Holley swings to $7.8M profit in Q3 2026 earnings
Long-term strategic initiatives drove $18.6 million in revenue and delivered $6.1 million in cost savings.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Holley Inc. (HLLY) reported third-quarter 2026 net sales of $141.6 million, up 2.3% year over year; core business net sales grew 6.7% after excluding portfolio divestitures. Net income was $7.8 million versus a $0.8 million loss, and diluted earnings were $0.06 per share versus a $0.01 loss. Adjusted EBITDA was $29.4 million, up 8.6%, with a 20.8% margin versus 19.6%; operating cash flow was $14.1 million versus $7.4 million.
Holley reduced debt by $25 million in the quarter, including a previously announced $15 million repayment; cumulative debt reduction was $125 million since September 2023. Leverage was 3.50x as of September 27, 2026, a four-year low that met the year-end target a quarter early. Free cash flow was $8.8 million versus $5.5 million. For the 39 weeks ended September 27, 2026, operating income fell 36.5% to $39.8 million from $62.7 million, including a $28.6 million loss on sale of assets.
Full-year 2026 outlook was narrowed but remained within prior ranges: net sales of $610 million to $625 million, core business growth of ~2% to ~5%, Adjusted EBITDA of $127 million to $132 million, and interest expense of $40 million to $44 million excluding collar revaluation.
5 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointCore business net sales grew 6.7% after excluding portfolio divestitures.
- Moderate pointAdjusted EBITDA rose 8.6% to $29.4 million in the quarter.
- Moderate pointNet income reached $7.8 million, versus a $0.8 million loss.
- Moderate pointOperating cash flow was $14.1 million, versus $7.4 million.
- Moderate pointDebt fell $25 million; leverage reached 3.50x. 7.1% of market cap
Negative
- Moderate point39-week operating income fell 36.5% to $39.8 million.
Filing Explained
At
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Net sales: $141.6 million
Net income: $7.8 million
Adjusted EBITDA: $29.4 million
+5 more
8 metrics
Net sales
$141.6 million
Quarter ended September 27, 2026; up 2.3% from the prior-year quarter
Net income
$7.8 million
Quarter ended September 27, 2026; compared with a $0.8 million net loss in the prior-year quarter
Adjusted EBITDA
$29.4 million
Quarter ended September 27, 2026; up 8.6% year over year
Net cash provided by operating activities
$14.1 million
Quarter ended September 27, 2026; compared with $7.4 million in the prior-year quarter
Debt reduction
$25 million
During the third quarter of 2026
Credit Agreement Total Leverage Ratio
3.50x
As of September 27, 2026; compared with 3.75x as of December 31, 2025
Operating income
$39.8 million
39 weeks ended September 27, 2026; down 36.5% from $62.7 million in the prior-year period
Full-year net sales outlook
$610 million to $625 million
Full-year 2026 outlook
Key Terms
Adjusted EBITDA Margin, Free Cash Flow, Credit Agreement Total Leverage Ratio, Core Business Growth Rate
4 terms
Adjusted EBITDA Margin financial
"Adjusted EBITDA Margin was 20.8%"
Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.
Free Cash Flow financial
"We define Free Cash Flow as net cash provided by operating activities"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Credit Agreement Total Leverage Ratio financial
"Credit Agreement Total Leverage Ratio"
Core Business Growth Rate financial
"Core Business Growth Rate %"
Earnings Snapshot
Net sales: $141.6 million · Guidance included
Third quarter ended September 27, 2026
Net sales
$141.6 million
Up 2.3% year over year
Net income
$7.8 million
Compared with a net loss of $0.8 million in the prior-year quarter
Adjusted EBITDA
$29.4 million
Up 8.6% year over year
Net cash provided by operating activities
$14.1 million
Compared with $7.4 million in the prior-year quarter
Free Cash Flow
$8.8 million
Compared with $5.5 million in the prior-year quarter
Guidance
For full-year 2026: Net Sales of $610 million to $625 million; Core Business Growth Rate of ~2% to ~5%; Adjusted EBITDA of $127 million to $132 million; Capital Expenditures of $15 million to $20 million; Depreciation and Amortization Expense of $24 million to $26 million; and Interest Expense of $40 million to $44 million, excluding collar revaluation. Net Sales, Adjusted EBITDA and Interest Expense guidance ranges were narrowed but remained within previously communicated ranges.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were HLLY's third-quarter 2026 sales and earnings?
