# Holley Inc. (HLLY) Informational only - not investment advice. CIK: 0001822928 SIC: 3714 Motor Vehicle Parts & Accessories SIC breadcrumb: [Manufacturing](/division/D/) > [Transportation Equipment](/major-group/37/) > [SIC 3714 Motor Vehicle Parts & Accessories](/industry/3714/) Latest 10-K filed: 2026-03-16 SEC page: https://www.sec.gov/edgar/browse/?CIK=1822928 Filing source: https://www.sec.gov/Archives/edgar/data/1822928/000162828026018218/hlly-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-03-16 · accession 0001628280-26-018218 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001822928.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 613,514,000 USD | 2025 | verified | | Net income | 19,175,000 USD | 2025 | verified | | Assets | 1,163,953,000 USD | 2025 | verified | | Free cash flow | 33,899,000 USD | 2025 | computed | | Net margin | 3.13% | 2025 | computed | | Operating margin | 13.44% | 2025 | computed | | Revenue YoY | +1.87% | 2025 | computed | | ROE | 4.27% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | HLLY | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 3.1% | 3.3% | 45 | 23 | | Operating margin | 13.4% | 7.1% | 79 | 20 | | Revenue growth | 1.9% | 3.3% | 35 | 24 | | FCF margin | 5.5% | 5.4% | 55 | 23 | | ROE | 4.3% | 8.6% | 24 | 22 | | ROA | 1.6% | 3.2% | 35 | 24 | | Liabilities / equity | 1.59 | 1.60 | 48 | 22 | | Current ratio | 2.75 | 2.01 | 74 | 24 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3714 Motor Vehicle Parts & Accessories, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 613514000 | USD | 2025 | 2026-03-16 | | Net income | 19175000 | USD | 2025 | 2026-03-16 | | Assets | 1163953000 | USD | 2025 | 2026-03-16 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-16. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001822928.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 368,663,000 | 504,179,000 | 692,847,000 | 688,415,000 | 659,704,000 | 602,224,000 | 613,514,000 | | Net income | | 561,000 | 32,857,000 | -27,139,000 | 73,774,000 | 19,180,000 | -23,235,000 | 19,175,000 | | Operating income | | 46,074,000 | 85,455,000 | 77,523,000 | 50,742,000 | 94,038,000 | 14,668,000 | 82,481,000 | | Gross profit | | 148,779,000 | 208,244,000 | 286,807,000 | 253,658,000 | 256,089,000 | 238,544,000 | 266,235,000 | | Diluted EPS | | 0.01 | 0.49 | -0.30 | 0.14 | 0.16 | -0.20 | 0.16 | | Operating cash flow | | 9,418,000 | 88,413,000 | 21,583,000 | 12,312,000 | 88,092,000 | 46,899,000 | 46,220,000 | | Capital expenditures | | 7,421,000 | 9,433,000 | 15,233,000 | 13,590,000 | 5,934,000 | 6,804,000 | 12,321,000 | | Assets | | | 1,065,330,000 | 1,193,056,000 | 1,249,642,000 | 1,203,343,000 | 1,133,320,000 | 1,163,953,000 | | Liabilities | | | 824,949,000 | 888,569,000 | 833,652,000 | 762,192,000 | 712,168,000 | 715,028,000 | | Stockholders' equity | 204,806,000 | 205,414,000 | 240,381,000 | 304,487,000 | 415,990,000 | 441,151,000 | 421,152,000 | 448,925,000 | | Cash and cash equivalents | 10,963,000 | 8,335,000 | 71,674,000 | 36,325,000 | 26,150,000 | 41,081,000 | 56,087,000 | 37,231,000 | | Free cash flow | | 1,997,000 | 78,980,000 | 6,350,000 | -1,278,000 | 82,158,000 | 40,095,000 | 33,899,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | 0.15% | 6.52% | -3.92% | 10.72% | 2.91% | -3.86% | 3.13% | | Operating margin | | 12.50% | 16.95% | 11.19% | 7.37% | 14.25% | 2.44% | 13.44% | | Return on equity | | 0.27% | 13.67% | -8.91% | 17.73% | 4.35% | -5.52% | 4.27% | | Return on assets | | | 3.08% | -2.27% | 5.90% | 1.59% | -2.05% | 1.65% | | Liabilities / equity | | | 3.43 | 2.92 | 2.00 | 1.73 | 1.69 | 1.59 | | Current ratio | | | 3.15 | 3.18 | 3.21 | 3.17 | 3.12 | 2.75 | ## As-reported value updates 4 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/HLLY/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001822928.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-10-02 | | | 0.27 | reported discrete quarter | | 2023-Q1 | 2023-04-02 | | | 0.04 | reported discrete quarter | | 2023-Q2 | 2023-07-02 | | 12,979,000 | 0.11 | reported discrete quarter | | 2023-Q3 | 2023-10-01 | 156,530,000 | 752,000 | 0.01 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 155,707,000 | 1,202,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 158,636,000 | 3,730,000 | 0.03 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 169,496,000 | 17,105,000 | 0.14 | reported discrete quarter | | 2024-Q3 | 2024-09-29 | 134,038,000 | -6,288,000 | -0.05 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 140,054,000 | -37,782,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-30 | 153,044,000 | 2,817,000 | 0.02 | reported discrete quarter | | 2025-Q2 | 2025-06-29 | 166,661,000 | 10,863,000 | 0.09 | reported discrete quarter | | 2025-Q3 | 2025-09-28 | 138,373,000 | -806,000 | -0.01 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 155,436,000 | | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-29 | 147,330,000 | 7,257,000 | 0.06 | reported discrete quarter | | 2026-Q2 | 2026-06-28 | 172,007,000 | -2,430,000 | -0.02 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from HLLY's latest 10-K: [/company/HLLY/business/](/company/HLLY/business/). ## Risk Factors Verbatim Item 1A Risk Factors from HLLY's latest 10-K: [/company/HLLY/risk-factors/](/company/HLLY/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1822928/000182292826000068/hlly-20260628.