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Holley Inc
Holley Reports Fourth Quarter and Full Year 2025 Results
Business
Mar 4 2026
22 min read

Holley Reports Fourth Quarter and Full Year 2025 Results

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FOURTH QUARTER NET SALES YEAR-OVER-YEAR GROWTH OF 10.9%

FOURTH QUARTER NET INCOME OF $6.3 MILLION UP $44.1 MILLION YEAR-OVER-YEAR

FOURTH QUARTER ADJUSTED EBITDA OF $33.2 MILLION UP $4.1 MILLION YEAR-OVER-YEAR

Exceeded top‑line expectations in 2025, positioning Holley for continued momentum in 2026.

BOWLING GREEN, Ky., March 04, 2026 (GLOBE NEWSWIRE) -- Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its fourth quarter and full year ended December 31, 2025.

Fourth Quarter Highlights vs. Prior Year Period

  • Net Sales increased 10.9% to $155.4 million compared to $140.1 million last year

  • Core business net sales1 for the fourth quarter of 2025 grew by 13.5% compared to the fourth quarter of 2024 after excluding non-core business net sales1 of approximately $3.2 million for the fourth quarter of 2024

  • Net Income was $6.3 million, or $0.05 per diluted share, compared to a Net Loss of $(37.8) million, or $(0.32) per diluted share, last year

  • Net Cash Provided by Operating Activities was $8.5 million compared to $4.1 million last year

  • Adjusted Net Income2 was $4.6 million, or $0.04 per diluted share compared to $12.6 million, or $0.11 per diluted share, last year

  • Adjusted EBITDA2 was $33.2 million compared to $29.1 million last year

  • Free Cash Flow2 was $3.9 million compared to $1.8 million last year

Full Year 2025 Highlights vs. Prior Year Period

  • Net Sales increased 1.9% to $613.5 million compared to $602.2 million last year

  • Core business net sales1 for the full year 2025 grew by 6.6% compared to the full year 2024 after excluding non-core business net sales1 of approximately $26.8 million for full year 2024

  • Net Income was $19.2 million, or $0.16 per diluted share, compared to a Net Loss of $(23.2) million, or $(0.20) per diluted share, last year

  • Net Cash Provided by Operating Activities was $48.6 million compared to $46.9 million last year

  • Adjusted Net Income2 was $21.2 million, or $0.18 per diluted share, compared to $24.8 million, or $0.20 per diluted share, last year

  • Adjusted EBITDA2 was $124.0 million compared to $110.5 million last year

  • Free Cash Flow2 was $34.2 million compared to $41.8 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 $2.9 million for the fourth quarter of 2024, and strategic product rationalization sales were $0.3 million for the fourth quarter of 2024.

2

See “Use and Reconciliation of Non-GAAP Financial Measures” below.

 

 

“We delivered a strong year in 2025, achieving the results we set out to accomplish through the execution of our strategic initiatives,” said Matthew Stevenson, President and Chief Executive Officer of Holley. “Our focus on operational rigor drove meaningful performance improvements and measurable cost savings across the organization. We remain committed to advancing the priorities within our strategic framework, reflected in the continued growth of our B2B and DTC channels, successful new product launches across divisions, and further expansion of our footprint.”

Stevenson continued, "Our financial discipline remained a cornerstone of our performance in 2025. For the full year, we generated roughly $34 million of Free Cash Flow. We also continued to strengthen our balance sheet, ending the year with a leverage ratio of 3.75x, well below the 4.0x target we established for 2025 and marking our strongest leverage position in several years."

"2025 has been an important year of progress for Holley, and we are entering 2026 with momentum and a balanced outlook. While we expect continued growth next year, we remain sharply focused on advancing our strategic initiatives, driving operational efficiency, and strengthening our financial position. Our strategic framework will continue to guide our actions as we build on this year’s success and position Holley for sustained long‑term performance."

Strategic Business Highlights

  • Delivered the first annual net sales growth and >20% Adjusted EBITDA margin since 2021.

  • Achieved core business net sales growth for the fourth quarter of 2025 of 13.5% compared to the fourth quarter of 2024. Fourth consecutive quarter of core business net sales growth.

