THIRD CONSECUTIVE QUARTER OF CORE NET BUSINESS GROWTH
LEVERAGE NOW BELOW 4X, THE LOWEST LEVEL SINCE 2022
Our strategic framework is fueling sustained momentum, with strong operational and financial results capped by our third consecutive quarter of core business growth.
BOWLING GREEN, Ky., Nov. 07, 2025 (GLOBE NEWSWIRE) -- Holley Performance Brands (NYSE: HLLY), a leader in automotive aftermarket performance solutions, today announced financial results for its third quarter ended September 28, 2025.
Third Quarter Highlights vs. Prior Year Period
- Net Sales increased 3.2% to $138.4 million compared to $134.0 million last year
- Core business net sales1 for the third quarter of 2025 grew by 6.4% compared to the third quarter of 2024 after excluding non-core business net sales1 of approximately $4.0 million for the third quarter of 2024
- Net Loss was $(0.8) million, or $(0.01) per diluted share, compared to $(6.3) million, or $(0.05) per diluted share, last year
- Net Cash Provided by Operating Activities was $7.4 million compared to Net Cash Used In Operating Activities of $(1.7) million last year
- Adjusted Net Income (Loss)2 was $3.3 million compared to $(0.5) million last year
- Adjusted EBITDA2 was $27.1 million compared to $22.1 million last year
- Free Cash Flow2 was $5.5 million compared to $(2.1) million last year
1 Core business net sales represents Net Sales after excluding non-core business net sales. Non-core business net sales are comprised of divestiture sales and strategic product rationalization sales. Divestitures sales relate to divested businesses (Detroit Speed Engineering, Gear FX and Proforged) prior to the divestiture date, and strategic product rationalization sales relate to discontinued stock keeping units ("SKUs") prior to the SKU discontinuance. Divestiture sales were $2.8 million for the third quarter of 2024, and strategic product rationalization sales were $1.3 million for the third quarter of 2024.
2 See "Use and Reconciliation of Non-GAAP Financial Measures" below.
"We delivered another strong quarter in 2025, underscored by sustained momentum across our all our categories," said Matthew Stevenson, President and Chief Executive Officer of Holley. "We achieved core business net sales growth for the third consecutive quarter. Our focused execution against our strategic framework has supported our transformation efforts and driven strong results in 2025. Year-to-date, our growth has been fueled primarily by strong volume gains of more than 4%, complemented by a ~1% benefit from pricing, reflecting both healthy demand and disciplined execution in the market."
Stevenson continued, "We continue to apply a disciplined approach to our financial strategy. Of note, we generated $5.5 million of Free Cash Flow in the third quarter, more than a $7 million improvement versus last year and prepaid an additional $15 million of debt in the third quarter, and an additional $10 million subsequent to quarter close, bringing the total repayment to $100 million since September 2023. This progress on the financial front has helped lower our leverage ratio to 3.9x at the end of Q3, eclipsing our 4.0x target we set for year-end, and the lowest level since 2022."
"2025 has been a successful year for Holley, so far, and we are looking to build on that and finish the year with momentum as we enter 2026. Given the strong results year-to-date and the effective tariff mitigation efforts throughout the year, we are increasing our guidance ranges for both revenue and Adjusted EBITDA for the full year. Our strategic framework continues to act as a guide to execute and deliver strong results over the long-term."
Strategic Business Highlights
- Achieved core business net sales growth for the third quarter of 2025 of 6.4% compared to the third quarter of 2024. Third consecutive quarter of core business sales growth.
- Strategic framework drove ~$27.8M in revenue on key initiatives for the third quarter of 2025.
- Expanded growth across 17 brands and all divisions within the quarter.
- Continued success with B2B partners, resulting in approximately 7.3% growth in the channel for the third quarter of 2025 compared to the third quarter of 2024.
- DTC orders grew 4.2% in the third quarter compared to the same period a year ago, representing the seventh consecutive quarter of DTC growth.
- Product innovation and strategic pricing initiatives contributed $11.3 million in revenue for the quarter and $30.1 million year-to-date.