Holley reported $141.6 million in net sales, up 2.3% year over year. Net income was $7.8 million, compared with a $0.8 million net loss in the prior-year quarter; diluted earnings were $0.06 per share versus a $0.01 loss.
What is Holley's full-year 2026 financial outlook?
Holley expects full-year net sales of $610 million to $625 million, core business growth of ~2% to ~5%, Adjusted EBITDA of $127 million to $132 million, and interest expense of $40 million to $44 million excluding collar revaluation. The net sales, Adjusted EBITDA and interest expense ranges were narrowed but remained within previously communicated ranges.
How much debt did HLLY reduce in the third quarter?
Holley reduced debt by $25 million during the quarter, including a previously announced $15 million repayment. Cumulative debt reduction was $125 million since September 2023, and leverage was 3.50x as of September 27, 2026.
How much revenue and cost savings did Holley's long-term strategic initiatives deliver?
Holley stated that its long-term strategic initiatives drove $18.6 million in revenue and delivered $6.1 million in cost savings.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 5, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(270 ) 782-2900
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On November 5, 2026, Holley Inc. (the “Company”) issued a press release announcing its financial results and operational highlights for the Company’s quarter ended September 27, 2026 and providing outlook and guidance for the full year 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated herein by reference.
The information under Item 2.02 of this Report, including Exhibit 99.1, attached hereto, is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Exchange Act or Securities Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Description | ||||||||||
99.1 | Press release dated November 5, 2026 | ||||||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL). | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HOLLEY INC. | ||||||||
Date: | By: | /s/ Jesse Weaver | ||||||
| Name: Jesse Weaver | ||||||||
| Title: Chief Financial Officer | ||||||||
Exhibit 99.1
PRESS RELEASE
 | |||||
| 1A Burton Hills Blvd, Suite 240 Nashville, TN 37215 Holley.com | |||||
CONTINUED NET SALES GROWTH AND MARGIN EXPANSION DRIVE STRONG CASH GENERATION
$25 MILLION OF DEBT PREPAID IN THE QUARTER
LOWEST LEVERAGE IN FOUR YEARS, YEAR-END TARGET OF 3.5X ACHIEVED A QUARTER EARLY
Disciplined Execution Drives Margin Expansion, Stronger Cash Generation and Continued Deleveraging
Nashville, TN. – November 5, 2026 – Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its third quarter ended September 27, 2026.
Third Quarter Highlights vs. Prior Year Period
•Net Sales grew 2.3% to $141.6 million compared to $138.4 million last year
•Core business net sales1 grew by 6.7% after excluding portfolio divestitures due to our strategic portfolio rebalancing initiative
•Net Income was $7.8 million, or $0.06 per diluted share, compared to net loss of $(0.8) million, or $(0.01) per diluted share, last year
•Net Cash Provided by Operating Activities was $14.1 million compared to $7.4 million last year
•Adjusted Net Income2 was $7.7 million compared to $3.3 million last year
•Adjusted EBITDA2 was $29.4 million compared to $27.1 million last year
•Adjusted EBITDA margin1 was 20.8% compared to 19.6% last year
•Free Cash Flow2 was $8.8 million compared to $5.5 million last year
1Core business net sales excludes sales of divested businesses and the portfolio rebalancing initiative.
2See “Use and Reconciliation of Non-GAAP Financial Measures” below.
