LEVERAGE NOW BELOW 4X, THE LOWEST LEVEL SINCE 2022
Our strategic framework is fueling sustained momentum, with strong operational and financial results capped by our third consecutive quarter of core business growth.
BOWLING GREEN, Ky., Nov. 07, 2025 (GLOBE NEWSWIRE) -- Holley Performance Brands (NYSE:HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its third quarter ended September 28, 2025.
Third Quarter Highlights vs. Prior Year Period
Net Sales increased 3.2% to $138.4 million compared to $134.0 million last year
Core business net sales1 for the third quarter of 2025 grew by 6.4% compared to the third quarter of 2024 after excluding non-core business net sales1 of approximately $4.0 million for the third quarter of 2024
Net Loss was $(0.8) million, or $(0.01) per diluted share, compared to $(6.3) million, or $(0.05) per diluted share, last year
Net Cash Provided by Operating Activities was $7.4 million compared to Net Cash Used In Operating Activities of $(1.7) million last year
Adjusted Net Income (Loss)2 was $3.3 million compared to $(0.5) million last year
Adjusted EBITDA2 was $27.1 million compared to $22.1 million last year
Free Cash Flow2 was $5.5 million compared to $(2.1) million last year
1 Core business net sales represents Net Sales after excluding non-core business net sales. Non-core business net sales are comprised of divestiture sales and strategic product rationalization sales. Divestitures sales relate to divested businesses (Detroit Speed Engineering, Gear FX and Proforged) prior to the divestiture date, and strategic product rationalization sales relate to discontinued stock keeping units ("SKUs") prior to the SKU discontinuance. Divestiture sales were $2.8 million for the third quarter of 2024, and strategic product rationalization sales were $1.3 million for the third quarter of 2024.
2 See "Use and Reconciliation of Non-GAAP Financial Measures" below.
"We delivered another strong quarter in 2025, underscored by sustained momentum across our all our categories," said Matthew Stevenson, President and Chief Executive Officer of Holley. "We achieved core business net sales growth for the third consecutive quarter. Our focused execution against our strategic framework has supported our transformation efforts and driven strong results in 2025. Year-to-date, our growth has been fueled primarily by strong volume gains of more than 4%, complemented by a ~1% benefit from pricing, reflecting both healthy demand and disciplined execution in the market."
Stevenson continued, "We continue to apply a disciplined approach to our financial strategy. Of note, we generated $5.5 million of Free Cash Flow in the third quarter, more than a $7 million improvement versus last year and prepaid an additional $15 million of debt in the third quarter, and an additional $10 million subsequent to quarter close, bringing the total repayment to $100 million since September 2023. This progress on the financial front has helped lower our leverage ratio to 3.9x at the end of Q3, eclipsing our 4.0x target we set for year-end, and the lowest level since 2022."
"2025 has been a successful year for Holley, so far, and we are looking to build on that and finish the year with momentum as we enter 2026. Given the strong results year-to-date and the effective tariff mitigation efforts throughout the year, we are increasing our guidance ranges for both revenue and Adjusted EBITDA for the full year. Our strategic framework continues to act as a guide to execute and deliver strong results over the long-term."
Strategic Business Highlights
Achieved core business net sales growth for the third quarter of 2025 of 6.4% compared to the third quarter of 2024. Third consecutive quarter of core business sales growth.
Strategic framework drove ~$27.8M in revenue on key initiatives for the third quarter of 2025.
Expanded growth across 17 brands and all divisions within the quarter.
Continued success with B2B partners, resulting in approximately 7.3% growth in the channel for the third quarter of 2025 compared to the third quarter of 2024.
DTC orders grew 4.2% in the third quarter compared to the same period a year ago, representing the seventh consecutive quarter of DTC growth.
Product innovation and strategic pricing initiatives contributed $11.3 million in revenue for the quarter and $30.1 million year-to-date.
Outlook
For the year ended December 31, 2025, we have refined our full-year guidance, inclusive of the expected net impact of tariffs:
Metric
Full Year 2025 Outlook
Net Sales%YOY1
$590 - $605 million2.5% to 5.1%1 vs. Core Business
Adjusted EBITDA*
$120 - $127 million
Capital Expenditures
$10 - $14 million
Depreciation and Amortization Expense
$22 - $24 million
Interest Expense (excluding collar revaluation)
$45 - $50 million
1) PY Comparison Excludes $12.8 million from Divested Non-Core Businesses and $14.0 million in Clearance Sales of Strategic Product Rationalization
* Holley is not providing reconciliations of forward-looking full year 2025 Adjusted EBITDA outlook because certain information necessary to calculate the most comparable GAAP measure, net income, is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, Holley is unable to provide these forward-looking reconciliations without unreasonable effort. Accordingly, Holley is relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these reconciliations.
Holley notes that its outlook for the year-ended December 31, 2025 may vary due to changes in assumptions or market conditions and other factors described below under "Forward-Looking Statements."
Conference Call
A conference call and audio webcast has been scheduled for 8:30 a.m. Eastern Time today to discuss these results. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the investor relations portion of the Company's website at investor.holley.com. For those that cannot join the webcast, you can participate by dialing 877-407-4019 (Toll Free) or 201-689-8337 (Toll) using the access code of 13754501.
For those unable to participate, a telephone replay recording will be available until Friday, November 14, 2025. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13754501. A web-based archive of the conference call will also be available on the Company's website.
Additional Financial Information
The Investor Relations page of Holley's website, investor.holley.com contains a significant amount of financial information about Holley, including our earnings presentation, which can be found under Events & Presentations. Holley encourages investors to visit this website regularly, as information is updated, and new information is posted.