  • Expanded growth across 22 brands and all divisions within the quarter.

  • Strong Q4 results across B2B, achieving ~10.8% growth in the channel, and DTC, growing 7.0% year-over-year.

  • Strategic framework delivered meaningful revenue growth and ~$20M cost savings for the year.

  • Prepaid $10M of debt in the fourth quarter of 2025 bringing total debt prepayment of $100 million since September 2023; Achieved Net debt to EBITDA leverage of 3.75x at year-end.

Outlook

For the year ended December 31, 2026, we are introducing full-year guidance, inclusive of the expected net impact of tariffs:

Metric

Full Year 2026 Outlook

Net Sales

$625 - $655 million

Adjusted EBITDA*

$127 - $137 million

Capital Expenditures

$15 - $20 million

Depreciation and Amortization Expense

$24 - $26 million

Interest Expense (excluding collar revaluation)

$42 - $47 million


* 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-ended 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 13757916.

For those unable to participate, a telephone replay recording will be available until Wednesday, March 11, 2026. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13757916. 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, 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 Kozlowski
Solebury Strategic Communications
203-428-3324
holley@soleburystrat.com

Media Relations Contacts:
Nathan Espinosa/Patrick Curtin
Kahn Media
818-881-5246
Holley@KahnMedia.com

[Financial Tables to Follow]

 

HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)
(Unaudited)

 

 

 

For the thirteen weeks ended

 

For the year ended

 

 

December 31,

 

December 31,

 

Variance

 

Variance

 

December 31,

 

December 31,

 

Variance

 

Variance

 

 

 

2025

 

 

 

2024

 

 

($)

 

(%)

 

 

2025

 

 

 

2024

 

 

($)

 

(%)

Net Sales

 

$

155,436

 

 

$

140,054

 

 

$

15,382

 

 

10.9

%

 

$

613,514

 

 

$

602,224

 

 

$

11,290

 

 

1.9

%

Cost of Goods Sold

 

 

82,686

 

 

 

76,168

 

 

 

6,518

 

 

8.6

%

 

 

347,279

 

 

 

363,680

 

 

 

(16,401

)

 

-4.5

%

Gross Profit

 

 

72,750

 

 

 

63,886

 

 

 

8,864

 

 

13.9

%

 

 

266,235

 

 

 

238,544

 

 

 

27,691

 

 

11.6

%

Selling, General, and Administrative

 

 

43,013

 

 

 

34,474

 

 

 

8,539

 

 

24.8

%

 

 

146,132

 

 

 

132,149

 

 

 

13,983

 

 

10.6

%

Research and Development Costs

 

 

4,937

 

 

 

4,967

 

 

 

(30

)

 

-0.6

%

 

 

18,831

 

 

 

18,710

 

 

 

121

 

 

0.6

%

Amortization of Intangible Assets

 

 

3,440

 

 

 

3,577

 

 

 

(137

)

 

-3.8

%

 

 

13,778

 

 

 

13,884

 

 

 

(106

)

 

-0.8

%

Impairment of Indefinite-Lived Intangible Assets

 

 

-

 

 

 

7,695

 

 

 

(7,695

)

 

-100.0

%

 

 

-

 

 

 

7,695

 

 

 

(7,695

)

 

-100.0

%

Impairment of Goodwill

 

 

-

 

 

 

40,906

 

 

 

(40,906

)

 

-100.0

%

 

 

-

 

 

 

40,906

 

 

 

(40,906

)

 

-100.0

%

Restructuring Costs

 

 

725

 

 

 

-

 

 

 

725

 

 

100.0

%

 

 

2,903

 

 

 

1,566

 

 

 

1,337

 

 

85.4

%

Loss on sale of assets

 

 

-

 

 

 

1,729

 

 

 

(1,729

)

 

-100.0

%

 

 

-

 

 

 

9,234

 

 

 

(9,234

)

 

-100.0

%

Other Operating Expense (Income)

 

 

878

 

 

 

(481

)

 

 

1,359

 

 

-282.5

%

 

 

2,110

 

 

 

(268

)

 