“Our third quarter results reflect the continued strength of our core business, which has now grown in six of the last seven quarters, and the progress we are making against our strategic priorities. Our teams delivered that performance in a moderating macroeconomic environment, which makes their execution even more impressive, and I am proud of what they accomplished," said Matthew Stevenson, President and Chief Executive Officer of Holley.
Stevenson continued, “Several of the priorities we outlined at midyear came through in the third quarter. Our new national retailer program shipped during the quarter, expanding our shelf presence and putting our brands in front of more enthusiasts. The work we have done to simplify our operations, including exiting non-core businesses such as our Restoration brands, has reduced complexity and contributed to the margin expansion we delivered this quarter. Our strategic decision to embed critical areas of marketing within the divisions is also strengthening brand activation and enthusiast engagement across our portfolio.
“We remain mindful of the consumer environment and have set our outlook accordingly. We believe the actions we have taken, together with our focus on disciplined execution, position Holley well to close out 2026 and to make further progress in the periods ahead.”
Jesse Weaver, Chief Financial Officer of Holley, added, “The third quarter demonstrated continued progress across sales growth, profitability, cash generation, and balance sheet strength. We delivered year-over-year Adjusted EBITDA growth
of 8.6% and generated $8.8 million of free cash flow, a $3.3 million improvement year-over-year, reflecting our continued focus on operational execution and financial discipline.
"Our strong cash generation enabled us to further deleverage during the quarter. We reduced debt by $25 million, inclusive of the previously announced $15 million repayment, bringing cumulative debt reduction to $125 million since September 2023. As a result, leverage declined to a four-year low of 3.50x, achieving our year-end target of 3.5x a quarter ahead of schedule."
"While encouraged by our year-to-date execution, we believe it is prudent to be conservative regarding our outlook given the current consumer environment. We have tightened our full-year revenue, Adjusted EBITDA and interest expense guidance ranges. We remain focused on executing our strategic priorities to generate sustainable free cash flow, and further strengthen our financial position."
Strategic Business Highlights and Recent Events
•27 brands delivered growth across DTC and B2B channels.
•Generated $8.8 million of free cash flow and remain on track for year-end leverage below 3.5x.
•Long Term Strategic initiatives drove $18.6 million in revenue and delivered $6.1 million in cost savings.
•Continued investment in marketing to enhance consumer engagement and brand visibility.
•Reduced debt by $25 million during the quarter, inclusive of the previously announced $15 million repayment, bringing cumulative debt reduction to $125 million since Sept '23.
Outlook
**For the year ending December 31, 2026, our full-year Net Sales, Adjusted EBITDA and Interest Expense guidance ranges have been narrowed but remain within the previously communicated ranges, while our other guidance remains unchanged:
| Metric | Current Full Year 2026 Outlook | ||||
Net Sales Core Business Growth Rate %1 | $610 - $625 million ~2% to ~5% | ||||
| Adjusted EBITDA* | $127 - $132 million | ||||
| Capital Expenditures | $15 - $20 million | ||||
| Depreciation and Amortization Expense | $24 - $26 million | ||||
| Interest Expense (excluding collar revaluation) | $40 - $44 million | ||||
1 Core Business Growth Rate, excludes impact from Portfolio Rebalancing Initiative.
* Holley is not providing reconciliations of forward-looking full year 2026 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-ending December 31, 2026 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 13763297.
