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 consumer discretionary - leisure facilities stocks fared in Q4, starting with Callaway Golf Company (NYSE: CALY).

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Leisure facilities companies own and operate theme parks, fitness centers, bowling alleys, and other venue-based entertainment destinations, generating revenue from admissions, memberships, and on-site spending. Tailwinds include consumer preference for experiential spending, tourism recovery, and technology-enhanced guest experiences that support premium pricing. Headwinds are notable: high fixed costs, such as real estate, labor, and maintenance, make profitability highly sensitive to attendance fluctuations during economic slowdowns. Weather, pandemics, and safety incidents can disrupt operations unpredictably. Rising construction and labor costs inflate expansion budgets, while competition from at-home entertainment alternatives and other experiential options limits pricing power in many markets.

The 11 consumer discretionary - leisure facilities stocks we track reported a slower Q4. As a group, revenues missed analysts’ consensus estimates by 3.6% while next quarter’s revenue guidance was 0.6% below.

Thankfully, share prices of the companies have been resilient as they are up 5.5% on average since the latest earnings results.

Callaway Golf Company (NYSE: CALY)

Formed between the merger of Callaway and Topgolf, Callaway Golf Company (NYSE: CALY) sells golf equipment and operates technology-driven golf entertainment venues.

Callaway Golf Company reported revenues of $367.5 million, down 1.1% year on year. This print fell short of analysts’ expectations by 53.5%. Overall, it was a softer quarter for the company with full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

"We successfully completed our 2025 strategic initiatives, which were to return Callaway to a pure play golf equipment company and strengthen our balance sheet," commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company.

Callaway Golf Company delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 5.7% since reporting and currently trades at $13.98.

Read our full report on Callaway Golf Company here, it’s free.

Best Q4: Live Nation (NYSE: LYV)

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

Live Nation reported revenues of $6.31 billion, up 11.1% year on year, outperforming analysts’ expectations by 3.5%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The market seems content with the results as the stock is up 1.9% since reporting. It currently trades at $160.40.

Is now the time to buy Live Nation? Access our full analysis of the earnings results here, it’s free.

Dave & Buster's (NASDAQ: PLAY)

Founded by a former game parlor and bar operator, Dave & Buster’s (NASDAQ: PLAY) operates a chain of arcades providing immersive entertainment experiences.

Dave & Buster's reported revenues of $529.6 million, flat year on year, falling short of analysts’ expectations by 4.5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 18.1% since the results and currently trades at $12.79.

Read our full analysis of Dave & Buster’s results here.

Planet Fitness (NYSE: PLNT)

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

Planet Fitness reported revenues of $376.3 million, up 10.5% year on year. This result beat analysts’ expectations by 2.4%. It was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ revenue estimates.

The stock is down 22.2% since reporting and currently trades at $70.60.

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

Sphere Entertainment (NYSE: SPHR)

Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE: SPHR) hosts live entertainment events and distributes content across various media platforms.

Sphere Entertainment reported revenues of $394.3 million, up 27.9% year on year. This number topped analysts’ expectations by 4.4%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.

Sphere Entertainment achieved the fastest revenue growth among its peers. The stock is up 35.6% since reporting and currently trades at $128.52.

Read our full, actionable report on Sphere Entertainment here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.