 

2,378

 

 

-887.3

%

Operating Expense

 

 

52,993

 

 

 

92,867

 

 

 

(39,874

)

 

-42.9

%

 

 

183,754

 

 

 

223,876

 

 

 

(40,122

)

 

-17.9

%

Operating Income (Expense)

 

 

19,757

 

 

 

(28,981

)

 

 

48,738

 

 

-168.2

%

 

 

82,481

 

 

 

14,668

 

 

 

67,813

 

 

462.3

%

Change in Fair Value of Warrant Liability

 

 

(1,728

)

 

 

-

 

 

 

(1,728

)

 

-100.0

%

 

 

1,211

 

 

 

(7,570

)

 

 

8,781

 

 

-116.0

%

Change in Fair Value of Earn-Out Liability

 

 

175

 

 

 

8

 

 

 

167

 

 

2087.5

%

 

 

897

 

 

 

(2,333

)

 

 

3,230

 

 

-138.4

%

Loss (Gain) on Early Extinguishment of Debt

 

 

(93

)

 

 

-

 

 

 

(93

)

 

100.0

%

 

 

(93

)

 

 

141

 

 

 

(234

)

 

-166.0

%

Interest Expense, Net

 

 

11,492

 

 

 

11,498

 

 

 

(6

)

 

-0.1

%

 

 

51,833

 

 

 

50,690

 

 

 

1,143

 

 

2.3

%

Non-Operating Expense

 

 

9,846

 

 

 

11,506

 

 

 

(1,660

)

 

-14.4

%

 

 

53,848

 

 

 

40,928

 

 

 

12,920

 

 

31.6

%

Income (Loss) Before Income Taxes

 

 

9,911

 

 

 

(40,487

)

 

 

50,398

 

 

-124.5

%

 

 

28,633

 

 

 

(26,260

)

 

 

54,893

 

 

-209.0

%

Income Tax Expense (Benefit)

 

 

3,610

 

 

 

(2,705

)

 

 

6,315

 

 

-233.5

%

 

 

9,458

 

 

 

(3,025

)

 

 

12,483

 

 

-412.7

%

Net Income (Loss)

 

$

6,301

 

 

$

(37,782

)

 

$

44,083

 

 

-116.7

%

 

$

19,175

 

 

$

(23,235

)

 

$

42,410

 

 

-182.5

%

Comprehensive Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign Currency Translation Adjustment

 

 

(54

)

 

 

(696

)

 

 

642

 

 

-92.2

%

 

 

1,282

 

 

 

(452

)

 

 

1,734

 

 

-383.6

%

Total Comprehensive Income (Loss)

 

$

6,247

 

 

$

(38,478

)

 

$

44,725

 

 

-116.2

%

 

$

20,457

 

 

$

(23,687

)

 

$

44,144

 

 

-186.4

%

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Net Income (Loss) per Share

 

$

0.05

 

 

$

(0.32

)

 

$

0.37

 

 

-116.6

%

 

$

0.16

 

 

$

(0.20

)

 

$

0.36

 

 

-182.0

%

Diluted Net Income (Loss) per Share

 

$

0.05

 

 

$

(0.32

)

 

$

0.37

 

 

-116.3

%

 

$

0.16

 

 

$

(0.20

)

 

$

0.36

 

 

-181.4

%

Weighted Average Common Shares Outstanding - Basic

 

 

119,424

 

 

 

118,724

 

 

 

700

 

 

0.6

%

 

 

119,213

 

 

 

118,442

 

 

 

772

 

 

0.7

%

Weighted Average Common Shares Outstanding - Diluted

 

 

121,526

 

 

 

118,724

 

 

 

2,802

 

 

2.4

%

 

 

120,074

 

 

 

118,442

 

 

 

1,633

 

 

1.4

%

nm - not meaningful

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)

 

 

 

As of

 

 

December 31,
2025

 

December 31,
2024

Assets

 

 

 

 

Cash and cash equivalents

 

$

37,231

 

$

56,087

 

Accounts receivable

 

 

57,895

 

 

36,123

 

Inventory

 

 

205,661

 

 

192,523

 

