Holley Performance Brands Reports Third Quarter 2025 Results

Holley Performance Brands, a leader in automotive aftermarket performance solutions, has released its financial results for the third quarter of 2025. The company has reported its third consecutive quarter of core net business growth, with leverage now below 4x, the lowest level since 2022.

Financial Highlights

For the third quarter ended September 28, 2025, Holley Performance Brands reported:

• Net Sales increased by 3.2% to $138.4 million compared to $134.0 million in the same period last year.
• Core business net sales grew by 6.4% compared to the third quarter of 2024, excluding non-core business net sales 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 was $3.3 million compared to $(0.5) million last year.
• Adjusted EBITDA was $27.1 million compared to $22.1 million last year.
• Free Cash Flow was $5.5 million compared to $(2.1) million last year.

Business and Operational Highlights

Holley Performance Brands achieved core business net sales growth for the third consecutive quarter, with a 6.4% increase compared to the third quarter of 2024. The company expanded growth across 17 brands and all divisions within the quarter. Additionally, B2B partners saw approximately 7.3% growth in the channel for the third quarter of 2025 compared to the same period last year. Direct-to-consumer (DTC) orders grew 4.2%, marking 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.

Strategic Initiatives and Corporate Developments

Holley Performance Brands has made significant progress in its financial strategy, generating $5.5 million of Free Cash Flow in the third quarter and prepaying an additional $15 million of debt. Subsequent to the quarter close, the company prepaid an additional $10 million, bringing the total repayment to $100 million since September 2023. This has helped lower the leverage ratio to 3.9x at the end of Q3, surpassing the 4.0x target set for year-end.

Management's Perspective

Matthew Stevenson, President and CEO of Holley, commented, "We delivered another strong quarter in 2025, underscored by sustained momentum across all our categories. 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."

Future Outlook

For the year ending December 31, 2025, Holley Performance Brands has refined its full-year guidance, inclusive of the expected net impact of tariffs:

• Net Sales: $590 - $605 million, representing a 2.5% to 5.1% year-over-year increase compared to 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.

Original SEC Filing: Holley Inc. [ HLLY ] - 8-K - Nov. 07, 2025