Holley Inc. (HLLY): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how this performance parts giant actually makes its money, especially now as we close out 2025. Honestly, the picture for Holley Inc. (HLLY) is a classic case of a century-old name aggressively managing its leverage while pouring fuel on its core enthusiast engine-think major community events like LS Fest driving growth in verticals like Domestic Muscle. We're talking about a business guiding for net sales between $\mathbf{\$590\text{M}}$ and $\mathbf{\$605\text{M}}$ this year, so let's break down the nine essential blocks of their Business Model Canvas to see where the real value is being built and where the debt servicing costs are hitting.

Holley Inc. (HLLY) - Canvas Business Model: Key Partnerships

The Key Partnerships for Holley Inc. (HLLY) are centered on distribution channels, motorsports validation, and supply chain stability.

B2B Wholesale Distributors and Dealers

• B2B channel sales advanced approximately 6.5% year-over-year in the second quarter of 2025 compared to the second quarter of 2024.
• B2B partners saw approximately 7.3% growth in the channel for the third quarter of 2025 compared to the third quarter of 2024.
• The company expanded growth across 17 brands within the B2B channel in Q3 2025.

Third-Party E-commerce Platforms (Amazon, eBay Motors)

Activity on third-party marketplaces, including Amazon and eBay, increased by more than 28% in the second quarter of 2025 compared to the comparable period in the prior year. Direct-to-consumer (DTC) orders grew 4.2% in the third quarter of 2025, marking the seventh consecutive quarter of DTC growth.

The performance across key sales channels for the first three quarters of 2025 is detailed below:

Professional Motorsports Organizations (NASCAR, NHRA)

Holley Inc. confirmed sponsorships and participation in more than 50 enthusiast events nationwide throughout 2025, covering segments like Safety & Racing. The company is hosting events such as Holley LS Fest West, Holley LS Fest Texas, Holley MoParty, and the Holley Ford Festival.

Key Suppliers for High-Quality Components

Strategic sourcing and pricing initiatives were key to mitigating tariff impacts, providing better visibility for full-year 2025 guidance. Product innovation and strategic pricing initiatives contributed $30.1 million in revenue year-to-date as of the third quarter of 2025.

Major Automotive Parts Retailers (e.g., AutoZone, Summit Racing)

The B2B channel growth figures reflect the performance across major retailers and wholesale partners. The company's full-year 2025 Net Sales guidance is between $590 million and $605 million, with Adjusted EBITDA guidance between $120 million and $127 million.

Holley Inc. (HLLY) - Canvas Business Model: Key Activities

You're looking at the core engine of Holley Inc. (HLLY), the day-to-day work that turns designs into dollars in the performance aftermarket. This isn't just about making parts; it's about managing a massive portfolio and connecting directly with the people who buy them.

Design and manufacture high-performance aftermarket parts

The foundation of Holley Inc. (HLLY) is the engineering and production of performance automotive components. This activity supports the overall financial health, evidenced by the company's reported Net Sales for the third quarter of 2025 reaching $138.4 million. The focus on core business performance is clear, with core business net sales growing by 6.4% in the third quarter of 2025 compared to the third quarter of 2024. Furthermore, the manufacturing and operational focus has driven margin improvement; the gross margin for the third quarter of 2025 stood at 43.2%, which is an increase of 422 basis points versus the prior year period. For the full fiscal year 2025, the company has projected Net Sales to be in the range of $590 - $605 million.

Continuous new product innovation

Innovation is a direct revenue driver for Holley Inc. (HLLY). The company tracks the financial contribution from new product launches and strategic pricing initiatives. For the third quarter of 2025, these efforts contributed $11.3 million in revenue. Year-to-date through the third quarter of 2025, product innovation and strategic pricing initiatives have generated $30.1 million in revenue. This focus on new offerings fuels growth across channels, as Direct-to-Consumer (DTC) orders grew 4.2% in the third quarter, marking the seventh consecutive quarter of DTC growth.

Strategic brand management across over 70 iconic brands

Holley Inc. (HLLY) manages a vast portfolio of brands, which are strategically grouped across four consumer verticals. While the total portfolio size is known to be extensive, recent operational reporting highlights the active management of a subset of these. In the third quarter of 2025, the company specifically noted expanded growth across 17 brands and all divisions within that quarter. The company's success is tied to these brands, with B2B partners seeing approximately 7.3% growth in the channel for the third quarter of 2025 compared to the prior year period. The strategic framework drove approximately $27.8 million in revenue on key initiatives in the third quarter of 2025.

