Holley (HLLY) AI Stock Analysis

• Market Cap: $342.22M
• Dividend Yield: N/A
• Average Volume (3M): 452.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -7.27%
• EPS Growth: -233.07%
• Country: US
• Employees: 1,467
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.03
• Shares Outstanding: 120,499,664
• 10 Day Avg. Volume: 474,895
• 30 Day Avg. Volume: 452,119
• PEG Ratio: 0.07
• Price to Book (P/B): 0.85
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 8.92
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $4.75
• Price Target Upside: 31.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $3.50 ▼(-3.31% Downside)

Holley's overall stock score reflects a mix of financial challenges and positive operational developments. The most significant factor is the financial performance, which is under pressure due to declining revenues and high leverage. However, the positive earnings call, indicating growth and strategic improvements, provides a counterbalance. Technical indicators suggest a cautious outlook, while valuation remains a concern due to negative profitability.

Positive Factors

Core Business Growth

Consistent growth in core business operations indicates strong market demand and effective strategic execution, supporting long-term revenue stability.

Debt Reduction

Effective debt reduction enhances financial stability, reduces interest burden, and increases financial flexibility for future investments.

Gross Margin Improvement

Improved gross margins reflect strong pricing discipline and operational efficiency, which can lead to enhanced profitability and competitive positioning.

Negative Factors

Declining Revenue

A declining revenue trend indicates potential market challenges and could impact future growth and profitability if not addressed.

High Leverage

High leverage increases financial risk and can limit the company's ability to invest in growth opportunities or weather economic downturns.

Negative Net Profit Margin

A negative net profit margin suggests ongoing profitability challenges, which could hinder long-term financial health and shareholder returns.

Holley Business Overview & Revenue Model

Company Description

Holley Inc. designs, manufactures, and markets automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. The company's products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products, and exhaust products as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers wheels, chassis and suspension products, helmets, head and neck restraints, seat belts, firesuits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, APR, MSD, Flowmaster, Powerteq, Accel, and Simpson brands to retailers directly, as well as through distributors and online channel. The company was founded in 1903 and is headquartered in Bowling Green, Kentucky.

How the Company Makes Money

Holley generates revenue through multiple channels, primarily by selling a diverse range of automotive performance products directly to consumers and through retail partnerships. The company benefits from a strong brand reputation and a loyal customer base, which allows it to command premium pricing for its products. Key revenue streams include sales of carburetors, fuel management systems, and exhaust products, as well as related accessories and performance parts. Holley also engages in strategic partnerships with automotive retailers and online platforms, enhancing its distribution capabilities and market presence. Additionally, Holley capitalizes on revenue from sponsorships and events within the automotive racing community, further driving brand awareness and sales.

Holley Financial Statement Overview

Summary

Holley's financial performance is under pressure with declining revenues and profitability challenges. The balance sheet is burdened by high leverage, increasing financial risk. Cash flow improvements are a positive sign, but reliance on cash flow over profitability is concerning. The company needs to address revenue growth and operational efficiency to improve its financial health.

Income Statement

Holley's income statement shows a declining revenue trend with a significant drop in the TTM period. The gross profit margin is relatively stable, but the net profit margin is negative, indicating losses. EBIT and EBITDA margins have decreased over time, reflecting operational challenges. The revenue growth rate is negative, highlighting a contraction in sales.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage, which poses financial risk. The return on equity has turned negative in the TTM period, suggesting inefficiencies in generating returns for shareholders. The equity ratio is moderate, providing some stability in asset financing.

Cash Flow

Cash flow analysis shows a strong free cash flow growth in the TTM period, recovering from previous declines. The operating cash flow to net income ratio is positive, indicating some cash generation capability despite net losses. However, the free cash flow to net income ratio suggests reliance on cash flow rather than profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	598.13M	602.22M	659.70M	688.41M	692.85M	504.18M
Gross Profit	264.24M	238.54M	256.09M	253.66M	286.81M	208.24M
EBITDA	52.34M	55.20M	117.51M	148.95M	152.47M	104.42M
Net Income	-24.91M	-23.23M	19.18M	73.77M	-27.14M	32.86M
Balance Sheet
Total Assets	1.17B	1.13B	1.20B	1.25B	1.19B	1.07B
Cash, Cash Equivalents and Short-Term Investments	50.72M	56.09M	41.08M	26.15M	36.33M	71.67M
Total Debt	0.00	557.91M	615.46M	680.67M	645.55M	674.99M
Total Liabilities	725.38M	712.17M	762.19M	833.65M	888.57M	824.95M
Stockholders Equity	439.74M	421.15M	441.15M	415.99M	304.49M	240.38M
Cash Flow
Free Cash Flow	34.02M	40.09M	82.16M	-390.00K	6.71M	78.93M
Operating Cash Flow	44.19M	46.90M	88.09M	12.31M	21.58M	88.41M
Investing Cash Flow	-21.66M	2.02M	-4.45M	-25.04M	-134.09M	-165.62M
Financing Cash Flow	-23.77M	-34.60M	-69.01M	2.85M	77.16M	140.54M

Holley Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLLY, the sentiment is Positive. The current price of 3.62 is above the 20-day moving average (MA) of 2.95, above the 50-day MA of 3.17, and above the 200-day MA of 2.66, indicating a bullish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 68.58 is Neutral, neither overbought nor oversold. The STOCH value of 33.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HLLY.

