What were the key takeaways from Holley's earnings call?

Did Holley beat or miss consensus estimates last quarter?

What factors drove the changes in Holley's revenue and profit?

What guidance did Holley's management provide for the next earnings period?

What is Holley's latest dividend and current dividend yield?

What does Holley do and what are its main business segments?

What were the key takeaways from Holley’s earnings call?

What is the market's earnings forecast for Holley next quarter?

- **Core Growth Accelerates**: 6.4% Q3 core revenue growth, driven by volume and pricing, with all divisions contributing.
- **Margin Expansion**: Gross margin up to 43.2%, adjusted EBITDA margin 19.6%, reflecting pricing discipline and operational improvements.
- **Debt Reduction Milestone**: Leverage below 4x for the first time since 2022, with $100 million debt prepayment.
- **Strategic Initiatives Pay Off**: $26 million from new products and margin optimization, supporting long-term growth.
- **Consumer Resilience**: Enthusiast demand remains strong, with no signs of slowdown despite macro challenges.

**【Management Opening Remarks】**
- Anthony Rozmus introduced the call, highlighting the review of Q3 2025 financial results and guidance for the full year. He emphasized the company's focus on disciplined execution and strategic initiatives.

**【CEO Commentary】**
- **Core Business Growth**: 6.4% year-over-year, driven by volume (4%) and pricing (1%), with growth across all divisions and channels.
- **Strategic Initiatives**: Generated $26 million in revenue, including $11.3 million from new products and $7.7 million from margin optimization.
- **Financial Milestones**: Net debt-to-EBITDA leverage dropped to 3.9x (first below 4x since 2022), with $100 million debt prepayment since September 2023.
- **Operational Improvements**: In-stock rates for top 2,500 products near 93%, past due orders down 20.7%, and $3 million efficiency gains.
- **Event Engagement**: Record merchandise sales despite lower attendance at LS Fest East, with digital audience growth supporting sales.

**【CFO Commentary】**
- **Net Sales**: $138.4 million (+3.2% YoY), first GAAP net sales growth in 2 years, with core business up 6.4%.
- **Gross Margin**: 43.2% (+422 bps YoY), driven by pricing and operational efficiency.
- **Adjusted EBITDA**: $27.1 million (+22.6% YoY), margin 19.6% (+309 bps YoY).
- **Free Cash Flow**: $5.5 million (vs. -$2.1 million YoY), year-to-date $30.3 million.
- **Debt Reduction**: $15 million prepayment in Q3, total $100 million since Q3 2023, leverage at 3.9x.
- **Updated Guidance**: Revenue $590-605 million (+3.8% YoY), adjusted EBITDA $120-127 million.

**【Q&A Highlights】**
- **Pricing Realization**: Lower than expected due to B2B sales mix and contractual delays, but no trade-down observed.
- **Inventory Management**: Increased visibility through consignment and bonded warehouse adjustments, temporarily higher on-hand.
- **SEMA Impact**: Strong booth engagement and product launches, with events supporting D2C and B2B sales.
- **Consumer Resilience**: Enthusiast passion driving share gains despite macro challenges, with no signs of spending slowdown.
- **Future Growth**: Focus on B2B partnerships, data sharing, and operational efficiency to sustain margin expansion.


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