Holley Performance Brands announced its third consecutive quarter of core business growth, with net sales up 3.2% to $138.4 million. The company’s net loss was $(0.8) million, and adjusted EBITDA reached $27.1 million. Free cash flow increased to $5.5 million, helping lower leverage to below 4x, the lowest level since 2022.
President and CEO Matthew Stevenson highlighted the success of Holley’s strategic framework, driving sustained momentum and strong results in 2025. Core business net sales grew for the third consecutive quarter, fueled by volume gains of more than 4%. The company’s disciplined financial approach led to $5.5 million in free cash flow and reduced leverage to 3.9x.
Holley achieved strategic business highlights, including core business net sales growth of 6.4% and expansion across 17 brands and divisions. Revenue of $27.8 million from key initiatives in the third quarter showcased the effectiveness of the strategic framework. The company saw growth in B2B partners and DTC orders, as well as success with product innovation and pricing initiatives.
Looking ahead, Holley revised its full-year 2025 guidance, expecting net sales of $590 – $605 million and adjusted EBITDA of $120 – $127 million. The company continues to focus on executing its strategic framework to deliver strong results over the long term. Conference call and webcast are available for further discussion on the financial results and outlook. Holley Performance Brands, a leader in high-performance automotive products, invites investors to access financial information on its website. The company’s strategic focus on four consumer vertical groupings ensures a wide-ranging impact in the automotive aftermarket industry. Holley emphasizes innovation and growth through acquisitions to enhance the enthusiast experience. For more information, visit their website. Holley Inc. and its subsidiaries reported a 3.2% increase in net sales for the thirteen weeks ending September 28, 2025, compared to the same period in 2024. Gross profit increased by 14.4%, contributing to a significant rise in operating income by 185.2%.
The company’s balance sheet as of September 28, 2025, showed total assets of $1,165,114, with current assets totaling $316,057. Liabilities stood at $725,377, with stockholders’ equity at $439,737. The company reported a positive cash flow from operating activities and a decrease in cash and cash equivalents.
Holley Inc. uses non-GAAP financial measures like EBITDA, Adjusted EBITDA, and Adjusted Gross Profit to evaluate its operating performance. These metrics help management forecast, budget, and set operational goals. Adjusted EBITDA Margin for the company was reported at 19.6% for the thirteen weeks ending September 28, 2025.
The Bank-adjusted EBITDA Leverage Ratio, a key metric for covenant compliance, was reported at 3.91x for the trailing twelve-month period ending September 28, 2025. This ratio is calculated by dividing Net Debt by Bank-adjusted EBITDA, as defined under the Credit Agreement, and helps assess the company’s financial health and debt levels. In the third quarter of 2025, the company reported a net income of $(806) million, compared to $(6,288) million in the same period in 2024. Adjusted net income for the quarter was $3,339 million, a significant improvement from a loss of $(458) million in 2024.
For the same period, the company reported a net income per diluted share of $(0.01), compared to $(0.05) in 2024. Adjusted diluted EPS for the quarter was $0.03, a positive turnaround from $(0.01) in the prior year.
Free Cash Flow for the third quarter of 2025 was $5,490 million, a substantial increase from $(2,059) million in 2024. This figure is calculated as net cash provided by operating activities minus capital expenditures, net of dispositions, providing insight into the company’s cash generation after making necessary investments.
Read more at GlobeNewswire: Holley Reports Third Quarter 2025 Results