For those unable to participate, a telephone replay recording will be available until Thursday, November 12, 2026. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13763297. 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) is home to a portfolio of iconic brands that serve enthusiasts across the high-performance aftermarket. The company designs, engineers, manufactures and markets category-leading products and solutions for automotive enthusiasts through a focused portfolio spanning four consumer vertical groupings: American Performance, Modern Truck & Off-Road, Euro & Import, and Safety & Racing. For more than a century, Holley has built its reputation through innovation, technical expertise and a deep understanding of enthusiast culture. For more information, 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 portfolio rebalancing efforts and 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 and successfully exiting non-core, low profit businesses; 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 complete and 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) Holley’s ability to anticipate, manage, and mitigate the impact of changing trade policies, including tariffs; 20) disruptions and costs associated with doing business in certain countries; 21) Holley’s ability to adopt and react to risks posed by new technology; 22) inability to predict how products will ultimately be used; 23) 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 24) 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, 2025 filed with the U.S. Securities and Exchange Commission (“SEC”) on March 16, 2026, 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:
Sloan Bohlen / Jenna Kozlowski
Solebury Strategic Communications
203-428-3324
holley@soleburystrat.com
Media Relations Contacts:
Nathan Espinosa / Michael Murray
Kahn Media
818-881-5246
Holley@KahnMedia.com
[Financial Tables to Follow]
HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
| For the thirteen weeks ended | For the thirty-nine weeks ended | |||||||||||||||||||||||||||||||||||||||||||||||||
| September 27, | September 28, | Variance | Variance | September 27, | September 28, | Variance | Variance | |||||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ($) | (%) | 2026 | 2025 | ($) | (%) | |||||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 141,558 | $ | 138,373 | $ | 3,185 | 2.3 | % | $ | 460,895 | $ | 458,078 | $ | 2,817 | 0.6 | % | ||||||||||||||||||||||||||||||||||
| Cost of goods sold | 79,308 | 78,534 | 774 | 1.0 | % | 267,365 | 264,593 | 2,772 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Gross profit | 62,250 | 59,839 | 2,411 | 4.0 | % | 193,530 | 193,485 | 45 | 0.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Selling, general, and administrative | 32,850 | 33,466 | (616) | -1.8 | % | 108,679 | 103,119 | 5,560 | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||
| Research and development costs | 3,592 | 4,715 | (1,123) | -23.8 | % | 11,328 | 13,894 | (2,566) | -18.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Amortization of intangible assets | 3,182 | 3,456 | (274) | -7.9 | % | 10,026 | 10,338 | (312) | -3.0 | % | ||||||||||||||||||||||||||||||||||||||||
| Restructuring costs | 2,807 | 1,360 | 1,447 | 106.4 | % | 4,522 | 2,178 | 2,344 | 107.6 | % | ||||||||||||||||||||||||||||||||||||||||
| Loss on sale of assets | 335 | — | 335 | nm | 28,559 | — | 28,559 | nm | ||||||||||||||||||||||||||||||||||||||||||
| Other operating (income) expense | (86) | 975 | (1,061) | nm | (9,427) | 1,232 | (10,659) | nm | ||||||||||||||||||||||||||||||||||||||||||
| Total operating expense | 42,680 | 43,972 | (1,292) | -2.9 | % | 153,687 | 130,761 | 22,926 | 17.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Operating income | 19,570 | 15,867 | 3,703 | 23.3 | % | 39,843 | 62,724 | (22,881) | -36.5 | % | ||||||||||||||||||||||||||||||||||||||||
| Change in fair value of warrant liability | (444) | 3,019 | (3,463) | nm | (2,024) | 2,939 | (4,963) | nm | ||||||||||||||||||||||||||||||||||||||||||
