Summary of Holley (HLLY) FY Conference Call - August 12, 2025 Company Overview - Holley is a 120-year-old company known for serving automotive enthusiasts, with a consumer base of approximately 70 million enthusiasts, which is larger than many other consumer discretionary segments [3][2] - The company went public in 2021 and has since been focused on transforming into a billion-dollar platform in the consumer auto performance enthusiast space [5][4] Market Segmentation and Addressable Markets - Holley has organized its business into four distinct verticals: Domestic Muscle, Trucking Off-Road, Euro and Import, and Safety and Racing [5][6] - The total addressable market for Domestic Muscle is estimated at $5 billion, while Trucking Off-Road is $26 billion, Euro and Import is $14 billion, and Safety and Racing is also significant [7][8][9] - The company is seeing a shift in consumer interest towards vehicles from the late 1990s and early 2000s, indicating a long runway for growth in the Domestic Muscle segment [26][6] Financial Performance and Growth Strategy - Holley has posted back-to-back growth in its core business for two consecutive quarters, outperforming competitors in a flat market [14][18] - The company has focused on operational improvements and cost reductions to maintain margins and EBITDA, even in a challenging market [16][30] - Holley aims to reduce its net leverage from over four times to closer to three times through free cash flow generation and operational efficiency [37][38] Consumer Trends and Market Conditions - The company acknowledges that the automotive industry has faced challenges, with a depressed SAAR (Seasonally Adjusted Annual Rate) of 15 million vehicles, but believes that a return to 17 million is possible with lower interest rates and aggressive manufacturer rebates [22][23] - Holley’s consumer base remains stable and enthusiastic, with spending patterns expected to normalize post-COVID [24][59] Tariffs and Supply Chain Management - Holley has implemented various tariff mitigation strategies and believes it is well-positioned to navigate supply chain challenges better than competitors [30][32] - The company recognizes the complexities of moving supply chains out of China, emphasizing the importance of quality and craftsmanship [33][34] M&A Strategy and Future Outlook - Holley maintains a robust pipeline for M&A opportunities but is cautious about pursuing large transactions until leverage is optimized [41][42] - The company is focused on smaller deals that align with its growth strategy without jeopardizing its path to lower leverage [41][42] Investor Relations and Market Perception - Holley has seen a 60% increase in share performance over the last five days, attributed to consistent execution of its growth strategy [55][56] - The management emphasizes the importance of building credibility with investors by delivering on promises and maintaining operational excellence [55][58] Key Takeaways - Holley is positioned for growth in multiple automotive segments, with a strong focus on operational efficiency and market share expansion - The company is navigating macroeconomic challenges while maintaining a stable consumer base and exploring strategic M&A opportunities - Holley’s management is committed to improving investor relations and demonstrating the value of its business model through consistent performance and transparency

Core Insights - Holley Performance Brands and Callaway Cars have formed a partnership to develop performance packages for GM trucks and SUVs, aiming to enhance dealer network access and serve automotive enthusiasts [1][4][5] Partnership Overview - The collaboration combines Callaway's engineering expertise with Holley's operational capabilities to deliver turnkey, dealer-approved performance solutions [2][9] - The performance packages will target popular GM models including Silverado, Sierra, Suburban, Tahoe, Yukon, Escalade, and Corvette, with varying price points [3][4] Strategic Initiatives - Holley will lead digital and direct-to-consumer sales, while Callaway will focus on GM dealership outreach [3] - Investments will be made by Holley to support vehicle development, marketing, and activation efforts, including multi-channel outreach campaigns [6] New Facilities and Production Capacity - A new Callaway Performance Center will be established in Bowling Green, Kentucky, to enhance production capacity and availability of dealer-backed solutions [8] - The center will focus on Corvette and GM truck and SUV offerings, leveraging synergies with local production [7][8] Market Positioning - The partnership positions both companies to drive growth and deliver innovative products for automotive enthusiasts, enhancing their presence in the performance aftermarket [5][9] - Holley aims to solidify its status as a global leader in the automotive performance aftermarket through this collaboration [5]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for fast-moving stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Bargain Stocks with Momentum - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Holley Inc. (HLLY) Analysis - Holley Inc. (HLLY) has seen a price increase of 46.1% over the past four weeks, indicating growing investor interest [3] - HLLY gained 44.7% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - HLLY has a beta of 1.35, suggesting it moves 35% higher than the market in either direction [4] Group 4: Valuation and Earnings Estimates - HLLY has a Momentum Score of A, indicating a favorable time to invest [5] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which attract more investors [6] - HLLY is trading at a Price-to-Sales ratio of 0.64, meaning investors pay 64 cents for each dollar of sales, indicating a reasonable valuation [6] Group 5: Additional Investment Opportunities - Besides HLLY, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [7] - Zacks offers over 45 Premium Screens tailored to different investing styles to help identify winning stock picks [8]