Executing operational efficiency and inventory reduction

A key operational activity involves streamlining the balance sheet through efficiency drives. You should note the specific progress made on inventory management. As of the second quarter of 2025, the company had already reduced inventory by approximately $9 million since the beginning of that year. This reduction contributed meaningfully to improved cash flow and working capital efficiency. The company has been focused on tariff mitigation through strategic sourcing and pricing to improve visibility for the full year 2025 guidance.

Hosting large enthusiast community events

Experiential marketing through enthusiast events is a critical activity for community engagement and product feedback. The 2025 flagship event season is scheduled to encompass five flagship events between April and September. These events are designed to connect directly with consumers. For context on scale, the Holley LS Fest East in 2024 attracted more than 44,000 people, marking the largest event in LS Fest's 15-year history. The company is taking over full hosting duties for the Holley Ford Festival in the fall of 2025, planning an expanded lineup.

Here's a quick look at some of the key operational and financial metrics tied to these activities as of the latest reported quarter:

The execution of the strategic framework drove approximately $27.8 million in revenue from key initiatives in the third quarter of 2025 alone. The company's focus on operational discipline is also reflected in its balance sheet management; Holley Performance Brands generated $5.5 million of Free Cash Flow in the third quarter and prepaid an additional $15 million of debt, bringing the total repayment to $100 million since September 2023.

Holley Inc. (HLLY) - Canvas Business Model: Key Resources

You're looking at the hard assets and intangible strengths that power Holley Inc.'s operations as of late 2025. These aren't just line items; they are the foundation upon which the company generates revenue in the automotive aftermarket.

The portfolio of trusted brands is central. Holley Performance Brands manages its offerings across four distinct consumer vertical groupings, ensuring deep market penetration. These verticals are:

• Domestic Muscle
• Modern Truck & Off-Road
• Euro & Import
• Safety & Racing

This brand structure supports a deep, loyal automotive enthusiast community. Holley Performance Brands confirmed participation in more than 50 enthusiast events nationwide during 2025, aiming to reach one million enthusiasts across the event season. The Safety & Racing team, for example, strengthened brand identity through events like the inaugural Saddle Up Global Dealer Summit at Simpson's New Braunfels, Texas headquarters earlier this year.

Intellectual property is evident in product innovation. You see this in the expanded EFI (Electronic Fuel Injection) ecosystem, now bundled with the HyperSpark ignition system, and in the Safety & Racing division launching a new line of helmets aligned with the new Snell SA2025 safety standards.

Operationally, the primary manufacturing and distribution hub remains in Bowling Green, KY. This physical footprint supports the company's execution against its strategic framework.

From a financial standpoint, Holley Inc. maintains a strong liquidity position. The company reported a current ratio of 2.78, indicating a solid ability to cover short-term obligations. Furthermore, the leverage position has improved significantly, with the leverage ratio dropping to 3.9x at the end of Q3 2025, which is the lowest level since 2022. Here's a quick look at some of the key financial metrics supporting this resource base:

The company's core business net sales growth for the third quarter of 2025 was 6.4% year-over-year, showing the tangible results of leveraging these key resources.

Holley Inc. (HLLY) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Holley Inc. products, which are clearly reflected in their late 2025 operational metrics. The value proposition centers on providing a complete, performance-driven solution set for vehicle modification.

Comprehensive performance ecosystem for customization

Holley Inc. offers an integrated system that helps enthusiasts complete complex builds, moving beyond single-part sales. This ecosystem is supported by a broad portfolio, which saw growth across 17 brands and all divisions in the third quarter of 2025. The company's success in driving demand is evident in its channel performance: B2B partners saw approximately 7.3% growth in the channel for Q3 2025 compared to the prior year period, while Direct-to-Consumer (DTC) orders grew 4.2%, marking the seventh consecutive quarter of DTC growth. This multi-channel strength supports the ecosystem approach.

The focus on new technology within this ecosystem is quantified by the revenue generated from product innovation and strategic pricing initiatives, which contributed $11.3 million in revenue for the third quarter of 2025, totaling $30.1 million year-to-date.

Unparalleled enhancement of horsepower, torque, and drivability

The promise of superior vehicle performance is a primary driver, backed by year-to-date volume gains of more than 4%, complemented by a roughly 1% benefit from pricing, as noted by management for 2025. The company's overall financial health, which underpins continued R&D, showed core business net sales growing by 6.4% in Q3 2025 over Q3 2024, the third consecutive quarter of core business growth. The full-year 2025 revenue guidance is set between $590 million and $605 million.