| Change in fair value of earn-out liability | (44) | 1,126 | (1,170) | nm | (1,816) | 722 | (2,538) | nm | ||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | 9,610 | 11,259 | (1,649) | -14.6 | % | 27,729 | 40,341 | (12,612) | -31.3 | % | ||||||||||||||||||||||||||||||||||||||||
| Total non-operating expense | 9,122 | 15,404 | (6,282) | -40.8 | % | 23,889 | 44,002 | (20,113) | -45.7 | % | ||||||||||||||||||||||||||||||||||||||||
| Income before income taxes | 10,448 | 463 | 9,985 | 2,156.6 | % | 15,954 | 18,722 | (2,768) | -14.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 2,625 | 1,269 | 1,356 | nm | 3,304 | 5,848 | (2,544) | nm | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 7,823 | $ | (806) | $ | 8,629 | -1,070.6 | % | $ | 12,650 | $ | 12,874 | $ | (224) | -1.7 | % | ||||||||||||||||||||||||||||||||||
| Comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | 248 | 382 | (134) | -35.1 | % | (2,577) | 1,336 | (3,913) | -292.9 | % | ||||||||||||||||||||||||||||||||||||||||
| Total comprehensive income (loss) | $ | 8,071 | $ | (424) | $ | 8,495 | -2,003.5 | % | $ | 10,073 | $ | 14,210 | $ | (4,137) | -29.1 | % | ||||||||||||||||||||||||||||||||||
| Common Share Data: | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic net income (loss) per share | $ | 0.07 | $ | (0.01) | $ | 0.08 | -800.0 | % | $ | 0.11 | $ | 0.11 | $ | — | nm | |||||||||||||||||||||||||||||||||||
| Diluted net income (loss) per share | $ | 0.06 | $ | (0.01) | $ | 0.07 | -700.0 | % | $ | 0.10 | $ | 0.11 | $ | (0.01) | -9.1 | % | ||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding - basic | 120,329 | 119,406 | 923 | 0.8 | % | 120,144 | 119,140 | 1,004 | 0.8 | % | ||||||||||||||||||||||||||||||||||||||||
| Weighted average common shares outstanding - diluted | 120,877 | 119,406 | 1,471 | 1.2 | % | 121,344 | 119,811 | 1,533 | 1.3 | % | ||||||||||||||||||||||||||||||||||||||||
| nm - not meaningful | ||||||||||||||||||||||||||||||||||||||||||||||||||
HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
| As of | ||||||||||||||
| September 27, 2026 | December 31, 2025 | |||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | 49,889 | $ | 37,231 | ||||||||||
Accounts receivable, less allowance for credit losses of $1,728 and $1,856, respectively | 55,943 | 57,895 | ||||||||||||
| Inventory | 181,596 | 205,661 | ||||||||||||
| Prepaids and other current assets | 17,370 | 15,374 | ||||||||||||
| Total current assets | 304,798 | 316,161 | ||||||||||||
| Property, plant, and equipment, net | 51,800 | 45,127 | ||||||||||||
| Goodwill | 370,958 | 372,340 | ||||||||||||
| Other intangibles assets, net | 366,598 | 396,910 | ||||||||||||
| Right-of-use assets | 38,887 | 33,415 | ||||||||||||
| Other noncurrent assets | 1,924 | — | ||||||||||||
| Total assets | $ | 1,134,965 | $ | 1,163,953 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||
| Accounts payable | $ | 45,073 | $ | 60,121 | ||||||||||
| Accrued liabilities | 43,241 | 48,316 | ||||||||||||
| Accrued interest | 3,772 | 115 | ||||||||||||
| Current portion of long-term debt | 8,207 | 6,571 | ||||||||||||
| Total current liabilities | 100,293 | 115,123 | ||||||||||||
| Long-term debt, net of current portion | 492,718 | 516,078 | ||||||||||||
| Warrant liability | — | 2,024 | ||||||||||||
| Earn-out liability | 229 | 2,045 | ||||||||||||
| Deferred taxes | 47,730 | 46,540 | ||||||||||||
| Other noncurrent liabilities | 35,131 | 33,218 | ||||||||||||
| Total liabilities | 676,101 | 715,028 | ||||||||||||
| Common stock | 12 | 12 | ||||||||||||
| Additional paid-in capital | 386,739 | 384,873 | ||||||||||||
| Treasury stock, at cost, 707,113 and zero shares held as of September 27, 2026 and December 31, 2025, respectively | (2,000) | — | ||||||||||||
| Accumulated other comprehensive income (loss) | (2,457) | 120 | ||||||||||||
| Retained earnings | 76,570 | 63,920 | ||||||||||||