Group 1 - Holley Inc. (HLLY) has shown solid improvement in earnings estimates, leading to positive short-term price momentum [1][3] - Analysts are increasingly optimistic about Holley's earnings prospects, as reflected in the upward trend of estimate revisions [2][3] - The Zacks Rank system indicates strong agreement among analysts in revising Holley's earnings estimates upward, resulting in improved consensus estimates for the next quarter and full year [3][10] Group 2 - For the current quarter, Holley is expected to earn $0.03 per share, representing a year-over-year increase of +400.0% [7] - The Zacks Consensus Estimate for Holley has increased by 36% over the last 30 days, with no negative revisions [7] - For the full year, the earnings estimate is $0.21 per share, reflecting a +5.0% change from the previous year, with a 9.47% increase in consensus estimates [8][9] Group 3 - Holley has achieved a Zacks Rank 2 (Buy), indicating promising estimate revisions that could lead to significant stock performance [10] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [10] - Holley's stock has gained 29.9% over the past four weeks, driven by solid estimate revisions and earnings growth prospects [11]

Core Viewpoint - Holley Inc. (HLLY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - Holley's earnings estimate for the fiscal year ending December 2025 is projected at $0.21 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 9.5% over the past three months [8]. Investment Implications - The upgrade reflects an improvement in Holley's underlying business, suggesting that investors may push the stock price higher due to this positive trend [5][10]. - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating Holley's strong position in terms of earnings estimate revisions [9][10].

Core Insights - Holley reported stronger-than-expected GAAP revenue of $166.7 million for Q2 2025, exceeding analyst estimates by $4.0 million, despite a 1.7% year-over-year decline in headline sales [1][5] - The core business sales increased by 3.9% after adjusting for business exits and discontinued items, indicating resilient momentum [1][5] - Profitability faced challenges, with adjusted EBITDA dropping to $36.4 million, down 5.0% from the previous year, and net income margin declining to 6.5% [1][7] Financial Performance - Q2 2025 EPS (Non-GAAP) was $0.09, a decrease of 10.0% from $0.10 in Q2 2024 [2] - Revenue (GAAP) was $166.7 million, compared to $169.5 million in Q2 2024, reflecting a 1.7% decline [2] - Adjusted EBITDA fell to $36.4 million from $38.3 million year-over-year, with a margin slip from 22.6% to 21.9% [2][7] - Free cash flow (Non-GAAP) reached a record $35.7 million, a 46.2% increase from $24.4 million in Q2 2024 [2][8] Business Strategy and Focus - Holley focuses on channel expansion, digital sales, and direct-to-consumer connections, aiming to strengthen its multi-brand portfolio and boost product innovation [4] - The company reported a 6.5% increase in B2B channel sales and over 8.6% growth in DTC orders, with third-party marketplace activity rising more than 28% [6] - R&D spending increased by 18.0% to $5.1 million, supporting new product launches across various categories [9][10] Cost Management and Tariff Response - Holley implemented an average price increase of 8.75% effective June 9, 2025, to mitigate tariff impacts, forecasting limited effects for the remainder of FY2025 [11] - The company reduced SG&A expenses by $1.6 million year-over-year, reflecting a focus on cost control and efficiency [11] Future Outlook - For FY2025, Holley projects revenue between $580 million and $595 million, indicating growth of 0.8% to 3.4% after normalizing for recent portfolio changes [13] - Adjusted EBITDA is expected to range from $116 million to $127 million, with capital expenditures forecasted between $10 million and $14 million [13] - The guidance suggests low single-digit growth in core segments, driven by channel momentum and proactive pricing strategies [14]

Company Performance - Holley Inc. reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.10 per share, and down from $0.10 per share a year ago, representing an earnings surprise of -10.00% [1] - The company posted revenues of $166.66 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.53%, but down from $169.5 million year-over-year [2] - Over the last four quarters, Holley has surpassed consensus EPS estimates just once and topped consensus revenue estimates three times [2] Stock Performance - Holley shares have lost approximately 32.5% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The current consensus EPS estimate for the coming quarter is $0.03 on revenues of $134.7 million, and for the current fiscal year, it is $0.20 on revenues of $591.48 million [7] Industry Outlook - The Automotive - Original Equipment industry, to which Holley belongs, is currently in the top 35% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that industry performance can significantly impact stock performance [5][8]

Holley (HLLY) Q2 2025 Earnings Call August 06, 2025 08:30 AM ET Speaker0Good morning, ladies and gentlemen, and welcome to the conference call to discuss Holley's Second Quarter twenty twenty five Earnings Results. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions for asking questions will be provided at that time. We ask that participants limit themselves to one question and one related follow-up during the Q and A period. Please ...

