in its quarterly commentary or outlook.</li><li>If we apply the GAAP tax rate to adjusted pretax income, EPS was $1.42 versus $1.39, a penny below our $1.43 estimate.</li></ul></div>

GOLF reported 1Q26 GAAP EPS of $1.36 versus $1.62 in 1Q25. We note that while the company provides adjusted EBITDA, it does not adjust EPS for one-time items, nor does it discuss EPS in its quarterly commentary or outlook.If we apply the GAAP tax rate to adjusted pretax income, EPS was $1.42 versus $1.39, a penny below our $1.43 estimate.

GOLF: Fundamental Execution More Than Offsetting Macro Crosswinds

<div><ul><li>GOLF reported 4Q25 GAAP EPS of ($0.58) versus ($0.02) in the company’s seasonally smallest quarter. </li><li>We note that while the company provides adjusted EBITDA, it does not adjust EPS for one-time items, nor does it discuss EPS in its quarterly commentary or outlook.</li><li>If we apply the GAAP tax rate to adjusted pretax income, EPS was ($0.26) versus ($0.04), below our ($0.17) estimate.</li></ul></div>

GOLF reported 4Q25 GAAP EPS of ($0.58) versus ($0.02) in the company’s seasonally smallest quarter. We note that while the company provides adjusted EBITDA, it does not adjust EPS for one-time items, nor does it discuss EPS in its quarterly commentary or outlook.If we apply the GAAP tax rate to adjusted pretax income, EPS was ($0.26) versus ($0.04), below our ($0.17) estimate.

GOLF: 4Q Review; Strong Top-Line Beat; Expect 2026 to Be Peak Investment Year

<div><ul><li>GOLF reported 3Q GAAP EPS of $0.81 versus $0.89, down Y/Y due to a much higher tax rate. GAAP operating income increased 13.2%. </li><li>We note that while the company provides adjusted EBITDA, it does not adjust EPS for one-time items, nor does it discuss EPS in its quarterly commentary or outlook.</li><li>If we apply the GAAP tax rate to adjusted pretax income, EPS was $0.87 versus $0.92, above our $0.85 estimate.</li></ul></div>

GOLF reported 3Q GAAP EPS of $0.81 versus $0.89, down Y/Y due to a much higher tax rate. GAAP operating income increased 13.2%. We note that while the company provides adjusted EBITDA, it does not adjust EPS for one-time items, nor does it discuss EPS in its quarterly commentary or outlook.If we apply the GAAP tax rate to adjusted pretax income, EPS was $0.87 versus $0.92, above our $0.85 estimate.

GOLF: 3Q Sales and EBITDA Beat Expectations; Raising Estimates

<ul><li>We are initiating coverage of Acushnet Holdings Corp., a global leader in the design, development, manufacturing, and distribution of performance-driven golf products.</li><li>Titleist golf equipment, which includes golf balls and golf clubs, and FootJoy golf wear have leading market shares, and combined, account for ~85% of annual sales.</li><li>We forecast 2025 full-year sales to increase 2.2% to $2,511.7MM, consistent with management’s commentary on the 2Q25 earnings call for low-single-digit sales increases in 2H25, which is on top of the 2.3% sales growth reported in 1H25. </li></ul>

We are initiating coverage of Acushnet Holdings Corp., a global leader in the design, development, manufacturing, and distribution of performance-driven golf products.Titleist golf equipment, which includes golf balls and golf clubs, and FootJoy golf wear have leading market shares, and combined, account for ~85% of annual sales.We forecast 2025 full-year sales to increase 2.2% to $2,511.7MM, consistent with management’s commentary on the 2Q25 earnings call for low-single-digit sales increases in 2H25, which is on top of the 2.3% sales growth reported in 1H25. 

Acushnet Holdings Corp: Initiating Coverage

United States

Acushnet Holdings Corp. operates as a holding company. The Company, through its subsidiaries, designs, develops, manufactures, and distributes golf products. Acushnet Holdings sells its products primarily to on-course golf pro shops, selected off-course golf specialty and sporting goods stores, and other retailers worldwide.

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Acushnet Holdings (GOLF US)

GOLF: Fundamental Execution More Than Offsetting Macro Crosswinds

1Q26 sales increased 7.1% to $753.0MM, above our $722.8MM estimate, up 2.8%, and consensus of $722.0MM. Ex-currency, sales increased...

Water Tower Research

GOLF: 4Q Review; Strong Top-Line Beat; Expect 2026 to Be Peak Investment Year

We note that while the company provides adjusted EBITDA, it does not adjust EPS for one-time items, nor does it discuss EPS in its quarterly...

Water Tower Research

GOLF: 3Q Sales and EBITDA Beat Expectations; Raising Estimates

GOLF reported 3Q GAAP EPS of $0.81 versus $0.89, down Y/Y due to a much higher tax rate. GAAP operating income increased 13.2%.

Water Tower Research

Acushnet Holdings Corp: Initiating Coverage

We are initiating coverage of Acushnet Holdings Corp., a global leader in the design, development, manufacturing, and distribution of performance...

Water Tower Research

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