| Total stockholders' equity | 458,864 | 448,925 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 1,134,965 | $ | 1,163,953 | ||||||||||
HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| For the thirteen weeks ended | For the thirty-nine weeks ended | |||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||||||
| Operating Activities | ||||||||||||||||||||||||||
| Net income (loss) | $ | 7,823 | $ | (806) | $ | 12,650 | $ | 12,874 | ||||||||||||||||||
| Adjustments to reconcile to net cash | 9,367 | 18,641 | 52,688 | 42,490 | ||||||||||||||||||||||
| Changes in operating assets and liabilities | (3,102) | (10,405) | (6,996) | (15,297) | ||||||||||||||||||||||
| Net cash provided by operating activities | 14,088 | 7,430 | 58,342 | 40,067 | ||||||||||||||||||||||
| Investing Activities | ||||||||||||||||||||||||||
| Capital expenditures | (5,294) | (2,145) | (14,934) | (9,953) | ||||||||||||||||||||||
| Acquisition of license agreement | — | (3,570) | (3,570) | (16,660) | ||||||||||||||||||||||
| Business acquisition, net of cash acquired | — | — | (2,776) | — | ||||||||||||||||||||||
| Proceeds from the disposal of assets | 4 | 205 | 9,961 | 205 | ||||||||||||||||||||||
| Net cash (used in) investing activities | (5,290) | (5,510) | (11,319) | (26,408) | ||||||||||||||||||||||
| Financing Activities | ||||||||||||||||||||||||||
| Net change in debt | (26,643) | (15,017) | (28,286) | (18,625) | ||||||||||||||||||||||
| Payments from stock-based award activities | (575) | — | (3,061) | (850) | ||||||||||||||||||||||
| Principal payments on finance lease | (285) | — | (285) | — | ||||||||||||||||||||||
| Treasury stock purchase, at cost | — | — | (2,000) | — | ||||||||||||||||||||||
| Net cash used in financing activities | (27,503) | (15,017) | (33,632) | (19,475) | ||||||||||||||||||||||
| Effect of foreign currency rate fluctuations on cash | (426) | (22) | (733) | 452 | ||||||||||||||||||||||
| Net change in cash and cash equivalents | (19,131) | (13,119) | 12,658 | (5,364) | ||||||||||||||||||||||
| Cash and Cash Equivalents | ||||||||||||||||||||||||||
| Beginning of period | $ | 69,020 | $ | 63,842 | $ | 37,231 | $ | 56,087 | ||||||||||||||||||
| End of period | $ | 49,889 | $ | 50,723 | $ | 49,889 | $ | 50,723 | ||||||||||||||||||
We present certain information with respect to EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Credit Agreement Total Leverage Ratio (the "Leverage Ratio"), Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow as supplemental measures of our operating performance and believe that such non-GAAP financial measures are useful to investors in evaluating our financial performance and in comparing our financial results between periods because they exclude the impact of certain items that we do not consider indicative of our ongoing operating performance. We believe that the presentation of these non-GAAP financial measures enhances the usefulness of our financial information by presenting measures that management uses internally to establish forecasts, budgets, and operational goals to manage and monitor our business. We believe that these non-GAAP financial measures help to depict a more realistic representation of the performance of our underlying business, enabling us to evaluate and plan more effectively for the future.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, the Leverage Ratio, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow are not prepared in accordance with generally accepted accounting principles (“GAAP”) and may be different from non-GAAP and other financial measures used by other companies. These measures should not be considered as measures of financial performance under GAAP, and the items excluded from or included in these metrics are significant components in understanding and assessing our financial performance. These metrics should not be considered as alternatives to net income, gross profit, net cash provided by operating activities, or any other performance measures, as applicable, derived in accordance with GAAP.