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-08-05 Report date: 2026-06-28 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Unless the context otherwise requires or indicates, references to “Holley,” “we,” “us,” “our”, and “the Company” in this section are to the business and operations of Holley Inc. and its subsidiaries. The following discussion and analysis should be read in conjunction with Holley’s condensed consolidated financial statements and related notes thereto included in this Quarterly Report on Form 10-Q. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties, and assumptions that could cause Holley’s actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed herein and under the caption, “Cautionary Note Regarding Forward-Looking Statements.” Overview We are a designer, marketer, and manufacturer of high-performance automotive aftermarket products serving car and truck enthusiasts, with sales, processing, and distribution facilities reaching most major markets in the United States, Canada, Europe, and China. Holley designs, markets, manufactures and distributes a diversified line of performance automotive products including fuel injection systems, tuners, exhaust products, carburetors, safety equipment and various other performance automotive products. Our products are designed to enhance street, off-road, recreational and competitive vehicle performance and safety. Central to our business and growth strategy is a commitment to innovation. We have a history of developing innovative products, including new additions to existing product families, expansions of product lines, accessory offerings, and ventures into entirely new categories. We believe this strategic approach allows us to continually adapt to evolving consumer needs. Furthermore, strategic acquisitions have played a significant role in our evolution. These acquisitions have enabled us to expand our brand portfolio, enter new product categories and consumer segments, enhance DTC scale and connection, increase market share in existing product categories, and realize valuable revenue and cost synergies. While we anticipate continued organic growth, we intend to continue evaluating opportunities for strategic acquisitions that align with our current business, expanding our reach within the target market. Factors Affecting our Performance We believe that our performance and future success depend on a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed above, under the caption, "Cautionary Note Regarding Forward-Looking Statements," in this Quarterly Report on Form 10-Q, under the caption, “Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on March 16, 2026, and in our subsequent filings with the SEC. Business Environment Our business and results of operations, financial condition, and liquidity are impacted by broad economic conditions including inflation, labor shortages, disruption of the supply chain, and tariffs, as well as by geopolitical events, including military conflicts (including the conflict in Ukraine, the conflict in the Middle East, and the possible expansion of such conflicts). Our operations have been adversely impacted, and may continue to be adversely impacted, by inflationary pressures primarily related to transportation, labor and component costs. In response to the global supply chain volatility and inflationary impacts, we have attempted to minimize potential adverse impacts on our business with cost savings initiatives, price increases to customers, and by increasing inventory levels of certain products and working closely with our suppliers and customers to minimize disruptions in delivering products to customers. Our profitability has been, and may continue to be, adversely affected by constrained consumer demand and a shift in sales mix to lower-margin products, which is offset by our cost cutting and operating efficiency gains. Should the ongoing macroeconomic conditions not improve, or worsen, or if our attempts to mitigate the impact on our supply chain, operations and costs is not successful, our business, results of operations and financial condition may be adversely affected. Impact of Tariffs and International Trade Policy on Our Operations The United States government has increased tariffs on certain goods imported from certain countries and regions, including China, Canada, Mexico, and the European Union. In response, some foreign governments 31 Table of Contents implemented retaliatory measures. These developments introduced new complexities to global supply chains. As discussed in our quarterly report on Form 10-Q for the quarter ended March 29, 2026, we believe Holley's business model and sourcing strategies have positioned us to manage these challenges effectively and we have proactively developed and implemented plans to mitigate their impact. On February 20, 2026, the U.S. Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”). During the 26-week period ended June 28, 2026, we received approximately $11,057 as a refund on such tariffs, of which $1,719 was recorded as a reduction of inventory, $8,863 was recorded as other income and $475 was recorded as interest income. We continue to monitor and evaluate these developments in order to analyze their impact on our business and identify possible actions to minimize adverse effects. The ultimate availability, timing and amount of any other potential refunds on such tariffs, and the extent and duration of these tariffs, as well as their broader impact on macroeconomic conditions and our business, remain uncertain and will depend on a variety of factors outside of our control. Nevertheless, we remain committed to optimizing our operations, managing costs and leveraging our