Second Quarter 2025 Financial Results Call 1 Disclaimer Certain statements in this presentation 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 or ...

[Holley Reports Second Quarter 2025 Results](index=1&type=section&id=Holley%20Reports%20Second%20Quarter%202025%20Results) [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) Holley Performance Brands achieved its second consecutive quarter of core net sales growth in Q2 2025, successfully mitigating tariff impacts through strategic sourcing and pricing. - Achieved second consecutive quarter of core net sales growth[1](index=1&type=chunk) - Successfully mitigated tariff impacts through strategic sourcing and pricing actions, forecasting a negligible impact on the business[1](index=1&type=chunk)[4](index=4&type=chunk) [Second Quarter Highlights vs. Prior Year Period](index=1&type=section&id=Second%20Quarter%20Highlights%20vs.%20Prior%20Year%20Period) [CEO Commentary and Business Momentum](index=1&type=section&id=CEO%20Commentary%20and%20Business%20Momentum) CEO Matthew Stevenson highlighted continued core business momentum, driven by strategic framework execution, strong new product launches, and significant growth across B2B and direct-to-consumer channels, enhancing guidance visibility. - New product launches generated approximately **$8 million in revenue** during Q2 2025[3](index=3&type=chunk) - Strengthened partnerships with B2B customers and saw meaningful growth across B2B and direct-to-consumer channels[3](index=3&type=chunk) - Tariff mitigation efforts, including strategic sourcing and targeted pricing, are expected to have a negligible impact on the business, leading to increased guidance visibility[4](index=4&type=chunk) [Key Financial Results (Q2 2025 vs. Q2 2024)](index=1&type=section&id=Key%20Financial%20Results%20(Q2%202025%20vs.%20Q2%202024)) Holley reported a slight decrease in total net sales but achieved 3.9% core business net sales growth, with declines in Net Income and Adjusted EBITDA, while Net Cash Provided by Operating Activities and Free Cash Flow significantly increased to a company record high. Q2 2025 Key Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------------------- | :---------- | :---------- | :--------- | | Net Sales | $166.7 million | $169.5 million | (1.7)% | | Core business net sales growth | 3.9% | N/A | N/A | | Net Income | $10.9 million | $17.1 million | (36.5)% | | Diluted EPS | $0.09 | $0.14 | (35.7)% | | Net Cash Provided by Operating Activities | $40.5 million | $25.7 million | 57.6% | | Adjusted Net Income | $10.6 million | $12.6 million | (15.9)% | | Adjusted EBITDA | $36.4 million | $38.3 million | (5.0)% | | Free Cash Flow | $35.7 million | $24.4 million | 46.3% | [Strategic Business Highlights](index=2&type=section&id=Strategic%20Business%20Highlights) [Operational Achievements and Growth Initiatives](index=2&type=section&id=Operational%20Achievements%20and%20Growth%20Initiatives) Holley achieved 3.9% core business net sales growth in Q2 2025, driven by strategic framework execution generating $27 million in revenue, significant growth across 20+ brands in both DTC and B2B channels, and product innovation contributing $10.8 million in revenue. - Achieved **3.9% core business net sales growth** for Q2 2025, marking consecutive quarters of growth across all divisions[10](index=10&type=chunk) - Execution of strategic framework drove approximately **$27 million in revenue** on key initiatives for Q2 2025[10](index=10&type=chunk) - Expanded growth across **20+ brands** in both DTC and B2B channels, with B2B channel growing approximately **6.5%** and DTC orders growing over **8.6%** (third-party platforms up >28%)[10](index=10&type=chunk) - Product innovation and strategic pricing initiatives contributed **$10.8 million in revenue** for the quarter and **$18.7 million year-to-date**[10](index=10&type=chunk) [Outlook](index=2&type=section&id=Outlook) [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) Holley refined its full-year 2025 guidance, now incorporating