Outlook
For the year ended December 31, 2025, we have refined our full-year guidance, inclusive of the expected net impact of tariffs:
| Metric | Full Year 2025 Outlook |
| Net Sales %YOY1 | $590 - $605 million 2.5% to 5.1%1 vs. Core Business |
| Adjusted EBITDA* | $120 - $127 million |
| Capital Expenditures | $10 - $14 million |
| Depreciation and Amortization Expense | $22 - $24 million |
| Interest Expense (excluding collar revaluation) | $45 - $50 million |
| 1) PY Comparison Excludes $12.8 million from Divested Non-Core Businesses and $14.0 million in Clearance Sales of Strategic Product Rationalization | |
* Holley is not providing reconciliations of forward-looking full year 2025 Adjusted EBITDA outlook because certain information necessary to calculate the most comparable GAAP measure, net income, is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, Holley is unable to provide these forward-looking reconciliations without unreasonable effort. Accordingly, Holley is relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these reconciliations.
Holley notes that its outlook for the year-ended December 31, 2025 may vary due to changes in assumptions or market conditions and other factors described below under "Forward-Looking Statements."
Conference Call
A conference call and audio webcast has been scheduled for 8:30 a.m. Eastern Time today to discuss these results. Investors, analysts, and members of the media interested in listening to the live presentation are encouraged to join a webcast of the call available on the investor relations portion of the Company's website at investor.holley.com. For those that cannot join the webcast, you can participate by dialing 877-407-4019 (Toll Free) or 201-689-8337 (Toll) using the access code of 13754501.
For those unable to participate, a telephone replay recording will be available until Friday, November 14, 2025. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13754501. A web-based archive of the conference call will also be available on the Company's website.
Additional Financial Information
The Investor Relations page of Holley's website, investor.holley.com contains a significant amount of financial information about Holley, including our earnings presentation, which can be found under Events & Presentations. Holley encourages investors to visit this website regularly, as information is updated, and new information is posted.
About Holley Performance Brands
Holley Performance Brands (NYSE: HLLY) leads in the design, manufacturing and marketing of high-performance products for automotive enthusiasts. The company owns and manages a portfolio of iconic brands, catering to a diverse community of enthusiasts passionate about the customization and performance of their vehicles. Holley Performance Brands distinguishes itself through a strategic focus on four consumer vertical groupings, including Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing, ensuring a wide-ranging impact across the automotive aftermarket industry. Renowned for its innovative approach and strategic acquisitions, Holley Performance Brands is committed to enhancing the enthusiast experience and driving growth through innovation. For more information on Holley Performance Brands and its dedication to automotive excellence, visit https://www.holley.com.
Forward-Looking Statements
Certain statements in this press release may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Holley's future financial or operating performance. For example, projections of future revenue and adjusted EBITDA and other metrics, along with statements regarding the impact of organizational changes, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "or" or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Holley and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: 1) Holley's ability to execute our business strategy, including monetization of services provided and expansions in and into existing and new lines of business; 2) Holley's ability to compete effectively in our market; 3) Holley's ability to successfully design, develop, and market new, effective, and safe products and platforms; 4) Holley's ability to respond to changes in vehicle ownership and type; 5) Holley's ability to maintain and strengthen demand for our products; 6) Holley's ability to grow and effectively manage our growth; 7) Holley's ability to attract new customers in a cost-effective manner and to expand into additional consumer markets; 8) Holley's ability to successfully integrate acquisitions or achieve the expected synergies from such acquisitions; 9) Holley's ability to maintain relationships with customers and suppliers; 10) Holley's ability to retain our management and key employees; 11) costs related to Holley being a public company; 12) disruptions to Holley's operations, including as a result of cybersecurity incidents; 13) changes in applicable laws or regulations; 14) the outcome of any legal proceedings that have been or may be instituted against Holley; 15) general economic and political conditions, including the current macroeconomic environment, political tensions, and war (including the conflict in Ukraine, the conflict in the Middle East, and the possible expansion of such conflicts and potential geopolitical consequences); 16) the possibility that Holley may be adversely affected by other economic, business, and/or competitive factors, including recent events affecting the financial services industry (such as the closures of certain regional banks); 17) Holley's estimates of its financial performance (e.g., the successful execution of cost saving initiatives); 18) Holley's ability to anticipate and manage through disruptions and higher costs in manufacturing, supply chain, logistical operations, and shortages of certain company products in distribution channels; 19) disruptions and costs associated with doing business in certain countries; 20) Holley's ability to adopt and react to risks posed by new technology; 21) inability to predict how products will ultimately be used; 22) Holley's ability to anticipate and manage through the impact of elevated interest rate levels, which cause the cost of capital to increase, as well as respond to inflationary pressures and trade restrictions, including tariffs; and 23) other risks and uncertainties set forth in the section entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission ("SEC") on March 14, 2025, and disclosed in any subsequent filings with the SEC. Although Holley believes the expectations reflected in the forward-looking statements are reasonable, nothing in this press release should be regarded as a representation by any person that the forward-looking statements or projections set forth herein will be achieved or that any of the contemplated results of such forward looking statements or projections will be achieved. There may be additional risks that Holley presently does not know or that Holley currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Holley undertakes no duty to update these forward-looking statements, except as otherwise required by law.
