Holley (US:HLLY)2025-11-07 12:32Financial Performance - Core business net sales increased by 6.4% to $138.4 million for Q3 2025 compared to $134.0 million in Q3 2024[6] - Net Loss narrowed to $(0.8) million, or $(0.01) per diluted share, compared to $(6.3) million, or $(0.05) per diluted share, in the prior year[6] - Adjusted EBITDA rose to $27.1 million, up from $22.1 million in Q3 2024[6] - Net sales for the thirteen weeks ended September 28, 2025, were $138,373,000, an increase of 3.2% compared to $134,038,000 for the same period in 2024[18] - Gross profit for the thirteen weeks ended September 28, 2025, was $59,839,000, reflecting a 14.4% increase from $52,306,000 in the prior year[18] - Operating income surged to $15,867,000 for the thirteen weeks ended September 28, 2025, a significant increase of 185.2% compared to $5,563,000 in the same period of 2024[18] - Net income for the thirteen weeks ended September 28, 2025, was a loss of $806,000, an improvement of 87.2% from a loss of $6,288,000 in the prior year[18] - Adjusted EBITDA for the thirteen weeks ended September 28, 2025, was $27,106 million, representing a 22.5% increase from $22,114 million in the prior year[27] - The net income margin improved to (0.6%) for the thirteen weeks ended September 28, 2025, compared to (4.7%) in the prior year[27] Cash Flow and Debt Management - Free Cash Flow improved to $5.5 million in Q3 2025, a $7 million increase from the previous year[6] - The company reported a net cash provided by operating activities of $7,430,000 for the thirteen weeks ended September 28, 2025, compared to a net cash used of $1,748,000 in the same period of 2024[22] - Total debt repayment reached $100 million since September 2023, lowering the leverage ratio to 3.9x, the lowest since 2022[5] - Total debt as of September 28, 2025, was $542,938 million, a decrease from $561,840 million at December 31, 2024[29] - The Bank-adjusted EBITDA leverage ratio was 3.91x as of September 28, 2025, compared to 4.17x at December 31, 2024[29] Guidance and Future Outlook - Full-year 2025 net sales guidance is set between $590 million and $605 million, reflecting a year-over-year growth of 2.5% to 5.1%[8] - Adjusted EBITDA guidance for the full year 2025 is projected between $120 million and $127 million[8] - The company plans to continue executing its strategic framework to drive long-term growth and operational efficiency[7] Asset and Liability Overview - Total assets increased to $1,165,114,000 as of September 28, 2025, compared to $1,133,320,000 as of December 31, 2024[20] - Cash and cash equivalents decreased to $50,723,000 as of September 28, 2025, down from $56,087,000 at the end of 2024[20] - Total liabilities rose to $725,377,000 as of September 28, 2025, compared to $712,168,000 as of December 31, 2024[20] Capital Expenditures - Capital expenditures for the thirty-nine weeks ended September 28, 2025, were $26,408,000, significantly higher than $2,727,000 in the prior year[22] Product and Market Performance - The company achieved approximately 7.3% growth in B2B channels and 4.2% growth in DTC orders in Q3 2025 compared to the same period last year[12] - Product innovation and strategic pricing initiatives contributed $11.3 million in revenue for Q3 2025 and $30.1 million year-to-date[12] - Free cash flow for the thirty-nine weeks ended September 28, 2025, was $30,319 million, down from $40,046 million in the same period of 2024[33] - Adjusted net income for the thirty-nine weeks ended September 28, 2025, was $16,535 million, compared to $12,282 million in the same period of 2024[31] - The adjusted diluted EPS for the thirty-nine weeks ended September 28, 2025, was $0.14, up from $0.10 in the same period of 2024[31]