About Holley Performance Brands
Holley Performance Brands (NYSE:HLLY) leads in the design, manufacturing and marketing of high-performance products for automotive enthusiasts. The company owns and manages a portfolio of iconic brands, catering to a diverse community of enthusiasts passionate about the customization and performance of their vehicles. Holley Performance Brands distinguishes itself through a strategic focus on four consumer vertical groupings, including Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, ensuring a wide-ranging impact across the automotive aftermarket industry. Renowned for its innovative approach and strategic acquisitions, Holley Performance Brands is committed to enhancing the enthusiast experience and driving growth through innovation. For more information on Holley Performance Brands and its dedication to automotive excellence, visit https://www.holley.com.
Forward-Looking Statements
Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Holley's future financial or operating performance. For example, projections of future revenue and adjusted EBITDA and other metrics, along with statements regarding the impact of organizational changes, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "or" or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Holley and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: 1) Holley's ability to execute our business strategy, including monetization of services provided and expansions in and into existing and new lines of business; 2) Holley's ability to compete effectively in our market; 3) Holley's ability to successfully design, develop, and market new, effective, and safe products and platforms; 4) Holley's ability to respond to changes in vehicle ownership and type; 5) Holley's ability to maintain and strengthen demand for our products; 6) Holley's ability to grow and effectively manage our growth; 7) Holley's ability to attract new customers in a cost-effective manner and to expand into additional consumer markets; 8) Holley's ability to successfully integrate acquisitions or achieve the expected synergies from such acquisitions; 9) Holley's ability to maintain relationships with customers and suppliers; 10) Holley's ability to retain our management and key employees; 11) costs related to Holley being a public company; 12) disruptions to Holley's operations, including as a result of cybersecurity incidents; 13) changes in applicable laws or regulations; 14) the outcome of any legal proceedings that have been or may be instituted against Holley; 15) general economic and political conditions, including the current macroeconomic environment, political tensions, and war (including the conflict in Ukraine, the conflict in the Middle East, and the possible expansion of such conflicts and potential geopolitical consequences); 16) the possibility that Holley may be adversely affected by other economic, business, and/or competitive factors, including recent events affecting the financial services industry (such as the closures of certain regional banks); 17) Holley's estimates of its financial performance (e.g., the successful execution of cost saving initiatives); 18) Holley's ability to anticipate and manage through disruptions and higher costs in manufacturing, supply chain, logistical operations, and shortages of certain company products in distribution channels; 19) disruptions and costs associated with doing business in certain countries; 20) Holley's ability to adopt and react to risks posed by new technology; 21) inability to predict how products will ultimately be used; 22) Holley's ability to anticipate and manage through the impact of elevated interest rate levels, which cause the cost of capital to increase, as well as respond to inflationary pressures and trade restrictions, including tariffs; and 23) other risks and uncertainties set forth in the section entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission ("SEC") on March 14, 2025, and disclosed in any subsequent filings with the SEC. Although Holley believes the expectations reflected in the forward-looking statements are reasonable, nothing in this press release should be regarded as a representation by any person that the forward-looking statements or projections set forth herein will be achieved or that any of the contemplated results of such forward looking statements or projections will be achieved. There may be additional risks that Holley presently does not know or that Holley currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Holley undertakes no duty to update these forward-looking statements, except as otherwise required by law.
Investor Relations Contacts:Anthony Rozmus / Neel Sikka / Jenna KozlowskiSolebury Strategic
Media Relations Contacts:Jordan Moore, Sydney Goggans, Mighty Communications615-454-2913
[Financial Tables to Follow]
HOLLEY INC. and SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)(In thousands)(Unaudited)
For the thirteen weeks ended
For the thirty-nine weeks ended
September 28,
September 29,
Variance
Variance
September 28,
September 29,
Variance
Variance
2025
2024
($)
(%)
2025
2024
($)
(%)
Net Sales
$
138,373
$
134,038
$
4,335
3.2
%
$
458,078
$
462,170
$
(4,092
)
-0.9
%
Cost of Goods Sold
78,534
81,732
(3,198
)
-3.9
%
264,593
287,512
(22,919
)
-8.0
%
Gross Profit
59,839
52,306
7,533
14.4
%
193,485
174,658
18,827
10.8
%
Selling, General, and Administrative
33,466
30,109
3,357
11.1
%
103,119
97,675
5,444
5.6
%
Research and Development Costs
4,715
4,620
95
2.1
%
13,894
13,743
151
1.1
%
Amortization of Intangible Assets
3,456
3,436
20
0.6
%
10,338
10,307
31
0.3
%
Restructuring Costs
1,360
954
406
42.6
%
2,178
1,566
612
39.1
%
Write-down of assets held-for-sale
-
7,505
(7,505
)
-100.0
%
-
7,505
(7,505
)
-100.0
%
Other Operating Expense
975
119
856
nm
1,232
213
1,019
nm
Operating Expense
43,972
46,743
(2,771
)
-5.9
%
130,761
131,009
(248
)
-0.2
%
Operating Income
15,867
5,563
10,304
185.2
%
62,724
43,649
19,075
43.7
%
Change in Fair Value of Warrant Liability
3,019
(1,041
)
4,060
nm
2,939
(7,570
)
10,509
nm
Change in Fair Value of Earn-Out Liability
1,126
(634
)
1,760
nm
722
(2,341
)
3,063
nm
Loss on Early Extinguishment of Debt
-
-
-
0.0
%
-
141
(141
)
-100.0
%
Interest Expense, Net
11,259
15,010
(3,751
)
-25.0
%
40,341
39,192
1,149
2.9
%
Non-Operating Expense
15,404
13,335
2,069
15.5
%
44,002
29,422
14,580
49.6
%
Income (Loss) Before Income Taxes
463
(7,772
)
8,235
-106.0
%
18,722
14,227
4,495