We define EBITDA as earnings before depreciation, amortization of intangible assets, interest expense, and income tax expense. We define Adjusted EBITDA as EBITDA adjusted to exclude, to the extent applicable, restructuring costs, which includes operational restructuring and integration activities, termination related benefits, facilities relocation, and executive transition costs; changes in the fair value of the warrant liability; changes in the fair value of the earn-out liability; equity-based compensation expense; gain or loss on the early extinguishment of debt; notable items that we do not believe are reflective of our underlying operating performance, including litigation settlements and certain costs incurred for advisory services related to identifying performance initiatives; and other expenses or gains, which includes gains or losses from disposal of fixed assets, franchise taxes, and gains or losses from foreign currency transactions. In addition, beginning with the quarter ended June 28, 2026, we have excluded from Adjusted EBITDA as a notable item any tariff refund income received in the quarter, as the refunds are non-recurring in nature for tariff costs incurred in the past and are not reflective of our ongoing performance. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales.
HOLLEY INC. and SUBSIDIARIES
USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(In thousands)
(Unaudited)
| For the thirteen weeks ended | For the thirty-nine weeks ended | |||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||||||
| Net Income (Loss) | $ | 7,823 | $ | (806) | $ | 12,650 | $ | 12,874 | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Interest expense, net | 9,610 | 11,259 | 27,729 | 40,341 | ||||||||||||||||||||||
| Income tax expense | 2,625 | 1,269 | 3,304 | 5,848 | ||||||||||||||||||||||
| Depreciation | 2,576 | 2,669 | 7,750 | 7,183 | ||||||||||||||||||||||
| Amortization | 3,182 | 3,456 | 10,026 | 10,338 | ||||||||||||||||||||||
| EBITDA | 25,816 | 17,847 | 61,459 | 76,584 | ||||||||||||||||||||||
| Restructuring costs | 2,807 | 1,360 | 4,522 | 2,178 | ||||||||||||||||||||||
| Change in fair value of warrant liability | (444) | 3,019 | (2,024) | 2,939 | ||||||||||||||||||||||
| Change in fair value of earn-out liability | (44) | 1,126 | (1,816) | 722 | ||||||||||||||||||||||
| Loss on sale of assets | 335 | — | 28,559 | — | ||||||||||||||||||||||
| Equity-based compensation expense | 1,631 | 2,322 | 4,927 | 5,225 | ||||||||||||||||||||||
| Notable items | (589) | 457 | 4,300 | 1,941 | ||||||||||||||||||||||
| Other operating (income) expense | (86) | 975 | (9,427) | 1,232 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 29,426 | $ | 27,106 | $ | 90,500 | $ | 90,821 | ||||||||||||||||||
| Net Sales | $ | 141,558 | $ | 138,373 | $ | 460,895 | $ | 458,078 | ||||||||||||||||||
| Net income (loss) margin | 5.5 | % | (0.6 | %) | 2.7 | % | 2.8 | % | ||||||||||||||||||
| Adjusted EBITDA Margin | 20.8 | % | 19.6 | % | 19.6 | % | 19.8 | % | ||||||||||||||||||
We define the Leverage Ratio as Net Debt divided by our Credit Agreement EBITDA for the trailing twelve-month ("TTM") period, as defined under our Credit Agreement entered into in November 2021, as amended, which is used in calculating covenant compliance.