Prepaids and other current assets

 

 

15,374

 

 

12,614

 

Total current assets

 

 

316,161

 

 

297,347

 

Property, plant and equipment, net

 

 

45,127

 

 

40,983

 

Goodwill

 

 

372,340

 

 

372,340

 

Other intangibles, net

 

 

396,910

 

 

386,676

 

Other noncurrent assets

 

 

33,415

 

 

35,974

 

Total assets

 

$

1,163,953

 

$

1,133,320

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

Accounts payable

 

$

60,121

 

$

44,781

 

Accrued liabilities

 

 

48,316

 

 

43,190

 

Accrued interest

 

 

115

 

 

 

Current portion of long-term debt

 

 

6,571

 

 

7,201

 

Total current liabilities

 

 

115,123

 

 

95,172

 

Long-term debt, net of current portion

 

 

516,078

 

 

545,385

 

Warrant liability

 

 

2,024

 

 

813

 

Earn-out liability

 

 

2,045

 

 

1,148

 

Deferred taxes

 

 

46,540

 

 

37,391

 

Other noncurrent liabilities

 

 

33,218

 

 

32,259

 

Total liabilities

 

 

715,028

 

 

712,168

 

 

 

 

 

 

Common stock

 

 

12

 

 

12

 

Additional paid-in capital

 

 

384,873

 

 

377,557

 

Accumulated other comprehensive gain (loss)

 

 

120

 

 

(1,162

)

Retained earnings

 

 

63,920

 

 

44,745

 

Total stockholders’ equity

 

 

448,925

 

 

421,152

 

Total liabilities and stockholders’ equity

 

$

1,163,953

 

$

1,133,320

 

 

 

 

 

 

 

 

 


 

HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 

 

 

For the thirteen weeks ended

 

For the year ended

 

 

December 31,
2025

 

December 31,
2024

 

December 31,
2025

 

December 31,
2024

Operating Activities

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

6,301

 

 

$

(37,782

)

 

$

19,175

 

 

$

(23,235

)

Adjustments to Reconcile to Net Cash

 

 

16,140

 

 

 

52,413

 

 

 

58,630

 

 

 

79,245

 

Changes in Operating Assets and Liabilities

 

 

(13,910

)

 

 

(10,505

)

 

 

(29,207

)

 

 

(9,111

)

Net Cash Provided by Operating Activities

 

 

8,531

 

 

 

4,126

 

 

 

48,598

 

 

 

46,899

 

 

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

 

 

Capital Expenditures, Net of Dispositions

 

 

(8,199

)

 

 

4,748

 

 

 

(34,607

)

 

 

2,021

 

Net Cash Provided by (Used in) Investing Activities

 

 

(8,199

)

 

 

4,748

 

 

 

(34,607

)

 

 

2,021

 

 

 

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

 

 

Net Change in Debt

 

 

(13,273

)

 

 

(3,612

)

 

 

(32,108

)

 

 

(32,444

)

Deferred Financing Fees

 

 

(133

)

 

 

(679

)

 

 

(343

)

 

 

(679

)

Payments from Stock-Based Award Activities

 

 

3

 

 

 

 

 

 

(847

)

 

 

(1,482

)

Net Cash Used in Financing Activities

 

 

(13,137

)

 

 

(4,291

)

 

 

(32,612

)

 

 

(34,605

)

 

 

 

 

 

 

 

 

 

Effect of Foreign Currency Rate Fluctuations on Cash

 

 

(687

)

 

 

753

 

 

 

(235

)

 

 

691

 

 

 

 

 

 

 

 

 

 

Net Change in Cash and Cash Equivalents

 

 

(13,492

)

 

 

5,336

 

 

 

(18,856

)

 

 

15,006

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents

 

 

 

 

 

 

 

 

Beginning of Period

 

 

50,723

 

 

 

50,751

 

 

 

56,087

 

 

 

41,081

 

End of Period

 

$

37,231

 

 

$

56,087

 

 

$

37,231

 

 

