Operating margins remain highly unstable, swinging from a negative 20.7% in 2024Q4 to a positive 16.5% in 2025Q2, indicating limited efficiency in managing overhead costs.
Holley Inc. (HLLY) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 613.15M | 613.51M | 602.22M | 659.7M | 688.41M | 692.85M | 504.18M | 368.66M |
| Revenue Growth % | 3.26% | 1.87% | -8.71% | -4.17% | -0.64% | 37.42% | 36.76% | - |
| Cost of Goods Sold | 356.14M | 361.06M | 355.48M | 403.62M | 434.76M | 406.04M | 295.94M | 219.88M |
| COGS % of Revenue | - | 58.85% | 59.03% | 61.18% | 63.15% | 58.6% | 58.7% | 59.64% |
| Gross Profit | 257M | 252.46M | 246.74M | 256.09M | 253.66M | 286.81M | 208.24M | 148.78M |
| Gross Margin % | 41.92% | 41.15% | 40.97% | 38.82% | 36.85% | 41.4% | 41.3% | 40.36% |
| Gross Profit Growth % | - | 2.32% | -3.65% | 0.96% | -11.56% | 37.73% | 39.97% | - |
| Operating Expenses | 199.5M | 164.96M | 232.08M | 162.05M | 202.92M | 209.28M | 122.79M | 102.7M |
| OpEx % of Revenue | - | 26.89% | 38.54% | 24.56% | 29.48% | 30.21% | 24.35% | 27.86% |
| Selling, General & Admin | 118.84M | 146.13M | 132.15M | 120.24M | 150.73M | 116.79M | 70.88M | 62.37M |
| SG&A % of Revenue | - | 23.82% | 21.94% | 18.23% | 21.89% | 16.86% | 14.06% | 16.92% |
| Research & Development | 17.39M | 18.83M | 18.71M | 23.84M | 29.08M | 28.28M | 23.48M | 20.63M |
| R&D % of Revenue | - | 3.07% | 3.11% | 3.61% | 4.22% | 4.08% | 4.66% | 5.6% |
| Other Operating Expenses | 2.41M | 0 | 81.22M | 17.96M | 23.11M | 64.21M | 28.43M | 19.7M |
| Operating Income | 57.5M | 87.49M | 14.67M | 94.04M | 50.74M | 77.52M | 85.45M | 46.07M |
| Operating Margin % | 9.38% | 14.26% | 2.44% | 14.25% | 7.37% | 11.19% | 16.95% | 12.5% |
| Operating Income Growth % | - | 496.5% | -84.4% | 85.33% | -34.55% | -9.28% | 85.47% | - |
| EBITDA | 85.9M | 110.98M | 39.1M | 118.9M | 81.2M | 103.05M | 104.42M | 65.36M |
| EBITDA Margin % | 14.01% | 18.09% | 6.49% | 18.02% | 11.79% | 14.87% | 20.71% | 17.73% |
| EBITDA Growth % | 76.81% | 183.8% | -67.11% | 46.44% | -21.2% | -1.32% | 59.77% | - |
| D&A (Non-Cash Add-back) | 28.4M | 23.48M | 24.43M | 24.86M | 30.46M | 25.53M | 18.97M | 19.28M |
| EBIT | 56.75M | 80.47M | 82.27M | 96.68M | 118.49M | 126.94M | 85.45M | 55.48M |
| Net Interest Income | -40.87M | -51.83M | -50.69M | -60.75M | -40.23M | -39.13M | -43.77M | -50.39M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 40.87M | 51.83M | 50.69M | 60.75M | 40.23M | 39.13M | 43.77M | 50.39M |
| Other Income/Expense | -41.62M | -58.86M | -40.93M | -66.46M | 27.52M | -94.23M | -43.77M | -40.64M |
| Pretax Income | 15.88M | 28.63M | -26.26M | 27.58M | 78.27M | -16.71M | 41.68M | 5.43M |
| Pretax Margin % | 2.59% | 4.67% | -4.36% | 4.18% | 11.37% | -2.41% | 8.27% | 1.47% |
| Income Tax | 5.56M | 9.46M | -3.02M | 8.4M | 4.49M | 10.43M | 8.83M | 4.87M |
| Effective Tax Rate % | 35% | 33.03% | 11.52% | 30.45% | 5.74% | -62.41% | 21.17% | 89.68% |
| Net Income | 10.32M | 19.18M | -23.23M | 19.18M | 73.77M | -27.14M | 32.86M | 561K |
| Net Margin % | 1.68% | 3.13% | -3.86% | 2.91% | 10.72% | -3.92% | 6.52% | 0.15% |
| Net Income Growth % | 133.97% | 182.53% | -221.14% | -74% | 371.84% | -182.6% | 5756.86% | - |
| Net Income (Continuing) | 10.32M | 19.18M | -23.23M | 19.18M | 73.77M | -27.14M | 32.86M | 561K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.09 | 0.16 | -0.20 | 0.16 | 0.63 | -0.30 | 0.49 | 0.00 |
| EPS Growth % | 132.66% | 180% | -225% | -74.6% | 310% | -161.22% | - | - |
| EPS (Basic) | - | 0.16 | -0.20 | 0.16 | 0.63 | -0.30 | 0.49 | 0.00 |
| Diluted Shares Outstanding | 120.28M | 120.07M | 118.44M | 118.51M | 117.25M | 89.96M | 67.67M | 117.99M |
