Holley Reports Second Quarter 2026 Results

DOUBLE-DIGIT CORE GROWTH IN THREE OF FOUR DIVISIONS

RETURN TO NET SALES GROWTH REFLECTS STRENGTH ACROSS THE BUSINESS

LEVERAGE RATIO LOWEST LEVEL IN THE LAST FOUR YEARS

  

Advancing Portfolio Rebalancing Initiative to Enhance Focus, Simplify Operations, and Support Second-Half 2026 Performance

NASHVILLE, Tenn., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its second quarter ended June 28, 2026.

Second Quarter Highlights vs. Prior Year Period

• Net Sales grew 3.2% to $172.0 million compared to $166.7 million last year
  • Core business net sales1 grew by 4.9% after excluding portfolio divestitures and portfolio rebalancing initiative.
• Net Loss was $(2.4) million, or $(0.02) per diluted share, compared to Net Income of $10.9 million, or $0.09 per diluted share, last year
  • Includes a $28.3 million loss on the sale of non-core assets related to the Company's portfolio rebalancing initiative.
• Net Cash Provided by Operating Activities was $47.1 million compared to $40.5 million last year
• Adjusted Net Income2 was $24.0 million compared to $10.6 million last year
• Adjusted EBITDA2 was $33.8 million compared to $36.4 million last year
• Adjusted EBITDA margin2 was 19.6% compared to 21.9% last year
• Free Cash Flow2 was $40.9 million compared to $35.7 million last year

1 Core business net sales excludes sales of divested businesses and the portfolio rebalancing initiative.
2 See “Use and Reconciliation of Non-GAAP Financial Measures” below.

“Our second quarter results reflect positive core growth and continued execution against the strategic priorities we outlined earlier this year, with three of our four business segments delivering year-over-year core growth,” said Matthew Stevenson, President and Chief Executive Officer of Holley.

Stevenson continued, “We believe we are entering the second half of the year with solid momentum, supported by new national retailer placements, a healthy cadence of product innovation, and several important launches slated for the coming months. At the same time, we have reinvigorated our marketing calendar with a greater focus on brand activation and enthusiast engagement, helping to strengthen awareness and demand across our portfolio.

“During the quarter we completed the sale of our non-core Restoration brands, including Scott Drake and Brothers Trucks, a step that further reduces complexity and enables us to concentrate resources on our highest-priority growth opportunities. We remain focused on disciplined execution and believe the actions we have taken position Holley for continued progress in the periods ahead.”

Jesse Weaver, Chief Financial Officer of Holley, added, “The second quarter showcased our continued focus on cash generation, balance sheet improvement, and disciplined capital allocation. Our underlying operating performance was stronger than the year-over-year Adjusted EBITDA comparison suggests: the prior-year quarter included a one-time, non-cash benefit from the capitalization of tariff costs that did not repeat this year, and adjusted for that item, we believe Adjusted EBITDA performance was approximately flat year-over-year. We generated strong free cash flow in the quarter and year-to-date, which enabled us to continue making progress on our capital priorities.

"During the quarter, we repurchased approximately $2.0 million of our common stock, reflecting our confidence in the long-term value of the business. Following a $15.0 million voluntary debt prepayment made after quarter-end, we have now reduced debt by $115.0 million through voluntary prepayments since September 2023. Combined with our strong cash generation, these actions contributed to another quarter of leverage reduction helping us maintain progress towards finishing the year below our targeted leverage ratio of 3.5x.

"Based on our first-half performance and the opportunities we see in the second half of the year, we are reiterating our full-year guidance and remain focused on delivering sustainable value for our shareholders."

Strategic Business Highlights and Recent Events

• 27 brands delivered growth across DTC and B2B channels.
• Generated $40.9 million of free cash flow and remain on track for year-end leverage below 3.5x.
• Long Term Strategic initiatives drove $13.4 million in revenue and delivered $8.3 million in cost savings.
• Realigned marketing to strengthen consumer engagement and brand activation.
• Repurchased ~$2.0 million of shares, reinforcing confidence in our long-term value creation.
• Continued portfolio rebalancing through the divestiture of the non-core Restoration brands.
• Reduced debt by an additional $15.0 million, bringing total debt reduction to $115.0 million since September 2023.
• Well positioned for H2 2026 with new retail placements and a strong product launch pipeline.

Outlook

**For the year ending December 31, 2026, core business revenue guidance remains unchanged:

MetricCurrent Full Year 2026 OutlookNet Sales
Core Business Growth Rate %1$610 - $640 million
~2% to ~7%Adjusted EBITDA*$127 - $137 millionCapital Expenditures$15 - $20 millionDepreciation and Amortization Expense$24 - $26 millionInterest Expense (excluding collar revaluation)$42 - $47 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 13761658.