the expected net impact of tariffs, projecting Net Sales between $580-$595 million and Adjusted EBITDA between $116-$127 million. Full Year 2025 Outlook | Metric | Full Year 2025 Outlook | | :-------------------------------- | :--------------------- | | Net Sales | $580 - $595 million | | Net Sales %YOY (vs. Core Business) | 0.8% to 3.4% | | Adjusted EBITDA | $116 - $127 million | | Capital Expenditures | $10 - $14 million | | Depreciation and Amortization Expense | $22 - $24 million | | Interest Expense (excluding collar revaluation) | $45 - $50 million | [Corporate Information](index=2&type=section&id=Corporate%20Information) [Conference Call Details](index=2&type=section&id=Conference%20Call) Details for the conference call and audio webcast scheduled for August 6, 2025, at 8:30 a.m. Eastern Time, including access numbers and replay information, are provided for investors and media. - Conference call and audio webcast scheduled for **August 6, 2025, at 8:30 a.m. ET** to discuss results[8](index=8&type=chunk) - Webcast available on investor.holley.com; telephone replay available until August 13, 2025[8](index=8&type=chunk)[9](index=9&type=chunk) [Additional Financial Information & Investor Resources](index=3&type=section&id=Additional%20Financial%20Information) Holley encourages investors to visit its Investor Relations page on holley.com for comprehensive financial information, including earnings presentations and regular updates. - Investor Relations page (investor.holley.com) provides significant financial information, including earnings presentations, and is regularly updated[11](index=11&type=chunk) [About Holley Performance Brands](index=3&type=section&id=About%20Holley%20Performance%20Brands) Holley Performance Brands is a leading designer, manufacturer, and marketer of high-performance automotive aftermarket products, managing a portfolio of iconic brands across four key consumer vertical groupings. - Holley Performance Brands is a leader in designing, manufacturing, and marketing high-performance products for automotive enthusiasts[12](index=12&type=chunk) - Manages a portfolio of iconic brands and focuses on four consumer vertical groupings: Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing[12](index=12&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, highlighting that projections are subject to various risks and uncertainties that could cause actual results to differ materially. - Statements regarding future financial or operating performance are forward-looking and subject to risks and uncertainties[13](index=13&type=chunk) - Factors that may cause actual results to differ include business strategy execution, market competition, product development, customer relationships, economic conditions, and supply chain disruptions[13](index=13&type=chunk) [Contacts](index=4&type=section&id=Investor%20Relations%20Contacts) Contact information is provided for investor relations and media inquiries. - Investor Relations contacts: Anthony Rozmus / Neel Sikka / Jenna Kozlowski at Solebury Strategic Communications (203-428-3324, holley@soleburystrat.com)[15](index=15&type=chunk) - Media Relations contacts: Jordan Moore / Sydney Goggans at Tiny Mighty Communications (615-454-2913)[15](index=15&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Financial%20Tables%20to%20Follow) [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) The unaudited condensed consolidated statements of comprehensive income show a decrease in net sales and net income for both the thirteen and twenty-six weeks ended June 29, 2025, compared to the prior year, despite an increase in gross profit for the twenty-six-week period. Condensed Consolidated Statements of Comprehensive Income (Q2 2025 vs. Q2 2024) | Metric | 13 Weeks Ended June 29, 2025 (in thousands of dollars) | 13 Weeks Ended June 30, 2024 (in thousands of dollars) | Variance ($) (in thousands of dollars) | Variance (%) | 26 Weeks Ended June 29, 2025 (in thousands of dollars) | 26 Weeks Ended June 30, 2024 (in thousands