The EPS and revenue miss combined with lowered top-line guidance is a clear negative signal. However, maintained EBITDA guidance and margin expansion suggest cost discipline is working. Watch for Q2 order commentary — management noted improving distributor inventory trends exiting Q1.
Price Chart
Executive Summary
Holley reported Q1 2026 EPS of $0.04, a 27.3% miss vs $0.06 consensus, on revenue of $147.3M (-3.7% YoY) that missed the $154.0M estimate. Despite the miss, the company maintained its full-year Adjusted EBITDA outlook of $127-137M while lowering revenue guidance by $15M to $610-640M due to portfolio optimization, and highlighted margin expansion (Adjusted EBITDA margin +71bps to 18.5%). The stock will likely trade down on the EPS/revenue miss and lowered top-line guidance, partially offset by maintained EBITDA guidance and cost control narrative.
Key Financial Metrics
Key Facts
- Q1 2026 EPS $0.04 vs consensus $0.06 (miss of -27.3%)
- Q1 2026 revenue $147.3M vs consensus $154.0M (miss of -4.3%)
- Revenue declined 3.7% YoY from $153.0M
- Net income improved to $7.3M from $2.8M YoY, but driven by lower interest expense (-36.9%) and non-operating items, not operations
- Adjusted EBITDA flat at $27.3M YoY; margin expanded 71bps to 18.5%
- Full-year 2026 revenue guidance lowered by $15M to $610-640M due to portfolio optimization; core business growth rate unchanged at ~2-7%
- Full-year Adjusted EBITDA guidance maintained at $127-137M
- Free cash flow improved to -$6.3M from -$10.8M YoY, still negative
- Bank-adjusted EBITDA leverage ratio increased to 3.84x from 3.75x at year-end 2025
- Portfolio optimization expected to reduce SKUs by >11,000 and generate >$15M in incremental cash
Financial Impact
EPS miss of $0.02 (27.3% below consensus) and revenue miss of $6.7M (4.3% below consensus); full-year revenue guidance cut by $15M
Risk Factors
- Revenue guidance cut signals portfolio optimization may pressure near-term top line more than expected
- Leverage ratio increased to 3.84x, reducing financial flexibility
- Free cash flow remains negative at -$6.3M, limiting ability to de-lever or invest organically
- Tariff exposure and macroeconomic headwinds could further pressure demand
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3288709 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | Press Release | $2.56 | awaiting T+20 | — | $2.54 (−0.78%) |
Oct 22, 2026 5d ago | Press Release | $2.60 | awaiting T+20 | — | $2.54 (−2.31%) |
Sep 23, 2026 4w ago | 8-K | $2.48 $2.49 | ▲ +0.40% | ▼ −0.28% | $2.54 (+2.42%) |
Aug 5, 2026 11w ago | 8-K | $3.04 $2.93 | ▼ −3.62% | ▼ −3.02% | $2.54 (−16.45%) |
Aug 5, 2026 11w ago | Press Release | $3.04 $2.93 | ▼ −3.62% | ▼ −3.02% | $2.54 (−16.45%) |
Jul 16, 2026 14w ago | 25-NSE | $2.78 $2.99 | ▲ +7.55% | ▲ +3.94% | $2.54 (−8.63%) |
Jul 14, 2026 15w ago | 8-K / PRESS-RELEASE | $2.65 $3.12 | ▲ +17.74% | ▲ +15.24% | $2.54 (−4.15%) |
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% | $2.54 (+11.50%) |
US Market Status
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