| TTM September 27, 2026 | December 31, 2025 | |||||||||||||
| Net Income | $ | 18,951 | $ | 19,175 | ||||||||||
| Adjustments: | ||||||||||||||
| Interest expense, net | 39,221 | 51,833 | ||||||||||||
| Income tax expense | 6,914 | 9,458 | ||||||||||||
| Depreciation | 10,271 | 9,704 | ||||||||||||
| Amortization | 13,466 | 13,778 | ||||||||||||
| EBITDA | 88,823 | 103,948 | ||||||||||||
| Change in fair value of warrant liability | (3,751) | 1,211 | ||||||||||||
| Change in fair value of earn-out liability | (1,641) | 897 | ||||||||||||
| Equity-based compensation expense | 7,865 | 8,163 | ||||||||||||
| Loss on sale of assets | 28,594 | — | ||||||||||||
| Gain on early extinguishment of debt | (93) | (93) | ||||||||||||
| Restructuring costs | 5,247 | 2,903 | ||||||||||||
| Notable items | 7,238 | 4,882 | ||||||||||||
| Other (income) expense | (8,585) | 2,110 | ||||||||||||
| Adjusted EBITDA | 123,697 | 124,021 | ||||||||||||
| Additional permitted charges | 6,664 | 7,265 | ||||||||||||
| Adjusted EBITDA per Credit Agreement | $ | 130,361 | $ | 131,286 | ||||||||||
| Total debt | $ | 506,207 | $ | 529,557 | ||||||||||
| Less: permitted cash and cash equivalents | 49,889 | 37,231 | ||||||||||||
| Net indebtedness per Credit Agreement | $ | 456,318 | $ | 492,326 | ||||||||||
| Credit Agreement Total Leverage Ratio | 3.50 x | 3.75 x | ||||||||||||
We define Adjusted Net Income as earnings excluding the effect of changes in the fair value of the warrant liability, changes in the fair value of the earn-out liability, loss on sale of assets, and gain or loss on the early extinguishment of debt. We define Adjusted Diluted EPS as Adjusted Net Income on a per share basis. Management uses these measures to focus on on-going operations and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present consolidated operating results. We believe that using this information, along with net income and net income per diluted share, provides for a more complete analysis of the results of operations.
| For the thirteen weeks ended | For the thirty-nine weeks ended | |||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||||||
| Net Income (Loss) | $ | 7,823 | $ | (806) | $ | 12,650 | $ | 12,874 | ||||||||||||||||||
| Special items: | ||||||||||||||||||||||||||
| Adjust for: change in fair value of warrant liability | (444) | 3,019 | (2,024) | 2,939 | ||||||||||||||||||||||
| Adjust for: change in fair value of earn-out liability | (44) | 1,126 | (1,816) | 722 | ||||||||||||||||||||||
| Adjust for: loss on sale of assets | 335 | — | 28,559 | — | ||||||||||||||||||||||
| Adjusted Net Income | $ | 7,670 | $ | 3,339 | $ | 37,369 | $ | 16,535 | ||||||||||||||||||
| For the thirteen weeks ended | For the thirty-nine weeks ended | |||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||||||
| Net (Loss) Income per Diluted Share | $ | 0.06 | $ | (0.01) | $ | 0.10 | $ | 0.11 | ||||||||||||||||||
| Special items: | ||||||||||||||||||||||||||
| Adjust for: change in fair value of warrant liability | — | 0.03 | (0.02) | 0.02 | ||||||||||||||||||||||
| Adjust for: change in fair value of earn-out liability | — | 0.01 | (0.01) | 0.01 | ||||||||||||||||||||||
| Adjust for: loss on sale of assets | — | — | 0.24 | — | ||||||||||||||||||||||
| Adjusted Diluted EPS | $ | 0.06 | $ | 0.03 | $ | 0.31 | $ | 0.14 | ||||||||||||||||||
We define Free Cash Flow as net cash provided by operating activities minus cash payments for capital expenditures, net of fixed asset dispositions not related to brand divestitures. Management believes providing Free Cash Flow is useful for investors to understand our performance and results of cash generation after making capital investments required to support ongoing business operations.
| For the thirteen weeks ended | For the thirty-nine weeks ended | |||||||||||||||||||||||||
| September 27, 2026 | September 28, 2025 | September 27, 2026 | September 28, 2025 | |||||||||||||||||||||||
| Net Cash Provided by Operating Activities | $ | 14,088 | $ | 7,430 | $ | 58,342 | $ | 40,067 | ||||||||||||||||||
| Capital expenditures, net of dispositions | (5,294) | (2,145) | (14,934) | (9,953) | ||||||||||||||||||||||
| Proceeds from the disposal of fixed assets | 4 | 205 | 4 | 205 | ||||||||||||||||||||||
| Free Cash Flow | $ | 8,798 | $ | 5,490 | $ | 43,412 | $ | 30,319 | ||||||||||||||||||