Harley-Davidson, Inc. (HOG) Income Statement

Revenue has declined from roughly $1.6B in Q2 2024 to about $1.1B in the most recent quarter, with year-over-year growth rates mostly between -11.8% and -27.8% across recent periods. This pattern may indicate that wholesale volume is tracking below prior-year levels, and it warrants monitoring to determine whether the decline reflects cyclical cooling or a more durable shift in demand. Sustained top-line weakness would challenge the premise that brand resilience alone can offset volume losses.

Gross margin has fluctuated widely, from roughly 37-38% in mid-2024 to negative territory in Q4 2025, indicating high sensitivity to volume and pricing mix. The current recovery to about 26% suggests cost and mix actions may be partially offsetting volume deleverage, but the gap to prior peak levels implies the structural margin floor has not been fully re-established. Margin trajectory appears to be the key variable for assessing whether the brand premium remains intact.

Because SG&A is largely fixed in the short run, revenue contraction appears to translate disproportionately into operating income declines, consistent with the swing from a 14.9% operating margin in Q2 2024 to 3.4% most recently. This suggests high operating leverage to volume, which amplifies both downside in weak quarters and upside in recoveries. Analysts should consider whether management can flex overhead materially if top-line weakness persists.