Holley Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRT	71 Outperform	$283.76M	11.72	10.85%	―	6.83%	46.38%
GTX	71 Outperform	$3.40B	11.10	―	1.21%	-1.09%	56.16%
MPAA	66 Neutral	$343.11M	220.13	0.63%	―	6.59%	―
SMP	65 Neutral	$824.09M	12.19	10.49%	3.29%	23.96%	11.01%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MLR	61 Neutral	$440.91M	14.85	7.39%	1.96%	-36.91%	-56.72%
HLLY	57 Neutral	$342.22M	―	-6.75%	―	-7.27%	-233.07%

Holley Corporate Events

Holley Inc. Reports Continued Growth in Q3 2025

Holley Performance Brands is a leading company in the automotive aftermarket industry, specializing in high-performance products for vehicle enthusiasts across various consumer verticals. In its third-quarter report for 2025, Holley Inc. showcased a continuation of its growth trajectory, marking the third consecutive quarter of core business net sales growth. The company reported a 3.2% increase in net sales, reaching $138.4 million, and a significant improvement in net loss, reducing it to $0.8 million from $6.3 million the previous year. Holley’s strategic initiatives have led to a 6.4% growth in core business net sales and a notable improvement in free cash flow, which rose to $5.5 million from a negative $2.1 million last year. The company also achieved an adjusted EBITDA of $27.1 million, up from $22.1 million, reflecting strong operational performance. Looking ahead, Holley Inc. remains optimistic about its future, with plans to increase revenue and adjusted EBITDA guidance for the full year, driven by effective strategic execution and continued demand for its products.

Holley Announces $10M Debt Paydown for Growth

On October 27, 2025, Holley Performance Brands announced a $10 million paydown of its first lien term loan facility, marking a total debt reduction of $100 million since September 2023. This proactive financial strategy, funded entirely by free cash flow, is part of Holley’s ongoing transformation efforts over the past two years to strengthen its balance sheet, increase financial flexibility, and position the company for sustainable growth. The debt repayments are expected to result in up to $4 million in annualized net interest savings, reflecting Holley’s disciplined operations and strong cash flow generation, which reinforce investor confidence and shareholder value.

The most recent analyst rating on (HLLY) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Holley stock, see the HLLY Stock Forecast page.

Holley Inc. Completes Secondary Stock Offering

On September 10, 2025, Holley Inc. entered into an underwriting agreement with Sentinel Capital Partners and several underwriters for a secondary offering of 14,000,000 shares of common stock at $2.75 per share, which closed on September 12, 2025. The company did not receive any proceeds from this offering, indicating a strategic move by the selling stockholder, Sentinel Capital Partners, rather than a direct capital raise for Holley Inc.

The most recent analyst rating on (HLLY) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Holley stock, see the HLLY Stock Forecast page.

Holley Announces $15M Debt Reduction Initiative

On August 27, 2025, Holley Performance Brands announced a $15 million reduction in its first lien term loan facility, marking a total debt repayment of $90 million since September 2023. This strategic move underscores Holley’s commitment to strengthening its balance sheet and enhancing financial flexibility, with the company expecting to achieve its lowest leverage ratio in over three years by year-end, thus building investor confidence and positioning for sustainable growth.

The most recent analyst rating on (HLLY) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Holley stock, see the HLLY Stock Forecast page.

Holley Approves Equity Awards for Key Executives

On August 12, 2025, Holley Inc.’s Compensation and Talent Committee approved one-time grants of restricted stock units (RSUs) and performance stock units (PSUs) to key executives, including the CEO, CFO, and General Counsel, under the company’s 2021 Omnibus Incentive Plan. These equity awards are designed to align the interests of executives with company performance and provide incentives for continued employment. Additionally, the company entered into Change in Control Severance Letter Agreements with the CFO and General Counsel, extending severance benefits in the event of a change in control, which underscores the company’s commitment to retaining key leadership during potential transitions.

The most recent analyst rating on (HLLY) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Holley stock, see the HLLY Stock Forecast page.

Holley Inc. Earnings Call: Record Cash Flow Amid Challenges

Holley Inc. recently held its earnings call, showcasing a mixed sentiment with notable achievements and ongoing challenges. The company reported record free cash flow and growth in its core business, alongside effective tariff mitigation strategies. However, declining EBITDA margins and lower net income were points of concern. Despite these hurdles, Holley’s strong performance in direct-to-consumer and B2B channels, coupled with proactive strategies in innovation and pricing, paints a positive outlook for the future.