Revenue miss and guidance cut are negatives, but maintained EBITDA guidance and margin expansion provide a floor. Watch Q2 order trends and portfolio optimization execution — if core business growth materializes, the stock could recover; further weakness in distributor orders would confirm the bear case.
Price Chart
Executive Summary
Holley reported Q1 2026 net sales of $147.3M, down 3.7% YoY from $153.0M, but net income rose to $7.3M ($0.06/diluted share) from $2.8M ($0.02) last year. Adjusted EBITDA was flat at $27.3M with margin expansion to 18.5% (up 71 bps). Full-year 2026 revenue guidance was lowered by $15M to $610-$640M due to portfolio optimization, but core business growth rate (2-7%) and Adjusted EBITDA guidance ($127-$137M) were maintained.
Key Financial Metrics
Key Facts
- Q1 2026 net sales of $147.3M, down 3.7% YoY from $153.0M
- Net income of $7.3M ($0.06/diluted) vs $2.8M ($0.02) YoY — up 157.6%
- Adjusted EBITDA flat at $27.3M; margin expanded 71 bps to 18.5%
- Full-year 2026 revenue guidance lowered by $15M to $610-$640M (from $625-$655M)
- Core business growth rate (2-7%) and Adjusted EBITDA guidance ($127-$137M) maintained
- Portfolio optimization expected to reduce SKUs by >11,000 and generate >$15M in incremental cash
- Acquired HRX (bolt-on racewear) — re-engagement of M&A strategy
- Bank-adjusted EBITDA leverage ratio increased to 3.84x from 3.75x at year-end 2025
- Free cash flow improved to -$6.3M from -$10.8M YoY
Financial Impact
Revenue guidance cut by $15M; Adjusted EBITDA guidance unchanged; net income improved $4.4M YoY
Risk Factors
- Revenue decline of 3.7% YoY — first quarter of negative growth after prior quarter's 10.9% gain
- Full-year revenue guidance cut by $15M due to portfolio optimization
- Leverage ratio increased to 3.84x from 3.75x — moving away from 4.0x target
- Restructuring costs up 89% YoY to $875K
- Free cash flow remains negative at -$6.3M
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001822928-26-000018 |
| Document: hlly-20260506.htm | 0001822928-26-000018 |
| Document: 0001822928-26-000018-index-headers.html | 0001822928-26-000018 |
| Document: 0001822928-26-000018-index.html | 0001822928-26-000018 |
| Document: 0001822928-26-000018.txt | 0001822928-26-000018 |
| 8-K Data (Synthetic) | 0001822928-26-000018 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | Press Release | $2.56 | awaiting T+20 | — | $2.59 (+1.17%) |
Oct 22, 2026 5d ago | Press Release | $2.60 | awaiting T+20 | — | $2.59 (−0.38%) |
Sep 23, 2026 4w ago | 8-K | $2.48 $2.49 | ▲ +0.40% | ▼ −0.28% | $2.59 (+4.44%) |
Aug 5, 2026 11w ago | 8-K | $3.04 $2.93 | ▼ −3.62% | ▼ −3.02% | $2.59 (−14.80%) |
Aug 5, 2026 11w ago | Press Release | $3.04 $2.93 | ▼ −3.62% | ▼ −3.02% | $2.59 (−14.80%) |
Jul 16, 2026 14w ago | 25-NSE | $2.78 $2.99 | ▲ +7.55% | ▲ +3.94% | $2.59 (−6.83%) |
Jul 14, 2026 15w ago | 8-K / PRESS-RELEASE | $2.65 $3.12 | ▲ +17.74% | ▲ +15.24% | $2.59 (−2.26%) |
May 26, 2026 22w ago | 8-K | — | awaiting T+20 | — | — |
May 6, 2026 24w ago | 8-K | — | awaiting T+20 | — | — |
May 6, 2026 24w ago | Press Release | $2.87 $2.59 | ▲ +9.76% | ▲ +12.54% | $2.59 (+9.76%) |
US Market Status
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