Holley (US:HLLY)2025-08-06 12:30Financial Performance Highlights - Core business delivered a solid 3.9% revenue growth across all divisions in Q2[12] - Free Cash Flow reached $35.7 million in Q2, a record quarterly high for the company[12] - Net sales were $166.7 million, a decrease of 1.7% compared to the previous year, but reflecting a 3.9% increase excluding divestitures and strategic product rationalization[28] - Gross margin was 41.7%, an increase of 26 basis points compared to the previous year[28] - Adjusted EBITDA was $36.4 million, with an Adjusted EBITDA Margin of 21.9%[28] Strategic Initiatives and Growth - Strategic framework execution drove approximately $27 million in revenue from key initiatives[12, 19] - DTC grew 8.6%, with third-party platforms like Amazon and eBay increasing by more than 28%[12] - Product innovation and strategic pricing initiatives contributed $10.8 million in revenue[12] - Tariff mitigation efforts are expected to result in approximately $15 million in savings through 2026[21] Financial Outlook - FY25 Net Sales guidance is $580 million to $595 million, representing a year-over-year growth of 0.8% to 3.4%[40] - FY25 Adjusted EBITDA guidance is $116 million to $127 million[40] Operational Improvements - Inventory reduction of over $9 million since the beginning of the year[13, 27]