| Basic Shares Outstanding | 120.28M | 119.21M | 118.44M | 119.88M | 116.76M | 89.96M | 67.67M | 117.99M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying HLLY stock.
For fiscal year 2025, Holley Inc. (HLLY) reported total revenue of $613.5M. This represents a 66.4% increase compared to $368.7M in 2019.
Holley Inc. (HLLY) is profitable, generating $19.2M in net income for the fiscal year ending 2025 with a net profit margin of 3.1%.
Holley Inc. (HLLY) reported an operating income of $87.5M, resulting in an operating profit margin of 14.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Holley Inc. (HLLY) generated $252.5M in gross profit for the year, representing a gross profit margin of 41.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Inventory and channel destocking
Metrics are mathematically derived from official filings.
Revenue Growth Remains Highly Volatile
As reported in recent financial filings, HLLY's revenue trajectory exhibits significant volatility, with quarterly growth rates fluctuating between a 14.4% decline and an 11.0% increase, suggesting that the company's top-line performance is heavily influenced by cyclical channel inventory adjustments rather than consistent organic demand expansion.
The inconsistent revenue performance appears to reflect the company's sensitivity to wholesale channel destocking cycles. Investors should monitor whether the recent leadership transition can stabilize these fluctuations or if the business remains structurally tethered to the erratic purchasing patterns of its primary retail partners.
Gross Margin Resilience Amidst Fluctuations
Based on the provided income statement data, Holley maintains a gross margin profile that generally hovers around 41%, demonstrating a degree of pricing power despite the significant quarterly variance observed in 2024Q4, which saw margins spike to 51.5% before normalizing in subsequent periods.
This margin stability suggests that the company's proprietary EFI software and brand ecosystem provide a buffer against commodity cost pressures. However, the periodic compression in gross margins warrants further investigation into whether promotional activity or product mix shifts are being used to clear excess inventory from the channel.
Operating Leverage Remains Under Pressure
According to the historical income statement data, HLLY's operating income has struggled to scale consistently with gross profit, as evidenced by operating margins that swung from a negative 20.7% in 2024Q4 to a positive 16.5% in 2025Q2, indicating limited efficiency in managing overhead costs.
The lack of consistent operating leverage suggests that the company's cost structure remains heavily burdened by fixed expenses that do not align well with revenue volatility. This may indicate that the current operational footprint is oversized for the present level of demand, necessitating a more disciplined approach to SG&A management.
Earnings Quality Obscured by Volatility
As indicated by the reported financial figures, HLLY's net income quality appears inconsistent, with significant quarterly swings including a net loss of $37.8 million in 2024Q4, which suggests that non-operating items and potential restructuring costs are creating a disconnect between core operational performance and bottom-line results.
The presence of stock-based compensation and periodic net losses complicates the assessment of true earnings power. Investors should be cautious of relying on EPS metrics until the company demonstrates a sustained period of profitability that is not reliant on accounting adjustments or non-recurring charges.