$

56,087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We present certain information with respect to EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Bank-adjusted EBITDA Leverage Ratio, Adjusted Gross Profit, Adjusted Gross Margin, 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, Bank-adjusted EBITDA Leverage Ratio, Adjusted Gross Profit, Adjusted Gross Margin, 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. 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 year ended

 

 

December 31,
2025

 

December 31,
2024

 

December 31,
2025

 

December 31,
2024

Net Income (Loss)

 

$

6,301

 

 

$

(37,782

)

 

$

19,175

 

 

$

(23,235

)

Adjustments:

 

 

 

 

 

 

 

 

Interest Expense, Net

 

 

11,492

 

 

 

11,498

 

 

 

51,833

 

 

 

50,690

 

Income Tax Expense (Benefit)

 

 

3,610

 

 

 

(2,705

)

 

 

9,458

 

 

 

(3,025

)

Depreciation

 

 

2,521

 

 

 

3,187

 

 

 

9,704

 

 

 

10,551

 

Amortization

 

 

3,440

 

 

 

3,577

 

 

 

13,778

 

 

 

13,884

 

EBITDA

 

 

27,364

 

 

 

(22,225

)

 

 

103,948

 

 

 

48,865

 

Restructuring Costs

 

 

725

 

 

 

-

 

 

 

2,903

 

 

 

1,566

 

Change in Fair Value of Warrant Liability

 

 

(1,728

)

 

 

-

 

 

 

1,211

 

 

 

(7,570

)

Change in Fair Value of Earn-Out Liability

 

 

175

 

 

 

8

 

 

 

897

 

 

 

(2,333

)

Impairment of Indefinite-lived intangible assets

 

 

-

 

 

 

7,695

 

 

 

-

 

 

 

7,695

 

Impairment of Goodwill

 

 

-

 

 

 

40,906

 

 

 

-

 

 

 

40,906

 

Loss on Sale of Assets

 

 

-

 

 

 

1,729

 

 

 

-

 

 

 

9,234

 

Equity-Based Compensation Expense

 

 

2,938

 

 

 

887

 

 

 

8,163

 

 

 

5,170

 

Loss (Gain) on Early Extinguishment of Debt

 

 

(93

)

 

 

-

 

 

 

(93

)

 

 

141

 

Notable Items

 

 

2,941

 

 

 

621

 

 

 

4,882

 

 

 

7,100

 

Other Expense (Income)

 

 

878

 

 

 

(481

)

 

 

2,110

 

 

 

(268

)

Adjusted EBITDA

 

$

33,200

 

 

$

29,140

 

 

$

124,021

 

 

$

110,506

 

Net Sales

 

$

155,436

 

 

$

140,054

 

 

$

613,514

 

 

$

602,224

 

Net Income Margin

 

 

4.1

%

 

 

(27.0

%)

 

 

3.1

%

 

 

(3.9

%)

Adjusted EBITDA Margin

 

 

21.4

%

 

 

20.8

%

 

 

20.2

%

 

 

18.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We define the Bank-adjusted EBITDA Leverage Ratio as Net Debt divided by our Bank-adjusted 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 December 31,
2025

 

TTM December 31,
2024

Net Income (Loss)

 

$

19,175

 

 

$

(23,235

)

Adjustments:

 

 

 

 

Interest Expense, Net

 

 

51,833

 

 

 

50,690

 

Income Tax Expense (Benefit)

 

 

9,458

 

 

 

(3,025

)

Depreciation

 

 

9,704

 

 

 

10,551

 

Amortization

 

 

13,778

 

 

 

13,884

 

EBITDA

 

 

103,948

 

 

 

48,865

 

Restructuring Costs

 

 

2,903

 

 

 

1,566

 

Change in Fair Value of Warrant Liability

 

 

1,211

 

 

 

(7,570

)

Change in Fair Value of Earn-Out Liability

 

 

897

 

 

 

(2,333

)

Equity-Based Compensation Expense

 

 

8,163

 

 

 

5,170

 

Impairment of indefinite-lived intangible assets

 

 

 

 

 

7,695

 

Impairment of goodwill

 

 

 

 

 

40,906

 

Loss on Sale of Assets

 

 

 

 

 

9,234

 