diversified supply chain to minimize the impact of tariffs on our results of operations and financial condition. Known or Anticipated Trends As part of our strategic plan, we have launched a portfolio rebalance initiative through which we expect to exit non-core, low profit businesses while reinvesting in targeted mergers and acquisitions that align with our strategic priorities. During the 26-week period ended June 28, 2026, we sold three brands, ADS, Speartech, and Drake Brands, comprised of Drake Classic, Scott Drake, Drake Muscle Cars, Drake Automotive Group, Drake Auto Group, and Brothers Trucks brands. We continue to evaluate additional divestiture and acquisition opportunities that meet our strategic and financial criteria. See Note 2, "Acquisition and Divestitures" in the Notes to the condensed consolidated financial statements included in this Quarterly Report for more details. For a more complete discussion of the risks facing our business, including risks related to our ability to execute our business strategy and to successfully integrate acquisitions or achieve the expected benefits from divestitures, see "Part I, Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025. Key Components of Results of Operations Net Sales The principal activity from which we generate our sales is the designing, marketing, manufacturing and distribution of performance aftermarket automotive parts for our end consumers. Sales are displayed net of rebates and sales returns allowances. Sales returns are recorded as a charge against gross sales in the period in which the related sales are recognized. Cost of Goods Sold Cost of goods sold consists primarily of the cost of purchased parts and manufactured products, including materials and direct labor costs. In addition, warranty, incoming shipping and handling and inspection and repair costs are also included within costs of goods sold. Reductions in the cost of inventory to its net realizable value are also a component of cost of goods sold. Selling, General, and Administrative Selling, general, and administrative costs consist of payroll and related personnel expenses, IT and office services, office rent expense and professional services. In addition, self-insurance, advertising, outgoing shipping costs, pre-production and start-up costs are also included within selling, general, and administrative. We have incurred additional expenses as a result of operating as a public company, including expenses necessary to comply with the rules and regulations applicable to companies listed on a national securities exchange and related to compliance and reporting obligations pursuant to the rules and regulations of the SEC, as well as higher expenses for general and director and officer insurance, investor relations and other professional services. 32 Table of Contents Research and Development Costs Research and development costs consist of payroll and related personnel, IT and office services and professional services related to research and development of new products and enhancements of current products. Amortization of Intangible Assets Amortization of intangible assets represents the non‑cash expense related to the systematic write down of our definite‑lived intangible assets. Restructuring Costs Restructuring costs include charges attributable to operational restructuring and integration activities, including professional and consulting services, termination related benefits, facilities relocation, and executive transition costs. Loss on Sale of Assets Loss on sale of assets relates to the loss incurred related to the sales of ADS, Speartech, and Drake Brands. Interest Expense Interest expense consists of interest due on the indebtedness under our credit facilities. Interest is based on SOFR or the base rate, at the Company's election, plus the applicable margin rate. As of June 28, 2026, $527.7 million was outstanding under our Credit Agreement. Change in Fair Value of Warrant Liability Change in fair value of warrant liability represents remeasurement gains or losses on outstanding warrant liabilities, driven primarily by changes in our stock price and related valuation inputs. Change in Fair Value of Earn-out Liability Change in fair value of earn‑out liability reflects adjustments to contingent consideration based on revised expectations of earn‑out performance and updated valuation assumptions. 33 Table of Contents Results of Operations 13-Week Period Ended June 28, 2026 Compared With 13-Week Period Ended June 29, 2025 The table below presents Holley’s results of operations for the 13-week periods ended June 28, 2026 and June 29, 2025 (dollars in thousands): [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1822928/000162828026018218/hlly-20251231.htm Complete FY 2025 MD&A: /company/HLLY/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-03-16 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Unless the context requires otherwise, references to “Holley,” “we,” “us,” “our”, and “the Company” in this section are to the business and operations of Holley Inc. The following discussion and analysis should be read in conjunction with Holley’s consolidated financial statements and related notes thereto included in this Annual Report on Form 10-K. In addition to historical information, this discussion contains forward-looking statements that involve risks, uncertainties, and assumptions that could cause Holley’s actual results to differ materially from management’s expectations. Factors that could cause such differences are discussed