of dollars) | Variance ($) (in thousands of dollars) | Variance (%) | | :-------------------------------- | :--------------------------- | :--------------------------- | :----------- | :----------- | :--------------------------- | :--------------------------- | :----------- | :----------- | | Net Sales | $166,661 | $169,496 | $(2,835) | -1.7% | $319,705 | $328,132 | $(8,427) | -2.6% | | Cost of Goods Sold | $97,103 | $99,203 | $(2,100) | -2.1% | $186,059 | $205,780 | $(19,721) | -9.6% | | Gross Profit | $69,558 | $70,293 | $(735) | -1.0% | $133,646 | $122,352 | $11,294 | 9.2% | | Operating Income | $27,514 | $27,878 | $(364) | -1.3% | $46,857 | $38,086 | $8,771 | 23.0% | | Net Income | $10,863 | $17,105 | $(6,242) | -36.5% | $13,680 | $20,835 | $(7,155) | -34.3% | | Diluted Net Income per Share | $0.09 | $0.14 | $(0.05) | -36.8% | $0.11 | $0.17 | $(0.06) | -34.5% | [Condensed Consolidated Balance Sheet](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET) The unaudited condensed consolidated balance sheet shows an increase in total assets to $1,158,230 thousand as of June 29, 2025, from $1,133,320 thousand at December 31, 2024, primarily driven by increases in cash and cash equivalents and accounts receivable. Condensed Consolidated Balance Sheet (As of June 29, 2025 vs. December 31, 2024) | Metric | June 29, 2025 (in thousands of dollars) | December 31, 2024 (in thousands of dollars) | | :-------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $63,842 | $56,087 | | Accounts receivable | $51,011 | $36,123 | | Inventory | $180,827 | $192,523 | | Total Current Assets | $303,213 | $297,347 | | Total Assets | $1,158,230 | $1,133,320 | | Total Current Liabilities | $103,559 | $95,172 | | Long-Term Debt, Net of Current Portion | $543,271 | $545,385 | | Total Liabilities | $720,391 | $712,168 | | Total Stockholders' Equity | $437,839 | $421,152 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The unaudited condensed consolidated statements of cash flows indicate a significant increase in net cash provided by operating activities for the thirteen weeks ended June 29, 2025, to $40,487 thousand, compared to $25,678 thousand in the prior year. Condensed Consolidated Statements of Cash Flows (Q2 2025 vs. Q2 2024) | Metric | 13 Weeks Ended June 29, 2025 (in thousands of dollars) | 13 Weeks Ended June 30, 2024 (in thousands of dollars) | 26 Weeks Ended June 29, 2025 (in thousands of dollars) | 26 Weeks Ended June 30, 2024 (in thousands of dollars) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Operating Activities | $40,487 | $25,678 | $32,637 | $44,521 | | Net Cash Used in Investing Activities | $(13,158) | $(1,325) | $(20,898) | $(2,416) | | Net Cash Used in Financing Activities | $(2,088) | $(12,373) | $(4,458) | $(30,042) | | Net Change in Cash and Cash Equivalents | $24,774 | $11,953 | $7,755 | $11,999 | | Cash and Cash Equivalents, End of Period | $63,842 | $53,080 | $63,842 | $53,080 | [Use and Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=USE%20AND%20RECONCILIATION%20OF%20NON-GAAP%20FINANCIAL%20MEASURES) [Non-GAAP Measures Overview and Definitions](index=8&type=section&id=Non-GAAP%20Measures%20Overview%20and%20Definitions) Holley provides various non-GAAP financial measures to offer supplemental insights into operating performance and facilitate period-over-period comparisons, excluding items not indicative of ongoing operations. - Non-GAAP measures (EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, etc.) are used to supplement GAAP measures, providing insights into ongoing operating performance by excluding non-recurring or non-operational items[22](index=22&type=chunk)[23](index=23&type=chunk) - Adjusted EBITDA is defined as EBITDA adjusted for restructuring costs, changes in fair value of warrant/earn-out liability, equity-based compensation, loss on early extinguishment of debt, notable items, and other expenses/gains[24](index=24&type=chunk) [Adjusted EBITDA Reconciliation](index=8&type=section&id=Adjusted%20EBITDA%20Reconciliation) The