Loss (gain) on Early Extinguishment of Debt

 

 

(93

)

 

 

141

 

Notable Items

 

 

4,882

 

 

 

7,100

 

Other Expense (Income)

 

 

2,110

 

 

 

(268

)

Adjusted EBITDA

 

 

124,021

 

 

 

110,506

 

Additional Permitted Charges

 

 

7,265

 

 

 

12,261

 

Adjusted EBITDA per Credit Agreement

 

$

131,286

 

 

$

122,767

 

Total Debt

 

$

529,557

 

 

$

561,840

 

Less: Permitted Cash and Cash Equivalents

 

 

37,231

 

 

 

50,000

 

Net Indebtedness per Credit Agreement

 

$

492,326

 

 

$

511,840

 

Bank-adjusted EBITDA Leverage Ratio

 

3.75 x

 

4.17 x

 

 

 

 

 

We define Adjusted Net Income as earnings excluding the after-tax effect of changes in the fair value of the warrant liability, changes in the fair value of the earn-out liability, impairment of indefinite-lived intangibles assets, impairment of goodwill, 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 year ended

 

 

December 31,
2025

 

December 31,
2024

 

December 31,
2025

 

December 31,
2024

Net Income (Loss)

 

$

6,301

 

 

$

(37,782

)

 

$

19,175

 

 

$

(23,235

)

Adjustments:

 

 

 

 

 

 

 

 

Change in fair value of warrant liability

 

 

(1,728

)

 

 

 

 

 

1,211

 

 

 

(7,570

)

Change in fair value of earn-out liability

 

 

175

 

 

 

8

 

 

 

897

 

 

 

(2,333

)

Impairment of Indefinite-lived intangible assets

 

 

 

 

 

7,695

 

 

 

 

 

 

7,695

 

Impairment of Goodwill

 

 

 

 

 

40,906

 

 

 

 

 

 

40,906

 

Loss on Sale of Assets

 

 

 

 

 

1,729

 

 

 

 

 

 

9,234

 

Loss (gain) on Early Extinguishment of Debt

 

 

(93

)

 

 

 

 

 

(93

)

 

 

141

 

Adjusted Net Income

 

$

4,655

 

 

$

12,556

 

 

$

21,190

 

 

$

24,838

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

For the thirteen weeks ended

 

For the year ended

 

 

December 31,
2025

 

December 31,
2024

 

December 31,
2025

 

 

December 31,
2024

Net Income (Loss) per Diluted Share

 

$

0.05

 

 

$

(0.32

)

 

$

0.16

 

 

$

(0.20

)

Adjustments:

 

 

 

 

 

 

 

 

 

Change in fair value of warrant liability

 

 

(0.01

)

 

 

-

 

 

 

0.01

 

 

 

(0.06

)

Change in fair value of earn-out liability

 

 

-

 

 

 

-

 

 

 

0.01

 

 

 

(0.03

)

Impairment of indefinite-lived intangible assets

 

 

-

 

 

 

0.07

 

 

 

-

 

 

 

0.06

 

Impairment of goodwill

 

 

-

 

 

 

0.35

 

 

 

-

 

 

 

0.35

 

Loss on sale of assets

 

 

-

 

 

 

0.01

 

 

 

-

 

 

 

0.08

 

Adjusted Diluted EPS

 

$

0.04

 

 

$

0.11

 

 

$

0.18

 

 

$

0.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

We define Free Cash Flow as net cash provided by operating activities minus cash payments for capital expenditures, net of dispositions. 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 year ended

 

 

December 31,
2025

 

December 31,
2024

 

December 31,
2025

 

December 31,
2024

Net Cash Provided by Operating Activities

 

$

8,531

 

 

$

4,126

 

 

$

48,598

 

 

$

46,899

 

Capital expenditures

 

 

(4,746

)

 

 

(2,432

)

 

 

(14,699

)

 

 

(6,804

)

Proceeds from the disposal of fixed assets

 

 

117

 

 

 

81

 

 

 

322

 

 

 

1,726

 

Free Cash Flow

 

$

3,902

 

 

$

1,775

 

 

$

34,221

 

 

$

41,821