Investor Relations Contacts:
Anthony Rozmus / Neel Sikka / Jenna Kozlowski
Solebury Strategic Communications
203-428-3324
holley@soleburystrat.com
Media Relations Contacts:
Jordan Moore, jmoore@tinymightyco.com/ Sydney Goggans, sgoggans@tinymightyco.com
Tiny Mighty Communications
615-454-2913
[Financial Tables to Follow]
| HOLLEY INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (In thousands) (Unaudited) | |||||||||||||||||||||||||||||
| For the thirteen weeks ended | For the thirty-nine weeks ended | ||||||||||||||||||||||||||||
| September 28, | September 29, | Variance | Variance | September 28, | September 29, | Variance | Variance | ||||||||||||||||||||||
| 2025 | 2024 | ($) | (%) | 2025 | 2024 | ($) | (%) | ||||||||||||||||||||||
| Net Sales | $ | 138,373 | $ | 134,038 | $ | 4,335 | 3.2 | % | $ | 458,078 | $ | 462,170 | $ | (4,092 | ) | -0.9 | % | ||||||||||||
| Cost of Goods Sold | 78,534 | 81,732 | (3,198 | ) | -3.9 | % | 264,593 | 287,512 | (22,919 | ) | -8.0 | % | |||||||||||||||||
| Gross Profit | 59,839 | 52,306 | 7,533 | 14.4 | % | 193,485 | 174,658 | 18,827 | 10.8 | % | |||||||||||||||||||
| Selling, General, and Administrative | 33,466 | 30,109 | 3,357 | 11.1 | % | 103,119 | 97,675 | 5,444 | 5.6 | % | |||||||||||||||||||
| Research and Development Costs | 4,715 | 4,620 | 95 | 2.1 | % | 13,894 | 13,743 | 151 | 1.1 | % | |||||||||||||||||||
| Amortization of Intangible Assets | 3,456 | 3,436 | 20 | 0.6 | % | 10,338 | 10,307 | 31 | 0.3 | % | |||||||||||||||||||
| Restructuring Costs | 1,360 | 954 | 406 | 42.6 | % | 2,178 | 1,566 | 612 | 39.1 | % | |||||||||||||||||||
| Write-down of assets held-for-sale | - | 7,505 | (7,505 | ) | -100.0 | % | - | 7,505 | (7,505 | ) | -100.0 | % | |||||||||||||||||
| Other Operating Expense | 975 | 119 | 856 | nm | 1,232 | 213 | 1,019 | nm | |||||||||||||||||||||
| Operating Expense | 43,972 | 46,743 | (2,771 | ) | -5.9 | % | 130,761 | 131,009 | (248 | ) | -0.2 | % | |||||||||||||||||
| Operating Income | 15,867 | 5,563 | 10,304 | 185.2 | % | 62,724 | 43,649 | 19,075 | 43.7 | % | |||||||||||||||||||
| Change in Fair Value of Warrant Liability | 3,019 | (1,041 | ) | 4,060 | nm | 2,939 | (7,570 | ) | 10,509 | nm | |||||||||||||||||||
| Change in Fair Value of Earn-Out Liability | 1,126 | (634 | ) | 1,760 | nm | 722 | (2,341 | ) | 3,063 | nm | |||||||||||||||||||
| Loss on Early Extinguishment of Debt | - | - | - | 0.0 | % | - | 141 | (141 | ) | -100.0 | % | ||||||||||||||||||
| Interest Expense, Net | 11,259 | 15,010 | (3,751 | ) | -25.0 | % | 40,341 | 39,192 | 1,149 | 2.9 | % | ||||||||||||||||||
| Non-Operating Expense | 15,404 | 13,335 | 2,069 | 15.5 | % | 44,002 | 29,422 | 14,580 | 49.6 | % | |||||||||||||||||||
| Income (Loss) Before Income Taxes | 463 | (7,772 | ) | 8,235 | -106.0 | % | 18,722 | 14,227 | 4,495 | 31.6 | % | ||||||||||||||||||
| Income Tax Expense (Benefit) | 1,269 | (1,484 | ) | 2,753 | nm | 5,848 | (320 | ) | 6,168 | nm | |||||||||||||||||||
| Net Income (Loss) | $ | (806 | ) | $ | (6,288 | ) | $ | 5,482 | -87.2 | % | $ | 12,874 | $ | 14,547 | $ | (1,673 | ) | -11.5 | % | ||||||||||