reconciliation shows that Adjusted EBITDA for the thirteen weeks ended June 29, 2025, was $36,428 thousand, a decrease from $38,296 thousand in the prior year, while for the twenty-six weeks, it increased to $63,715 thousand. Adjusted EBITDA Reconciliation (Q2 2025 vs. Q2 2024) | Metric | 13 Weeks Ended June 29, 2025 (in thousands of dollars) | 13 Weeks Ended June 30, 2024 (in thousands of dollars) | 26 Weeks Ended June 29, 2025 (in thousands of dollars) | 26 Weeks Ended June 30, 2024 (in thousands of dollars) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income | $10,863 | $17,105 | $13,680 | $20,835 | | EBITDA | $33,305 | $38,442 | $58,737 | $58,185 | | Adjusted EBITDA | $36,428 | $38,296 | $63,715 | $59,252 | | Net Income Margin | 6.5% | 10.1% | 4.3% | 6.3% | | Adjusted EBITDA Margin | 21.9% | 22.6% | 19.9% | 18.1% | [Bank-adjusted EBITDA Leverage Ratio Reconciliation](index=10&type=section&id=Bank-adjusted%20EBITDA%20Leverage%20Ratio) The Bank-adjusted EBITDA Leverage Ratio increased slightly to 4.22x for the trailing twelve months ended June 29, 2025, from 4.17x at December 31, 2024, based on Net Indebtedness of $508,224 thousand. - Bank-adjusted EBITDA Leverage Ratio is defined as Net Debt divided by Bank-adjusted EBITDA for the trailing twelve-month period, as per the Credit Agreement[27](index=27&type=chunk) Bank-adjusted EBITDA Leverage Ratio | Metric | TTM June 29, 2025 | December 31, 2024 | | :-------------------------------- | :---------------- | :---------------- | | Adjusted EBITDA (in thousands of dollars) | $114,960 | $110,493 | | Adjusted EBITDA per Credit Agreement (in thousands of dollars) | $120,323 | $122,754 | | Net Indebtedness per Credit Agreement (in thousands of dollars) | $508,224 | $511,840 | | Bank-adjusted EBITDA Leverage Ratio | 4.22 x | 4.17 x | [Adjusted Net Income and Diluted EPS Reconciliation](index=11&type=section&id=Adjusted%20Net%20Income%20and%20Diluted%20EPS) Adjusted Net Income for the thirteen weeks ended June 29, 2025, was $10,637 thousand, and Adjusted Diluted EPS was $0.09, reflecting adjustments for changes in fair value of warrant and earn-out liabilities. - Adjusted Net Income excludes the after-tax effect of changes in fair value of warrant liability, earn-out liability, asset write-downs, and loss on early extinguishment of debt, used to focus on ongoing operations[29](index=29&type=chunk) Adjusted Net Income and Diluted EPS Reconciliation | Metric | 13 Weeks Ended June 29, 2025 (in thousands of dollars) | 13 Weeks Ended June 30, 2024 (in thousands of dollars) | 26 Weeks Ended June 29, 2025 (in thousands of dollars) | 26 Weeks Ended June 30, 2024 (in thousands of dollars) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income | $10,863 | $17,105 | $13,680 | $20,835 | | Adjusted Net Income | $10,637 | $12,645 | $13,196 | $12,740 | | Net Income per Diluted Share | $0.09 | $0.14 | $0.11 | $0.17 | | Adjusted Diluted EPS | $0.09 | $0.10 | $0.11 | $0.11 | [Free Cash Flow Reconciliation](index=12&type=section&id=Free%20Cash%20Flow) Free Cash Flow for the thirteen weeks ended June 29, 2025, was $35,659 thousand, a significant increase from $24,353 thousand in the prior year, calculated by subtracting capital expenditures from net cash provided by operating activities. - Free Cash Flow is defined as net cash provided by operating activities minus cash payments for capital expenditures, net of dispositions, used to understand cash generation after capital investments[31](index=31&type=chunk) Free Cash Flow Reconciliation | Metric | 13 Weeks Ended June 29, 2025 (in thousands of dollars) | 13 Weeks Ended June 30, 2024 (in thousands of dollars) | 26 Weeks Ended June 29, 2025 (in thousands of dollars) | 26 Weeks Ended June 30, 2024 (in thousands of dollars) | | :-------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Operating Activities | $40,487 | $25,678 | $32,637 | $44,521 | | Capital Expenditures, Net of Dispositions | $(4,828) | $(1,380) | $(7,808) | $(2,645) | | Free Cash Flow | $35,659 | $24,353 | $24,829 | $42,105 |