herein and under the caption, “Cautionary Note Regarding Forward-Looking Statements.” Overview We are a designer, marketer, and manufacturer of high-performance automotive aftermarket products serving car and truck enthusiasts, with sales, processing, and distribution facilities reaching most major markets in the United States, Canada, Europe and China. Holley designs, markets, manufactures and distributes a diversified line of performance automotive products including fuel injection systems, tuners, exhaust products, carburetors, safety equipment and various other performance automotive products. Our products are designed to enhance street, off-road, recreational and competitive vehicle performance and safety. Central to our business and growth strategy is a commitment to innovation. We have a history of developing innovative products, including new additions to existing product families, expansions of product lines, accessory offerings, and ventures into entirely new categories. We believe this strategic approach allows us to continually adapt to evolving consumer needs. Furthermore, strategic acquisitions have played a significant role in our evolution. These acquisitions have enabled us to expand our brand portfolio, enter new product categories and consumer segments, enhance DTC scale and connection, increase market share in existing product categories, and realize valuable revenue and cost synergies. While we anticipate continued organic growth, we intend to continue evaluating opportunities for strategic acquisitions that align with our current business, expanding our reach within the target market. Factors Affecting our Performance We believe that our performance and future success depend on a number of factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and in the section of this Form 10-K titled “Risk Factors.” Business Combination On July 16, 2021, we consummated the Business Combination pursuant to the Merger Agreement, by and among Empower, Merger Sub I, Merger Sub II, and Holley Intermediate. The Merger Agreement provided for, among other things, the following transactions: (i) Merger Sub I merged with and into Holley Intermediate, the separate corporate existence of Merger Sub I ceased and Holley Intermediate became the surviving corporation, and (ii) Holley Intermediate merged with and into Merger Sub II, the separate corporate existence of Holley Intermediate, and Merger Sub II became the surviving limited liability company. Upon closing of the Business Combination, Empower changed its name to Holley Inc. and its trading symbol on the NYSE from “EMPW” to “HLLY.” The Business Combination was accounted for as a reverse recapitalization in accordance with U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). Holley Intermediate was deemed the accounting acquirer with Holley Inc. as the successor registrant. As such, Empower was treated as the acquired company for financial reporting purposes, and financial statements for periods prior to the Business Combination are those of Holley Intermediate. As a result of the Business Combination, Holley Inc. listed on the NYSE, which required us to hire additional personnel and implement procedures and processes to address public company regulatory requirements and customary practices. We have incurred and expect to continue to incur additional annual expenses as a public company for, among other things, directors’ and officers’ liability insurance, director fees, and additional internal and external accounting, legal, and administrative resources, including increased personnel costs, audit and other professional service fees. 36 Table of Contents Acquisitions We have historically pursued a growth strategy through both organic growth and acquisitions. We have pursued acquisitions that we believe will help drive profitability, cash flow and stockholder value. We target companies that we believe are market leaders, expand our geographic presence, provide a highly synergistic opportunity and/or enhance our ability to provide a wide array of our products to our customers through our distribution network. The acquisitions have all been accounted for in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 805, Business Combinations, and the operations of the acquired entities are included in our historical results for the periods following the closing of the applicable acquisition. See Note 1, “Description of the Business, Basis of Presentation, and Summary of Significant Accounting Policies” in the Notes to the Consolidated Financial Statements included in this Annual Report on Form 10-K for additional information related to our acquisitions and investments. Business Environment Our business and results of operations, financial condition, and liquidity are impacted by broad economic conditions including inflation, labor shortages, disruption of the supply chain, and potential tariffs, as well as by geopolitical events, including military conflicts (including the conflict in Ukraine, the conflict in Israel and surrounding areas, and the possible expansion of such conflicts). Our operations have been adversely impacted, and may continue to be adversely impacted, by inflationary pressures primarily related to transportation, labor and component costs. In response to the global supply chain volatility and inflationary impacts, we have attempted to minimize potential adverse impacts on our business with cost savings initiatives, price increases to customers, and by increasing inventory levels of certain products and working