| Comprehensive Income: | |||||||||||||||||||||||||||||
| Foreign Currency Translation Adjustment | 382 | 386 | (4 | ) | -1.0 | % | 1,336 | 244 | 1,092 | 447.5 | % | ||||||||||||||||||
| Total Comprehensive Income (Loss) | $ | (424 | ) | $ | (5,902 | ) | $ | 5,478 | -92.8 | % | $ | 14,210 | $ | 14,791 | $ | (581 | ) | -3.9 | % | ||||||||||
| Common Share Data: | |||||||||||||||||||||||||||||
| Basic Net Income per Share | $ | (0.01 | ) | $ | (0.05 | ) | $ | 0.05 | -87.3 | % | $ | 0.11 | $ | 0.12 | $ | (0.01 | ) | -12.1 | % | ||||||||||
| Diluted Net Income per Share | $ | (0.01 | ) | $ | (0.05 | ) | $ | 0.05 | -87.3 | % | $ | 0.11 | $ | 0.12 | $ | (0.01 | ) | -12.0 | % | ||||||||||
| Weighted Average Common Shares Outstanding - Basic | 119,406 | 118,694 | 712 | 0.6 | % | 119,140 | 118,345 | 795 | 0.7 | % | |||||||||||||||||||
| Weighted Average Common Shares Outstanding - Diluted | 119,406 | 118,694 | 712 | 0.6 | % | 119,811 | 119,154 | 657 | 0.6 | % | |||||||||||||||||||
| nm - not meaningful | |||||||||||||||||||||||||||||
| HOLLEY INC. and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (In thousands) (Unaudited) | |||||||
| As of | |||||||
| September 28, 2025 | December 31, 2024 | ||||||
| Assets | |||||||
| Cash and cash equivalents | $ | 50,723 | $ | 56,087 | |||
| Accounts receivable | 49,553 | 36,123 | |||||
| Inventory | 195,657 | 192,523 | |||||
| Prepaids and other current assets | 20,124 | 12,614 | |||||
| Total Current Assets | 316,057 | 297,347 | |||||
| Property, Plant and Equipment, Net | 43,758 | 40,983 | |||||
| Goodwill | 372,340 | 372,340 | |||||
| Other Intangibles, Net | 400,324 | 386,676 | |||||
| Other Noncurrent Assets | 32,635 | 35,974 | |||||
| Total Assets | $ | 1,165,114 | $ | 1,133,320 | |||
| Liabilities and Stockholders' Equity | |||||||
| Accounts payable | $ | 51,231 | $ | 44,781 | |||
| Accrued liabilities | 51,681 | 43,190 | |||||
| Accrued interest | 4,316 | - | |||||
| Current portion of long-term debt | 6,651 | 7,201 | |||||
| Total Current Liabilities | 113,879 | 95,172 | |||||
| Long-Term Debt, Net of Current Portion | 528,856 | 545,385 | |||||
| Warrant Liability | 3,752 | 813 | |||||
| Earn-out Liability | 1,870 | 1,148 | |||||
| Deferred Taxes | 43,606 | 37,391 | |||||
| Other Noncurrent Liabilities | 33,414 | 32,259 | |||||
| Total Liabilities | 725,377 | 712,168 | |||||
| Common Stock | 12 | 12 | |||||
| Additional Paid-In Capital | 381,932 | 377,557 | |||||
| Accumulated Other Comprehensive Loss | 174 | (1,162 | ) | ||||
| Retained Earnings | 57,619 | 44,745 | |||||
| Total Stockholders' Equity | 439,737 | 421,152 | |||||
| Total Liabilities and Stockholders' Equity | $ | 1,165,114 | $ | 1,133,320 | |||
| HOLLEY INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||||||||||||
| For the thirteen weeks ended | For the thirty-nine weeks ended | |||||||||||||||
| September 28, 2025 | September 29, 2024 | September 28, 2025 | September 29, 2024 | |||||||||||||
| Operating Activities | ||||||||||||||||
| Net Income (Loss) | $ | (806 | ) | $ | (6,288 | ) | $ | 12,874 | $ | 14,547 | ||||||
