Leisure Facilities Stocks Q3 Teardown: Topgolf Callaway (NYSE:MODG) Vs The Rest

What Happened?

Shares of theater company AMC Entertainment jumped 3.8% in the afternoon session after a recent surge in box office attendance, followed the successful release of "Avatar: Fire and Ash." 

A strong pre-Christmas weekend attracted over 4 million guests and generated $88 million domestically. The release of "Avatar: Fire and Ash" led this strong turnout, generating $88 million in the U.S. and $345 million globally in its opening weekend. Furthermore, AMC hosted screenings of the "Stranger Things" series finale, which attracted over 753,000 viewers. The stock's rise also came as the broader market experienced gains. Despite this positive momentum, some investors likely remained cautious due to concerns over long-term balance sheet issues and fears of dilution from a new note agreement.

After the initial pop the shares cooled down to $1.61, up 2.2% from previous close.

What Is The Market Telling Us

AMC Entertainment’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 17 days ago when the stock dropped 3.2% on the news that investor concerns about the company's underlying financial health overshadowed a report of strong moviegoer attendance over the final weekend of 2025. The company reported that 5.5 million people visited its theaters globally. Despite this positive attendance, the stock's decline reflected deep skepticism about the company's future. Financial data revealed significant challenges, including a substantial debt burden of approximately $8.2 billion and rapid cash consumption.

AMC Entertainment is flat since the beginning of the year, and at $1.61 per share, it is trading 60% below its 52-week high of $4.01 from May 2025. Investors who bought $1,000 worth of AMC Entertainment’s shares 5 years ago would now be looking at an investment worth $78.07.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how leisure facilities stocks fared in Q3, starting with Live Nation .

Leisure facilities companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted their spending from "things" to "experiences". Leisure facilities seek to benefit but must innovate to do so because of the industry's high competition and capital intensity.

The 11 leisure facilities stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 0.6% below.

Thankfully, share prices of the companies have been resilient as they are up 9.2% on average since the latest earnings results.

Live Nation

Owner of Ticketmaster and operator of music festival EDC, Live Nation is a company specializing in live event promotion, venue management, and ticketing services for concerts and shows.

Live Nation reported revenues of $8.50 billion, up 11.1% year on year. This print fell short of analysts’ expectations by 0.9%, but it was still a satisfactory quarter for the company with an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ events estimates.

Unsurprisingly, the stock is down 3.4% since reporting and currently trades at $145.57.

Best Q3: AMC Entertainment

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment operates movie theaters primarily in the US and Europe.

AMC Entertainment reported revenues of $1.3 billion, down 3.6% year on year, outperforming analysts’ expectations by 6.3%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

AMC Entertainment achieved the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 34.5% since reporting. It currently trades at $1.65.

Weakest Q3: United Parks & Resorts

Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.

United Parks & Resorts reported revenues of $511.9 million, down 6.2% year on year, falling short of analysts’ expectations by 5.2%. It was a disappointing quarter as it posted a miss of analysts’ visitors estimates and a significant miss of analysts’ revenue estimates.

As expected, the stock is down 19% since the results and currently trades at $37.43.

Read our full analysis of United Parks & Resorts’s results here.

Planet Fitness

Founded by two brothers who purchased a struggling gym, Planet Fitness is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.

Planet Fitness reported revenues of $330.3 million, up 13% year on year. This number beat analysts’ expectations by 2%. It was a strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and a narrow beat of analysts’ same-store sales estimates.

The stock is up 16.5% since reporting and currently trades at $106.86.

Read our full, actionable report on Planet Fitness here, it’s free.

Xponential Fitness

Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness is a boutique fitness brand offering diverse and specialized exercise experiences.

Xponential Fitness reported revenues of $78.82 million, down 2.1% year on year. This result surpassed analysts’ expectations by 3.9%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 32% since reporting and currently trades at $8.32.

Read our full, actionable report on Xponential Fitness here, it’s free.

What Happened?