Iconic brand heritage and trusted quality for over a century

The value proposition leans heavily on the legacy of its portfolio. This heritage is actively marketed, for example, through a special display at the PRI Show featuring the legendary fire suit worn by brand founder Bill Simpson during his famous Indianapolis demonstration back in 1986. The company manages a portfolio of iconic brands, which is strategically segmented across four consumer vertical groupings:

• Domestic Muscle
• Modern Truck & Off-Road
• Euro & Import
• Safety & Racing

Cutting-edge safety and racing products (Snell SA2025 standards)

For the Safety & Racing vertical, Holley Inc. demonstrates a commitment to the latest standards. A key deliverable for 2025 was the launch of a new line of helmets specifically in alignment with the new Snell SA2025 safety standards. This portfolio includes innovations across brands like Simpson, Stilo, HANS, and RaceQuip, with specific new models like RaceQuip's NX25 helmet and Simpson's new Bandit and Kingsnake models.

Solutions for both classic and modern vehicle platforms

Holley Inc. provides solutions spanning the entire spectrum of enthusiast vehicles. This breadth is demonstrated by showcasing products for both older and newer engine architectures. For instance, the company features SEMA award-winning products like the Terminator X Bluetooth EFI Kits alongside Holley Hi Ram intakes designed for small block Chevy, big block Chevy, and Ford Coyote engines. The display at SEMA 2025 featured a 1995 fourth-gen Camaro build, anchoring the display for the Domestic Muscle segment.

The financial stability supporting this broad product development is shown by the leverage ratio dropping to 3.9x at the end of Q3 2025, eclipsing the 4.0x target set for year-end, and a total debt repayment of $100 million since September 2023.

Holley Inc. (HLLY) - Canvas Business Model: Customer Relationships

You're looking at how Holley Inc. (HLLY) keeps its enthusiast base engaged and growing, which is the lifeblood of the performance aftermarket. It's not just about shipping parts; it's about being present where the customer lives and breathes cars. The relationship strategy is multi-pronged, hitting the community, the digital storefront, and the professional trade directly.

Deep community integration via sponsored events and festivals

Holley Inc. uses its flagship events as a primary touchpoint to connect with its core audience. The 2025 event season was planned around five major gatherings scheduled between April and September, designed to attract enthusiasts nationwide. The stated goal for the 2025 season was to reach one million enthusiasts across these experiential marketing events. These events are strategically crafted to engage across the company's four main consumer vertical groupings: Domestic Muscle, Modern Truck & Off-Road, Euro & Import, and Safety & Racing. For instance, the company showcased its portfolio at SEMA 2025 from its booth in Central Hall at location #22463. Later in the year, presence at PRI 2025 included locations like Green Hall #1229, Green Hall #1225, and Green Hall #1313. This hands-on approach is seen as one of the richest ties to the enthusiast community.

Direct engagement through Holley.com and social channels

Digital channels show strong, consistent growth, which directly reflects the effectiveness of the direct-to-consumer (DTC) relationship strategy. In the second quarter of 2025, DTC orders grew by 8.6% year-over-year. That growth was even stronger on third-party marketplaces like Amazon and eBay, which saw an increase of over 28% in Q2 2025. To give you a sense of the digital reach, in Q2 2025, earned media impressions hit 463 million from 657 media clips, while the social media following grew 2% over the previous year. This digital momentum carried into Q3 2025, where DTC orders grew 4.2%, marking the seventh consecutive quarter of DTC growth. The company's Q1 2025 performance showed even higher growth on third-party platforms, exceeding 50% growth.

Here are the recent growth metrics for direct channels:

Dedicated B2B sales force for professional teams and workshops

The B2B channel, which serves professional teams and workshops, is supported by a dedicated sales force and specific initiatives. In Q2 2025, B2B channel sales advanced by approximately 6.5% year-over-year, following a growth of over 2.5% in Q1 2025. The focus on key accounts is clear: revenue from the top 50-plus accounts accelerated significantly in Q2 2025, contributing $8.3 million in growth. Furthermore, the Holley Pros initiative, aimed at engaging smaller accounts, added $2.5 million in revenue during Q1 2025 alone. By Q3 2025, B2B partners saw approximately 7.3% growth in the channel compared to the same period last year. These targeted efforts help maintain strong relationships with trade collaborators.

Targeted marketing for four distinct vertical markets

Holley Inc. structures its marketing and product focus around distinct enthusiast segments, ensuring tailored value propositions. While the prompt mentions seven markets, public reporting for 2025 highlights four primary consumer vertical groupings that receive targeted attention across products and events. The overall core business net sales growth in Q3 2025 was 6.4%, indicating broad success across these divisions. The company reported growth across more than 17 brands in Q3 2025 and over 20 brands in Q2 2025, all falling under these key market focuses. The company's product innovation and strategic pricing initiatives contributed $11.3 million in revenue in Q3 2025, which is directly tied to meeting the specific demands within these verticals.