closely with our suppliers and customers to minimize disruptions in delivering products to customers. Our profitability has been, and may continue to be, adversely affected by constrained consumer demand, a shift in sales mix to lower-margin products, which is offset by our cost cutting and operating efficiency gains. Should the ongoing macroeconomic conditions not improve, or worsen, or if our attempts to mitigate the impact on our supply chain, operations and costs is not successful, our business, results of operations and financial condition may be adversely affected. Key Components of Results of Operations Net Sales The principal activity from which we generate our sales is the designing, marketing, manufacturing and distribution of performance aftermarket automotive parts for our end consumers. Sales are displayed net of rebates and sales returns allowances. Sales returns are recorded as a charge against gross sales in the period in which the related sales are recognized. Cost of Goods Sold Cost of goods sold consists primarily of the cost of purchased parts and manufactured products, including materials and direct labor costs. In addition, warranty, incoming shipping and handling and inspection and repair costs are also included within costs of goods sold. Reductions in the cost of inventory to its net realizable value are also a component of cost of goods sold. Selling, General, and Administrative Selling, general, and administrative consist of payroll and related personnel expenses, IT and office services, office rent expense and professional services. In addition, self-insurance, advertising, research and development, outgoing shipping costs, pre-production and start-up costs are also included within selling, general, and administrative. We have incurred additional expenses as a result of operating as a public company, including expenses necessary to comply with the rules and regulations applicable to companies listed on a national securities exchange and related to compliance and reporting obligations pursuant to the rules and regulations of the SEC, as well as higher expenses for general and director and officer insurance, investor relations and other professional services. Amortization of Intangible Assets Amortization of intangible assets represents the non‑cash expense related to the systematic write down of our definite‑lived intangible assets. 37 Table of Contents Impairment of Indefinite-lived Assets Impairment of indefinite-lived assets relates to indefinite-live trade name impairment charges. Impairment of Goodwill Impairment of goodwill relates to goodwill impairment charges. Loss on Sale of Assets Loss on sale of assets relates to the loss incurred related to the sale of Detroit Speed Engineering in the year ended December 31, 2024. Restructuring Costs Restructuring costs consist of professional fees for legal, accounting, consulting, administrative, and other professional services directly attributable to restructuring. Interest Expense Interest expense consists of interest due on the indebtedness under our credit facilities. On December 31, 2025, $529.4 million was outstanding under the Credit Agreement. Interest is based on the secured overnight financing rate ("SOFR") or prime rate, plus the applicable margin rate. Change in Fair Value of Warrant Liability Change in fair value of warrant liability represents remeasurement gains or losses on outstanding warrant liabilities, driven primarily by changes in our stock price and related valuation inputs. Change in Fair Value of Earn-out Liability Change in fair value of earn‑out liability reflects adjustments to contingent consideration based on revised expectations of earn‑out performance and updated valuation assumptions. Loss (Gain) on Early Extinguishment of Debt Extinguishment of debt consists of gains or losses recognized in connection with the termination, refinancing, or repayment of existing debt arrangements. These amounts include the write‑off of unamortized deferred financing costs, prepayment penalties, and the impact of any negotiated settlement amounts differing from the carrying value of the extinguished debt. 38 Table of Contents Results of Operations Year Ended December 31, 2025 Compared With Year Ended December 31, 2024 The table below presents our results of operations for the years ended December 31, 2025 and 2024 (dollars in thousands): [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/HLLY/mda/fy2025/ All MD&A years: /company/HLLY/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/HLLY/mda/fy2024/): filed 2025-03-14; accession 0001437749-25-007614 (https://www.sec.gov/Archives/edgar/data/1822928/000143774925007614/hlly20241112_10k.htm) - [FY 2023 MD&A](/company/HLLY/mda/fy2023/): filed 2024-03-14; accession 0001437749-24-007848 (https://www.sec.gov/Archives/edgar/data/1822928/000143774924007848/hlly20231231_10k.htm) - [FY 2022 MD&A](/company/HLLY/mda/fy2022/): filed 2023-03-15; accession 0001437749-23-006585 (https://www.sec.gov/Archives/edgar/data/1822928/000143774923006585/hlly20221231_10k.htm) - [FY 2021 MD&A](/company/HLLY/mda/fy2021/): filed 2022-03-15; accession 0000950170-22-003648 (https://www.sec.gov/Archives/edgar/data/1822928/000095017022003648/hlly-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 3714 Motor Vehicle Parts & Accessories) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/HLLY.md · JSON record: /company/HLLY.json · verified financials: /company/HLLY/financials.json / /company/HLLY/financials.csv · machine TOC for the whole site: /llms.txt