Shares of content production and distribution company Sphere Entertainment jumped 4.3% in the morning session after Seaport Global upgraded the company's stock to 'Buy' from 'Neutral' and announced a $106 price target. 

The upgrade from analyst David Joyce signaled a more positive outlook on the company's future performance. A change from 'Neutral' to 'Buy' suggests the analyst believed the stock was poised for growth. The newly established price target of $106 indicated a significant potential upside from its trading price at the time of the report, reflecting renewed confidence in the company's value.

After the initial pop the shares cooled down to $95.29, up 4.3% from previous close.

What Is The Market Telling Us

Sphere Entertainment’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 21 days ago when the stock gained 4.2% on the news that Morgan Stanley upgraded the company's stock to 'Overweight' from 'Equal-Weight' and significantly raised its price target. 

The analyst increased the price target for Sphere Entertainment from $75.00 to $105.00, a 40% jump that reflected a positive view of the company's future market performance. This move boosted investor confidence. Adding to the positive sentiment, analysts at Craig-Hallum also raised their price target on the stock to $100.00 from $90.00, while keeping a Buy rating. Craig-Hallum pointed to strong attendance for "The Wizard of Oz" at the Sphere venue, better overall venue use in Las Vegas, and improved sponsorship deals as key reasons for the higher valuation.

Sphere Entertainment is up 1% since the beginning of the year, and at $95.29 per share, it is trading close to its 52-week high of $96.76 from December 2025. Investors who bought $1,000 worth of Sphere Entertainment’s shares 5 years ago would now be looking at an investment worth $938.73.

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the leisure facilities stocks, including European Wax Center and its peers.

Leisure facilities companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted their spending from "things" to "experiences". Leisure facilities seek to benefit but must innovate to do so because of the industry's high competition and capital intensity.

The 11 leisure facilities stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 0.6% below.

Thankfully, share prices of the companies have been resilient as they are up 7.9% on average since the latest earnings results.

European Wax Center

Founded by two siblings, European Wax Center is a beauty and waxing salon chain specializing in professional wax services and skincare products.

European Wax Center reported revenues of $54.19 million, down 2.2% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

Chris Morris, Chairman and CEO of European Wax Center, Inc., stated: “European Wax Center delivered a solid third quarter performance as we continued to strengthen the fundamentals that power our business model. Our new leadership team is executing with discipline and remains focused on our three strategic priorities: driving sales through traffic growth, improving four-wall profitability for our franchisees, and pursuing disciplined, profitable expansion.”

European Wax Center delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 14.4% since reporting and currently trades at $4.18.

Best Q3: AMC Entertainment

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment operates movie theaters primarily in the US and Europe.

AMC Entertainment reported revenues of $1.3 billion, down 3.6% year on year, outperforming analysts’ expectations by 6.3%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.

AMC Entertainment delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 38.3% since reporting. It currently trades at $1.56.

Weakest Q3: United Parks & Resorts

Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks.

United Parks & Resorts reported revenues of $511.9 million, down 6.2% year on year, falling short of analysts’ expectations by 5.2%. It was a disappointing quarter as it posted a miss of analysts’ revenue estimates.

As expected, the stock is down 19.9% since the results and currently trades at $37.05.

Read our full analysis of United Parks & Resorts’s results here.

Topgolf Callaway

Formed between the merger of Callaway and Topgolf, Topgolf Callaway sells golf equipment and operates technology-driven golf entertainment venues.

Topgolf Callaway reported revenues of $934 million, down 7.8% year on year. This result surpassed analysts’ expectations by 2.3%. It was a very strong quarter as it also logged EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Topgolf Callaway delivered the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is up 42.6% since reporting and currently trades at $13.22.

Read our full, actionable report on Topgolf Callaway here, it’s free for active Edge members.

Lucky Strike

Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.

Lucky Strike reported revenues of $292.3 million, up 12.3% year on year. This number topped analysts’ expectations by 3.3%. Overall, it was a strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 15.7% since reporting and currently trades at $9.34.

Read our full, actionable report on Lucky Strike here, it’s free for active Edge members.