The explicitly mentioned vertical groupings for 2025 marketing and events are:

• Domestic Muscle
• Modern Truck & Off-Road
• Euro & Import
• Safety & Racing

The company's full-year 2025 net sales guidance is set between $590 million and $605 million, reflecting the expected performance across these customer relationship strategies.

Holley Inc. (HLLY) - Canvas Business Model: Channels

You're looking at how Holley Inc. gets its high-performance products into the hands of enthusiasts and professionals as of late 2025. The strategy is clearly multi-pronged, focusing on digital strength while maintaining deep ties with traditional trade partners.

The overall financial context for the channels is set by the full-year 2025 revenue guidance, which Holley Inc. has refined to be between $590 million and $605 million, representing a potential growth of 2.5% to 5.1% over the core business base of 2024. This revenue flows through the distinct channels detailed below.

Direct-to-Consumer (DTC) e-commerce (Holley.com)

Holley Inc. continues to push its direct relationship with the end-user via Holley.com. This channel is a key focus for brand engagement and margin capture. For the third quarter ended September 28, 2025, DTC orders showed solid, sustained growth.

• DTC orders grew 4.2% in the third quarter of 2025 compared to the third quarter of 2024.
• This marks the seventh consecutive quarter of DTC growth for Holley Inc.
• In the second quarter of 2025, the DTC channel saw an increase of over 8.6% year-over-year.

Third-party online marketplaces (Amazon, eBay Motors)

The third-party marketplace segment, which includes platforms like Amazon and eBay Motors, is showing the most explosive growth rate among the measured channels. This indicates strong digital shelf presence and consumer preference for these platforms for certain purchases.

Here's how the marketplace activity looked in the second quarter of 2025:

This rapid expansion on third-party platforms is a significant driver of the overall digital sales strategy.

Automotive parts retail chains (B2B)

The Business-to-Business (B2B) segment, serving large automotive parts retail chains, remains a foundational element of Holley Inc.'s distribution. The company reports strengthening relationships here, which translates directly to the top line.

The performance in Q3 2025 shows this channel is healthy:

• B2B partners saw approximately 7.3% growth in the channel for the third quarter of 2025 compared to the third quarter of 2024.
• In the second quarter of 2025, the B2B channel advanced 6.5% year-over-year.

Specialty performance shops and speed shops

While often grouped within the broader B2B category, the specialty shops and speed shops represent the core, high-touch enthusiast segment. Holley Inc. is actively expanding its reach here, evidenced by specific dealer program growth.

For example, in the second quarter of 2025, Holley Inc. expanded its reach in the car dealer channel, bringing the total number of participating BMW dealers in a specific program to 28, up from 22 previously. This type of focused expansion into specialized outlets is key to maintaining brand relevance where technical expertise is valued.

Overall channel performance metrics for Q3 2025:

Holley Inc. is definitely balancing its efforts across these routes to market.

Holley Inc. (HLLY) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Holley Inc. (HLLY) as of late 2025. This isn't just one group; it's a collection of highly passionate individuals and professional operations that drive the company's performance. The data from the third quarter of 2025 shows that the core business is growing, which means these segments are actively buying.

Automotive Performance Enthusiasts (DIY, high-spend)

This segment represents the backbone of Holley Inc. (HLLY)'s customer base, encompassing the do-it-yourself modifier and the dedicated, high-spending enthusiast. Their purchasing behavior is captured in the company's channel performance metrics. For instance, Direct-to-Consumer (DTC) orders showed growth of 4.2% in the third quarter of 2025 compared to the prior year period, marking the seventh consecutive quarter of DTC growth. This direct engagement suggests a strong, ongoing relationship with the end-user enthusiast. Furthermore, sales through third-party platforms like Amazon and eBay saw a significant increase of more than 28% in the second quarter of 2025 year-over-year, indicating broad market reach to these DIY buyers.

Professional Racing Teams (NASCAR, NHRA, grassroots)

The professional and serious amateur racing community relies on Holley Inc. (HLLY) for mission-critical components, especially within the Safety & Racing vertical. While specific revenue allocation to this group isn't broken out, the company's focus on this area is clear through product development, such as debuting a new helmet lineup for the SA2025 standard. These customers often purchase through B2B channels, which showed continued success with approximately 7.3% growth in the third quarter of 2025 compared to the third quarter of 2024. The performance of the Safety & Racing division is critical, as the company expanded growth across 17 brands and all divisions in Q3 2025.