| Adjustments to Reconcile to Net Cash | 18,641 | 12,241 | 42,490 | 26,832 | ||||||||||||
| Changes in Operating Assets and Liabilities | (10,405 | ) | (7,701 | ) | (15,297 | ) | 1,394 | |||||||||
| Net Cash Provided by (Used in) Operating Activities | 7,430 | (1,748 | ) | 40,067 | 42,773 | |||||||||||
| Investing Activities | ||||||||||||||||
| Capital Expenditures, Net of Dispositions | (5,510 | ) | (311 | ) | (26,408 | ) | (2,727 | ) | ||||||||
| Net Cash Used in Investing Activities | (5,510 | ) | (311 | ) | (26,408 | ) | (2,727 | ) | ||||||||
| Financing Activities | ||||||||||||||||
| Net Change in Debt | (15,017 | ) | (227 | ) | (18,625 | ) | (28,832 | ) | ||||||||
| Payments from Stock-Based Award Activities | - | (45 | ) | (850 | ) | (1,482 | ) | |||||||||
| Net Cash Used in Financing Activities | (15,017 | ) | (272 | ) | (19,475 | ) | (30,314 | ) | ||||||||
| Effect of Foreign Currency Rate Fluctuations on Cash | (22 | ) | 2 | 452 | (62 | ) | ||||||||||
| Net Change in Cash and Cash Equivalents | (13,119 | ) | (2,329 | ) | (5,364 | ) | 9,670 | |||||||||
| Cash and Cash Equivalents | ||||||||||||||||
| Beginning of Period | 63,842 | 53,080 | 56,087 | 41,081 | ||||||||||||
| End of Period | $ | 50,723 | $ | 50,751 | $ | 50,723 | $ | 50,751 | ||||||||
We present certain information with respect to EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Bank-adjusted EBITDA Leverage Ratio, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow as supplemental measures of our operating performance and believe that such non-GAAP financial measures are useful to investors in evaluating our financial performance and in comparing our financial results between periods because they exclude the impact of certain items that we do not consider indicative of our ongoing operating performance. We believe that the presentation of these non-GAAP financial measures enhances the usefulness of our financial information by presenting measures that management uses internally to establish forecasts, budgets, and operational goals to manage and monitor our business. We believe that these non-GAAP financial measures help to depict a more realistic representation of the performance of our underlying business, enabling us to evaluate and plan more effectively for the future.
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Bank-adjusted EBITDA Leverage Ratio, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Net Income, Adjusted Diluted EPS and Free Cash Flow are not prepared in accordance with generally accepted accounting principles ("GAAP") and may be different from non-GAAP and other financial measures used by other companies. These measures should not be considered as measures of financial performance under GAAP, and the items excluded from or included in these metrics are significant components in understanding and assessing our financial performance. These metrics should not be considered as alternatives to net income, gross profit, net cash provided by operating activities, or any other performance measures, as applicable, derived in accordance with GAAP.