For those unable to participate, a telephone replay recording will be available until Wednesday, August 12, 2026. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13761658. 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 American Performance, 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 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:

Anthony Rozmus / Jenna Kozlowski
Solebury Strategic Communications
203-428-3324
[email protected]

Media Relations Contacts:
Nathan Espinosa/Michael Murray
Kahn Media
818-881-5246
[email protected]

HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
       For the thirteen weeks ended For the twenty-six weeks ended  June 28, June 29, Variance Variance June 28, June 29, Variance Variance   2026   2025  ($) (%)  2026   2025  ($) (%)Net sales $172,007  $166,661  $5,346  3.2% $319,337  $319,705  $(368) -0.1%Cost of goods sold  101,463   97,103   4,360  4.5%  188,057   186,059   1,998  1.1%Gross profit  70,544   69,558   986  1.4%  131,280   133,646   (2,366) -1.8%Selling, general, and administrative  40,427   32,954   7,473  22.7%  75,829   69,653   6,176  8.9%Research and development costs  3,740   5,086   (1,346) -26.5%  7,736   9,179   (1,443) -15.7%Amortization of intangible assets  3,416   3,350   66  2.0%  6,844   6,882   (38) -0.6%Restructuring costs  840   355   485  136.7%  1,715   818   897  109.7%Loss on sale of assets  28,259   —   28,259  nm  28,224   —   28,224  nmOther operating (income) expense  (8,903)  299   (9,202) nm  (9,341)  257   (9,598) nmTotal operating expense  67,779   42,044   25,735  61.2%  111,007   86,789   24,218  27.9%Operating income  2,765   27,514   (24,749) -89.9%  20,273   46,857   (26,584) -56.7%Change in fair value of warrant liability  (548)  (7)  (541) nm  (1,579)  (80)  (1,499) nmChange in fair value of earn-out liability  (1,258)  (219)  (1,039) nm  (1,772)  (404)  (1,368) nmInterest expense, net  8,201   13,374   (5,173) -38.7%  18,119   29,082   (10,963) -37.7%Total non-operating expense  6,395   13,148   (6,753) -51.4%  14,768   28,598   (13,830) -48.4%Income (loss) before income taxes  (3,630)  14,366   (17,996) -125.3%  5,505   18,259   (12,754) -69.8%Income tax (benefit) expense  (1,200)  3,503   (4,703) nm  679   4,579   (3,900) nmNet income (loss) $(2,430) $10,863  $(13,293) -122.4% $4,826  $13,680  $(8,854) -64.7%Comprehensive income (loss):                Foreign currency translation adjustment  (1,869)  1,239   (3,108) -250.9%  (2,825)  954   (3,779) -396.2%Total comprehensive income (loss) $(4,299) $12,102  $(16,401) -135.5% $2,001  $14,634  $(12,633) -86.3%Common Share Data:                Basic net income (loss) per share $(0.02) $0.09  $(0.11) -122.2% $0.04  $0.11  $(0.07) -65.0%Diluted net income (loss) per share $(0.02) $0.09  $(0.11) -122.3% $0.04  $0.11  $(0.07) -65.2%Weighted average common shares outstanding - basic  120,285   119,163   1,122  0.9%  120,050   119,006   1,044  0.9%Weighted average common shares outstanding - diluted  120,285   119,791   494  0.4%  121,149   119,677   1,472  1.2%nm - not meaningful                

HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
     As of  June 28,
2026 December 31,
2025Assets    Cash and cash equivalents $69,020  $37,231Accounts receivable, less allowance for credit losses of $2,086 and $1,856, respectively  64,158   57,895Inventory  180,202   205,661Prepaids and other current assets  17,231   15,374Total current assets  330,611   316,161Property, plant, and equipment, net  50,174   45,127Goodwill  370,958   372,340Other intangibles assets, net  369,753   396,910Right-of-use assets  40,872   33,415Total assets $1,162,368  $1,163,953     Liabilities and Stockholders’ Equity    Accounts payable $55,972  $60,121Accrued liabilities  40,553   48,316Accrued interest  3,401   115Current portion of long-term debt  8,207   6,571Total current liabilities  108,133   115,123Long-term debt, net of current portion  518,606   516,078Warrant liability  444   2,024Earn-out liability  273   2,045Deferred taxes  47,362   46,540Other noncurrent liabilities  37,812   33,218Total liabilities  712,630   715,028     Common stock  12   12Additional paid-in capital  385,684   384,873Treasury stock, at cost, 707,113 and zero shares held as of June 28, 2026 and December 31, 2025, respectively  (2,000)  —Accumulated other comprehensive income (loss)  (2,705)  120Retained earnings  68,747   63,920Total stockholders' equity  449,738   448,925Total liabilities and stockholders' equity $1,162,368  $1,163,953

HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)       For the thirteen weeks ended For the twenty-six weeks ended  June 28,
2026 June 29,
2025 June 28,
2026 June 29,
2025Operating Activities        Net income (loss) $(2,430) $10,863  $4,826  $13,680 Adjustments to reconcile to net cash  34,552   9,389   43,321   23,849 Changes in operating assets and liabilities  14,989   20,235   (3,893)  (4,892)Net cash provided by operating activities  47,111   40,487   44,254   32,637          Investing Activities        Capital expenditures  (6,169)  (4,828)  (9,640)  (7,808)Acquisition of license agreement  —   (8,330)  (3,570)  (13,090)Business acquisition, net of cash acquired  —   —   (2,776)  — Proceeds from the disposal of assets  9,957   —   9,957   — Net cash provided by (used in) investing activities  3,788   (13,158)  (6,029)  (20,898)         Financing Activities        Net change in debt  (11,643)  (1,832)  (1,643)  (3,608)Payments from stock-based award activities  (1,490)  (256)  (2,486)  (850)Treasury stock purchase, at cost  (2,000)  —   (2,000)  — Net cash used in financing activities  (15,133)  (2,088)  (6,129)  (4,458)         Effect of foreign currency rate fluctuations on cash  188   (467)  (307)  474          Net change in cash and cash equivalents  35,954   24,774   31,789   7,755          Cash and Cash Equivalents        Beginning of period $33,066  $39,068  $37,231  $56,087 End of period $69,020  $63,842  $69,020  $63,842                  

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 twenty-six weeks ended  June 28,
2026 June 29,
2025 June 28,
2026 June 29,
2025Net Income (Loss) $(2,430) $10,863  $4,826  $13,680 Adjustments:        Interest expense, net  8,201   13,374   18,119   29,082 Income tax (benefit) expense  (1,200)  3,503   679   4,579 Depreciation  2,650   2,215   5,174   4,514 Amortization  3,417   3,350   6,844   6,882 EBITDA  10,638   33,305   35,642   58,737 Restructuring costs  840   355   1,715   818 Change in fair value of warrant liability  (548)  (7)  (1,579)  (80)Change in fair value of earn-out liability  (1,258)  (219)  (1,772)  (404)Loss on sale of assets  28,259   —   28,224   — Equity-based compensation expense  1,565   1,408   3,296   2,903 Notable items  3,161   1,287   4,889   1,484 Other operating (income) expense  (8,903)  299   (9,341)  257 Adjusted EBITDA $33,754  $36,428  $61,074  $63,715 Net Sales $172,007  $166,661  $319,337  $319,705 Net income (loss) margin  (1.4%)  6.5%  1.5%  4.3%Adjusted EBITDA Margin  19.6%  21.9%  19.1%  19.9%                 

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 June 28, 2026 December 31, 2025Net Income $10,322  $19,175 Adjustments:    Interest expense, net  40,870   51,833 Income tax expense  5,558   9,458 Depreciation  10,364   9,704 Amortization  13,740   13,778 EBITDA  80,854   103,948 Change in fair value of warrant liability  (288)  1,211 Change in fair value of earn-out liability  (471)  897 Equity-based compensation expense  8,556   8,163 Loss on sale of assets  28,259   — Gain on early extinguishment of debt  (93)  (93)Restructuring costs  3,800   2,903 Notable items  8,284   4,882 Other expense  (7,525)  2,110 Adjusted EBITDA  121,376   124,021 Additional permitted charges  7,633   7,265 Adjusted EBITDA per Credit Agreement $129,009  $131,286 Total debt $532,830  $529,557 Less: permitted cash and cash equivalents  50,000   37,231 Net indebtedness per Credit Agreement $482,830  $492,326 Credit Agreement Total Leverage Ratio 3.74 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 twenty-six weeks ended  June 28,
2026 June 29,
2025 June 28,
2026 June 29,
2025Net Income (Loss) $(2,430) $10,863  $4,826  $13,680 Special items:        Adjust for: change in fair value of warrant liability  (548)  (7)  (1,579)  (80)Adjust for: change in fair value of earn-out liability  (1,258)  (219)  (1,772)  (404)Adjust for: loss on sale of assets  28,259   —   28,224   — Adjusted Net Income $24,023  $10,637  $29,699  $13,196 

  For the thirteen weeks ended For the twenty-six weeks ended  June 28,
2026 June 29,
2025 June 28,
2026 June 29,
2025Net (Loss) Income per Diluted Share $(0.02) $0.09 $0.04  $0.11Special items:        Adjust for: change in fair value of warrant liability  —   —  (0.01)  —Adjust for: change in fair value of earn-out liability  (0.01)  —  (0.01)  —Adjust for: loss on sale of assets  0.23   —  0.23   —Adjusted Diluted EPS $0.20  $0.09 $0.25  $0.11               

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 twenty-six weeks ended  June 28,
2026 June 29,
2025 June 28,
2026 June 29,
2025Net Cash Provided by Operating Activities $47,111  $40,487  $44,254  $32,637 Capital expenditures, net of dispositions  (6,169)  (4,828)  (9,640)  (7,808)Free Cash Flow $40,942  $35,659  $34,614  $24,829