Holley 2025 Q3 Earnings Revenue Beats Expectations, Net Loss Narrows 87.2%

Holley (HLLY) reported Q3 2025 earnings on November 8, 2025, with revenue growth and improved net income, though earnings per share fell short of estimates. The company raised full-year revenue guidance, signaling confidence in its strategic initiatives.

Revenue

Holley’s total revenue rose 3.2% to $138.37 million in Q3 2025, surpassing the $134.04 million recorded in the same period of 2024. The increase was driven by volume growth and pricing discipline, with core business divisions reporting robust performance. Domestic Muscle and Euro & Import segments showed strong demand, while Truck & Off-Road and Safety & Racing contributed to diversified revenue streams.

Earnings/Net Income

The company narrowed its net loss to $-806,000 in Q3 2025, a 87.2% reduction from the $-6.29 million loss in 2024 Q3. Earnings per share improved to a loss of $0.01 from $0.05 a year ago. While revenue outperformed expectations, earnings fell short due to operational costs and interest expenses.

Post-Earnings Price Action Review

The strategy of buying HLLY stock upon revenue beats and holding for 30 days appears viable, supported by recent performance, analyst optimism, and debt reduction efforts. Holley’s revenue beat of $138.4 million exceeded expectations, and the stock surged over 20% pre-market, reflecting investor confidence. Analysts have issued buy ratings with a median price target of $4.5, though EPS estimates were missed. Insider trading included two sales but no purchases, potentially indicating personal liquidity needs rather than lack of confidence. The company’s $100 million debt reduction since 2023 underscores financial discipline, but investors must weigh the earnings outlook and market volatility before committing.

CEO Commentary

Matthew Stevenson, CEO of Holley, emphasized disciplined execution and strategic transformation, driving 6.4% core growth across divisions. He highlighted momentum in B2B and D2C channels, improved pricing, and innovation in product launches like Holley EFI. The company’s net debt-to-EBITDA leverage dropped to 3.9x, and free cash flow generation of $5.5 million in a slow quarter reinforced confidence in long-term value creation.

Guidance

Holley raised its 2025 full-year revenue guidance to $590–$605 million, reflecting 3.8% core growth at midpoint. Adjusted EBITDA is projected at $120–$127 million, with capital expenditures capped at $10–$14 million.

Additional News

1. Secondary Stock Offering: Holley announced a secondary stock offering at $2.75 per share, aiming to raise capital for strategic initiatives and debt reduction.

2. Insider Sales Activity: Two insider sales of 16.1 million shares were reported in the past six months, with no purchases, sparking investor scrutiny on insider sentiment.

3. Tariff Mitigation Strategy: The company plans to diversify supplier locations and reshore production to North America, addressing ongoing trade challenges.

Key Metrics at a Glance

• Revenue: $138.37M (+3.2% YoY)

• Net Loss: $-806K (-87.2% YoY)

• EPS: $-0.01 vs. $-0.05 YoY

• Debt Reduction: $100M since 2023

• Guidance: $590–$605M FY25 Revenue

Analyst Ratings

• Buy: 6 firms

• Hold: 2 firms

• Median Price Target: $4.5

Price Targets

• High: $6.0 (Canaccord Genuity)

• Low: $3.0 (Raymond James)

Institutional Holdings

• Added: Franklin Resources (+145.6%), Boston Partners (+28.3%)

• Reduced: Kayne Anderson (-30.0%), Blue Owl Capital (-22.7%)

Technical Outlook

• Support: $2.73

• Resistance: $3.96

• Strategy: Buy near $3.60 with a target at $3.96 and stop-loss below $2.73.

Risks to Consider

• Earnings Volatility: 5 of the past 8 quarters missed EPS estimates.

• Debt Management: Interest expenses remain a drag despite repayments.

• Sector Competition: Auto parts industry faces margin pressures from tariffs and supply chain costs.

Conclusion

Holley’s Q3 results highlight a mix of progress and challenges. While revenue growth and debt reduction are positives, EPS misses and operational costs remain concerns. The raised guidance and analyst optimism suggest potential for short-term gains, but investors should monitor earnings consistency and macroeconomic headwinds.

Disclosures

• This article is not financial advice.

• Data sourced from Holley’s 10-Q filing, analyst reports, and institutional holdings.

• Past performance does not guarantee future results.