We define EBITDA as earnings before depreciation, amortization of intangible assets, interest expense, and income tax expense. We define Adjusted EBITDA as EBITDA adjusted to exclude, to the extent applicable, restructuring costs, which includes operational restructuring and integration activities, termination related benefits, facilities relocation, and executive transition costs; changes in the fair value of the warrant liability; changes in the fair value of the earn-out liability; equity-based compensation expense; gain or loss on the early extinguishment of debt; notable items that we do not believe are reflective of our underlying operating performance, including litigation settlements and certain costs incurred for advisory services related to identifying performance initiatives; and other expenses or gains, which includes gains or losses from disposal of fixed assets, franchise taxes, and gains or losses from foreign currency transactions. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by net sales.
| HOLLEY INC. and SUBSIDIARIES USE AND RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (In thousands) (Unaudited) | ||||||||||||||||
| For the thirteen weeks ended | For the thirty-nine weeks ended | |||||||||||||||
| September 28, 2025 | September 29, 2024 | September 28, 2025 | September 29, 2024 | |||||||||||||
| Net Income (Loss) | $ | (806 | ) | $ | (6,288 | ) | $ | 12,874 | $ | 14,547 | ||||||
| Adjustments: | ||||||||||||||||
| Interest Expense, Net | 11,259 | 15,010 | 40,341 | 39,192 | ||||||||||||
| Income Tax Expense (Benefit) | 1,269 | (1,484 | ) | 5,848 | (320 | ) | ||||||||||
| Depreciation | 2,669 | 2,231 | 7,183 | 7,364 | ||||||||||||
| Amortization | 3,456 | 3,436 | 10,338 | 10,307 | ||||||||||||
| EBITDA | 17,847 | 12,905 | 76,584 | 71,090 | ||||||||||||
| Restructuring Costs | 1,360 | 954 | 2,178 | 1,566 | ||||||||||||
| Change in Fair Value of Warrant Liability | 3,019 | (1,041 | ) | 2,939 | (7,570 | ) | ||||||||||
| Change in Fair Value of Earn-Out Liability | 1,126 | (634 | ) | 722 | (2,341 | ) | ||||||||||
| Write-down of Assets Held for Sale | - | 7,505 | - | 7,505 | ||||||||||||
| Equity-Based Compensation Expense | 2,322 | 1,521 | 5,225 | 4,283 | ||||||||||||
| Loss on Early Extinguishment of Debt | - | - | - | 141 | ||||||||||||
| Notable Items | 457 | 785 | 1,941 | 6,479 | ||||||||||||
| Other Expense | 975 | 119 | 1,232 | 213 | ||||||||||||
| Adjusted EBITDA | $ | 27,106 | $ | 22,114 | $ | 90,821 | $ | 81,366 | ||||||||
| Net Sales | $ | 138,373 | $ | 134,038 | $ | 458,078 | $ | 462,170 | ||||||||
| Net Income Margin | (0.6 | %) | (4.7 | %) | 2.8 | % | 3.1 | % | ||||||||
| Adjusted EBITDA Margin | 19.6 | % | 16.5 | % | 19.8 | % | 17.6 | % | ||||||||
We define the Bank-adjusted EBITDA Leverage Ratio as Net Debt divided by our Bank-adjusted EBITDA for the trailing twelve-month ("TTM") period, as defined under our Credit Agreement entered into in November 2021, as amended, which is used in calculating covenant compliance.
