Cash conversion efficiency is inconsistent, highlighted by an operating cash flow to net income ratio that plummeted to a negative 9.22 in 2025Q3, reflecting significant working capital volatility.
Holley Inc. (HLLY) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 57.84M | 46.22M | 46.9M | 88.09M | 12.31M | 21.58M | 88.41M | 9.42M |
| Operating CF Margin % | - | 7.53% | 7.79% | 13.35% | 1.79% | 3.12% | 17.54% | 2.55% |
| Operating CF Growth % | 654.15% | -1.45% | -46.76% | 615.5% | -42.96% | -75.59% | 838.77% | - |
| Net Income | 10.32M | 19.18M | -23.23M | 19.18M | 73.77M | -27.14M | 32.86M | 561K |
| Depreciation & Amortization | 30M | 28.88M | 29.67M | 30.34M | 30.46M | 25.53M | 18.97M | 19.28M |
| Stock-Based Compensation | 8.56M | 8.16M | 5.17M | 7.29M | 24.39M | 4.96M | 487K | 437K |
| Deferred Taxes | 10.89M | 9.15M | -16.15M | -4.85M | -11.65M | -66K | 6.75M | -11.49M |
| Other Non-Cash Items | 28.66M | 12.44M | 60.56M | 11.28M | -48.35M | 62.58M | 8.63M | 6.91M |
| Working Capital Changes | -30.59M | -31.59M | -9.11M | 24.84M | -56.31M | -44.28M | 20.72M | -6.28M |
| Change in Receivables | -9.28M | -21.41M | 10.76M | -2.28M | 3.78M | 464K | -11.35M | 2.11M |
| Change in Inventory | -12.31M | -17.08M | -16.56M | 38.2M | -58.41M | -45.07M | 22.01M | -7.06M |
| Change in Payables | 7.23M | 12.86M | 1.23M | -1.63M | -740K | 8.73M | 8.4M | 181K |
| Cash from Investing | -17.36M | -32.23M | 2.02M | -4.45M | -25.04M | -134.09M | -165.62M | -14.48M |
| Capital Expenditures | -21.29M | -32.55M | -6.8M | -5.93M | -13.59M | -15.23M | -9.48M | -8.54M |
| CapEx % of Revenue | 3.47% | 5.31% | 1.13% | 0.9% | 1.97% | 2.2% | 1.88% | 2.32% |
| Acquisitions | -2.78M | 322K | 7.1M | 0 | -12.34M | -119.22M | -156.83M | -5.94M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 6.71M | 0 | 1.73M | 1.48M | 888K | 364K | 698K | 0 |
| Cash from Financing | -34.28M | -32.61M | -34.6M | -69.01M | 2.85M | 77.16M | 140.54M | 2.43M |
| Debt Issued (Net) | -30.14M | -32.11M | -32.44M | -66.04M | 3.52M | -32.53M | 145.35M | 2.7M |
| Equity Issued (Net) | -2M | -847K | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -2.14M | 343K | -2.16M | -2.97M | -667K | 109.69M | -4.81M | -267K |
| Net Change in Cash | 5.18M | -18.86M | 15.01M | 14.93M | -10.18M | -35.35M | 63.34M | -2.63M |
| Free Cash Flow | 36.54M | 13.67M | 40.09M | 82.16M | -1.28M | 6.35M | 78.93M | 876K |
| FCF Margin % | 5.96% | 2.23% | 6.66% | 12.45% | -0.19% | 0.92% | 15.66% | 0.24% |
| FCF Growth % | 58.56% | -65.91% | -51.2% | 6528.64% | -120.13% | -91.95% | 8910.27% | - |
| FCF per Share | 0.30 | 0.11 | 0.34 | 0.69 | -0.01 | 0.07 | 1.17 | 0.01 |
| FCF Conversion (FCF/Net Income) | 3.54x | 2.41x | -2.02x | 4.59x | 0.17x | -0.80x | 2.69x | 16.79x |
| Interest Paid | 47.5M | 46.6M | 52.16M | 64.69M | 36.87M | 38.07M | 39.95M | 49.78M |
| Taxes Paid | 5.94M | 10.43M | 11.14M | 16.04M | 6.83M | 10.65M | 3.24M | 4.43M |
Quick answers to the most common questions about buying HLLY stock.
Holley Inc. (HLLY) generated $46.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Holley Inc. (HLLY) generated $13.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Holley Inc. (HLLY) spent $32.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Working capital volatility
Metrics are mathematically derived from official filings.
Earnings Quality Disconnected From Cash
As reported in recent financial statements, HLLY's operating cash flow to net income ratio has exhibited extreme volatility, ranging from a high of 25.98 in 2023Q4 to a negative 9.22 in 2025Q3, suggesting that accounting earnings are frequently decoupled from the actual cash generated by core operations.
The wide variance between net income and operating cash flow indicates that non-cash charges and significant working capital swings are obscuring the underlying cash-generating capability of the business. Investors should monitor whether this disconnect is a structural feature of the company's inventory-heavy business model or a temporary byproduct of recent operational restructuring.
Free Cash Flow Margin Instability
Based on the company's quarterly filings, free cash flow margins have fluctuated wildly between a negative 10.2% in 2025Q1 and a positive 19.1% in 2023Q4, highlighting a lack of consistent cash conversion that complicates the assessment of the firm's long-term self-funding capacity.
The inability to maintain positive free cash flow across consecutive quarters suggests that the company's capital requirements and working capital needs are highly sensitive to cyclical demand shifts. This inconsistency may indicate that the business requires significant cash buffers to navigate periods of inventory destocking and seasonal revenue troughs.
Rising Capital Intensity Warrants Scrutiny
According to historical data, HLLY's capital expenditure as a percentage of revenue has trended upward from 0.8% in early 2024 to 4.8% in 2026Q1, suggesting that the company is increasingly forced to reinvest in its manufacturing base to maintain its competitive position in the performance aftermarket.
The recent escalation in capital intensity may reflect a shift toward more complex electronic component manufacturing, which requires higher ongoing investment than traditional mechanical parts. Analysts should investigate whether this trend represents necessary growth-oriented investment or an increasing maintenance burden required to keep aging production lines operational.
Working Capital Swings Drive Volatility
As evidenced by the quarterly cash flow statements, working capital changes have been a primary driver of cash flow variance, with swings as large as a $25.1 million outflow in 2025Q1, indicating that inventory management remains a significant challenge for the company's liquidity profile.
The recurring negative impact of working capital on operating cash flow suggests that the company is struggling to align its production and procurement cycles with actual retail sell-through. This pattern appears to confirm that channel inventory normalization is not merely a revenue issue but a persistent drag on the firm's ability to convert sales into cash.