Four Core Verticals

Holley Inc. (HLLY) strategically organizes its offerings around four primary consumer verticals. The overall core business net sales grew by 6.4% in the third quarter of 2025 over the third quarter of 2024. This growth is a composite result of demand across all these areas. The company's Q2 2025 results specifically noted strong demand in the domestic muscle and modern truck/off-road markets.

Here is a look at the financial context surrounding the business that serves these segments as of the latest reported quarter:

The four core verticals are:

• Domestic Muscle
• Modern Truck & Off-Road
• Euro & Import
• Safety & Racing

Vehicle Restorers and Classic Car Owners

This group overlaps significantly with the DIY enthusiast but focuses specifically on maintaining and upgrading vintage and classic vehicles. Their purchasing patterns are often reflected in the steady growth across the company's portfolio of 17 brands. These owners seek authenticity and high-quality replacement or upgrade parts that Holley Inc. (HLLY) provides across its various product lines. The company's overall revenue for the trailing twelve months (TTM) ending Q3 2025 was $598.13 million, with full-year 2025 revenue guidance set between $590 - $605 million. This top-line performance is the aggregate result of demand from all customer groups, including those dedicated to restoration projects.

Finance: draft 13-week cash view by Friday.

Holley Inc. (HLLY) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Holley Inc.'s operations as of late 2025. These are the real costs you need to account for when modeling out their performance, so let's look at the hard numbers we have from their latest filings and guidance.

Cost of Goods Sold (COGS) for manufacturing and sourcing is a major component. For the full year ended December 31, 2024, the Cost of goods sold was reported as $363,680 thousand. To give you a sense of the current cost environment, Holley Inc. reported a Gross margin of 44.40% in their latest reported statistics, and the Q1 2025 Gross margin was 41.9%. Holley Inc. has noted that a significant differentiator is that the majority of their production cost and COGS is in the U.S. versus some competitors sourcing primarily out of Asia.

High R&D investment for new product development is bundled within the Selling, General, and Administrative (SG&A) line item. For the first quarter of 2025, the combined SG&A, which includes R&D expenses, was $40.8 million, up from $37.8 million in the same period the prior year. The Chief Operating Decision Maker reviews budget allocation between cost of revenues, sales and marketing, research and development, and general and administrative expenses.

Marketing and promotional expenses for enthusiast events are also part of SG&A. While 2025 specific marketing spend isn't fully detailed, for the full year 2024, Holley Inc. spent approximately $13.5 million on marketing and advertising, which represented about 2.1% of their 2024 annual gross sales. The increase in Q1 2025 SG&A was partly driven by the timing impact of marketing expenses.

Debt servicing costs due to leverage are significant, reflecting the capital structure. For the full year ending December 31, 2025, Holley Inc. has guided its Interest Expense (excluding collar revaluation) to be between $45 - $50 million. In the third quarter of 2025, the company reported $16.166 million in interest paid. The latest reported Debt / Equity ratio as of early December 2025 was 1.30.

Distribution and logistics costs across multiple channels are primarily embedded within the Cost of Goods Sold, which includes incoming shipping and handling costs. Holley Inc. reaches consumers through online and in-person channels.

Here's a quick look at some of the key cost-related financial metrics we have for Holley Inc. as of late 2025 data points:

You should also note the following operational cost drivers and context:

• Q1 2025 Gross margin increase was due to inventory charges in 2024 and improvement in freight costs.
• Holley Inc. achieved $3.1 million in cost reductions for Q1 2025 from purchasing savings and operational improvements.
• The company is on track to reach $6 million in operational improvements for the full fiscal year 2025.
• The EBIT margin was reported at 1.9% recently, while the profit margin from continuing operations was -5.42%.
• The company's operational earnings (EBITDA) margin was 11.7% in a recent report.

Holley Inc. (HLLY) - Canvas Business Model: Revenue Streams

Holley Inc. generates revenue primarily through the sale of its performance automotive aftermarket products across a wide spectrum of channels.

The company's product offering spans over 30 product categories, supporting sales across more than 20 brands in the core business as of Q2 2025.

Key channel performance metrics from the second quarter of 2025 illustrate the revenue mix momentum:

The full-year 2025 outlook reflects management's expectation for total top-line performance.

• Full-year 2025 Net Sales guidance is set in the range of $590 million - $605 million.

The company also noted that product innovation and strategic pricing contributed approximately $18.7 million in revenue year-to-date as of Q2 2025.