| TTM September 28, 2025 | December 31, 2024 | |||||||
| Net Loss | $ | (24,908 | ) | $ | (23,235 | ) | ||
| Adjustments: | ||||||||
| Interest Expense, Net | 51,838 | 50,690 | ||||||
| Income Tax Expense (Benefit) | 3,143 | (3,025 | ) | |||||
| Depreciation | 10,370 | 10,551 | ||||||
| Amortization | 13,915 | 13,884 | ||||||
| EBITDA | 54,358 | 48,865 | ||||||
| Restructuring Costs | 1,984 | 1,372 | ||||||
| Change in Fair Value of Warrant Liability | 2,939 | (7,570 | ) | |||||
| Change in Fair Value of Earn-Out Liability | 730 | (2,333 | ) | |||||
| Equity-Based Compensation Expense | 6,112 | 5,170 | ||||||
| Impairment of indefinite-lived intangible assets | 7,695 | 7,695 | ||||||
| Impairment of goodwill | 40,906 | 40,906 | ||||||
| Loss on Sale of Assets | 1,729 | 9,234 | ||||||
| Loss on Early Extinguishment of Debt | - | 141 | ||||||
| Notable Items | 2,565 | 7,100 | ||||||
| Other Expense (Income) | 934 | (86 | ) | |||||
| Adjusted EBITDA | 119,952 | 110,494 | ||||||
| Additional Permitted Charges | 6,046 | 12,261 | ||||||
| Adjusted EBITDA per Credit Agreement | $ | 125,998 | $ | 122,755 | ||||
| Total Debt | $ | 542,938 | $ | 561,840 | ||||
| Less: Permitted Cash and Cash Equivalents | 50,000 | 50,000 | ||||||
| Net Indebtedness per Credit Agreement | $ | 492,938 | $ | 511,840 | ||||
| Bank-adjusted EBITDA Leverage Ratio | 3.91 x | 4.17 x | ||||||
We define Adjusted Net Income as earnings excluding the after-tax effect of changes in the fair value of the warrant liability, changes in the fair value of the earn-out liability, write-downs of assets held-for-sale, and gain or loss on the early extinguishment of debt. We define Adjusted Diluted EPS as Adjusted Net Income on a per share basis. Management uses these measures to focus on on-going operations and believes that it is useful to investors because it enables them to perform meaningful comparisons of past and present consolidated operating results. We believe that using this information, along with net income and net income per diluted share, provides for a more complete analysis of the results of operations.
| For the thirteen weeks ended | For the thirty-nine weeks ended | ||||||||||||||
| September 28, 2025 | September 29, 2024 | September 28, 2025 | September 29, 2024 | ||||||||||||
| Net Income (Loss) | $ | (806 | ) | $ | (6,288 | ) | $ | 12,874 | $ | 14,547 | |||||
| Special items: | |||||||||||||||
| Adjust for: Change in Fair Value of Warrant Liability | 3,019 | (1,041 | ) | 2,939 | (7,570 | ) | |||||||||
| Adjust for: Change in Fair Value of Earn-Out Liability | 1,126 | (634 | ) | 722 | (2,341 | ) | |||||||||
| Adjust for: Write-down of assets held for sale | - | 7,505 | - | 7,505 | |||||||||||
| Adjust for: Loss on Early Extinguishment of Debt | - | - | - | 141 | |||||||||||
| Adjusted Net Income | $ | 3,339 | $ | (458 | ) | $ | 16,535 | $ | 12,282 | ||||||
| For the thirteen weeks ended | For the thirty-nine weeks ended | ||||||||||||||
| September 28, 2025 | September 29, 2024 | September 28, 2025 | September 29, 2024 | ||||||||||||
| Net Income (Loss) per Diluted Share | $ | (0.01 | ) | $ | (0.05 | ) | $ | 0.11 | $ | 0.12 | |||||
| Special items: | |||||||||||||||
| Adjust for: Change in Fair Value of Warrant Liability | 0.03 | (0.01 | ) | 0.02 | (0.06 | ) | |||||||||
| Adjust for: Change in Fair Value of Earn-Out Liability | 0.01 | (0.01 | ) | 0.01 | (0.02 | ) | |||||||||
| Adjust for: Write-down of assets held for sale | - | 0.06 | - | 0.06 | |||||||||||
| Adjusted Diluted EPS | $ | 0.03 | $ | (0.01 | ) | $ | 0.14 | $ | 0.10 | ||||||
We define Free Cash Flow as net cash provided by operating activities minus cash payments for capital expenditures, net of dispositions. Management believes providing Free Cash Flow is useful for investors to understand our performance and results of cash generation after making capital investments required to support ongoing business operations.
| For the thirteen weeks ended | For the thirty-nine weeks ended | |||||||||||||||
| September 28, 2025 | September 29, 2024 | September 28, 2025 | September 29, 2024 | |||||||||||||
| Net Cash Provided by (Used in) Operating Activities | $ | 7,430 | $ | (1,748 | ) | $ | 40,067 | $ | 42,773 | |||||||
| Capital Expenditures, Net of Dispositions | (2,145 | ) | (1,727 | ) | (9,953 | ) | (4,372 | ) | ||||||||
| Proceeds from the disposal of fixed assets | 205 | 1,416 | 205 | 1,645 | ||||||||||||
| Free Cash Flow | $ | 5,490 | $ | (2,059 | ) | $ | 30,319 | $ | 40,046 | |||||||
