DOUBLE-DIGIT CORE GROWTH IN THREE OF FOUR DIVISIONS
RETURN TO NET SALES GROWTH REFLECTS STRENGTH ACROSS THE BUSINESS
LEVERAGE RATIO LOWEST LEVEL IN THE LAST FOUR YEARS
Advancing Portfolio Rebalancing Initiative to Enhance Focus, Simplify Operations, and Support Second-Half 2026 Performance
NASHVILLE, Tenn., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Holley Performance Brands $(HLLY)$, a leader in automotive aftermarket performance solutions, today announced financial results for its second quarter ended June 28, 2026.
Second Quarter Highlights vs. Prior Year Period
-- Net Sales grew 3.2% to $172.0 million compared to $166.7 million last
year
-- Core business net sales1 grew by 4.9% after excluding portfolio
divestitures and portfolio rebalancing initiative.
-- Net Loss was $(2.4) million, or $(0.02) per diluted share, compared to
Net Income of $10.9 million, or $0.09 per diluted share, last year
-- Includes a $28.3 million loss on the sale of non-core assets
related to the Company's portfolio rebalancing initiative.
-- Net Cash Provided by Operating Activities was $47.1 million compared to
$40.5 million last year
-- Adjusted Net Income2 was $24.0 million compared to $10.6 million last
year
-- Adjusted EBITDA2 was $33.8 million compared to $36.4 million last year
-- Adjusted EBITDA margin2 was 19.6% compared to 21.9% last year
-- Free Cash Flow2 was $40.9 million compared to $35.7 million last year
(1) (Core business net sales excludes sales of divested businesses and the portfolio rebalancing initiative.)
(2) (See "Use and Reconciliation of Non-GAAP Financial Measures" below.)
"Our second quarter results reflect positive core growth and continued execution against the strategic priorities we outlined earlier this year, with three of our four business segments delivering year-over-year core growth," said Matthew Stevenson, President and Chief Executive Officer of Holley.
Stevenson continued, "We believe we are entering the second half of the year with solid momentum, supported by new national retailer placements, a healthy cadence of product innovation, and several important launches slated for the coming months. At the same time, we have reinvigorated our marketing calendar with a greater focus on brand activation and enthusiast engagement, helping to strengthen awareness and demand across our portfolio.
"During the quarter we completed the sale of our non-core Restoration brands, including Scott Drake and Brothers Trucks, a step that further reduces complexity and enables us to concentrate resources on our highest-priority growth opportunities. We remain focused on disciplined execution and believe the actions we have taken position Holley for continued progress in the periods ahead."
Jesse Weaver, Chief Financial Officer of Holley, added, "The second quarter showcased our continued focus on cash generation, balance sheet improvement, and disciplined capital allocation. Our underlying operating performance was stronger than the year-over-year Adjusted EBITDA comparison suggests: the prior-year quarter included a one-time, non-cash benefit from the capitalization of tariff costs that did not repeat this year, and adjusted for that item, we believe Adjusted EBITDA performance was approximately flat year-over-year. We generated strong free cash flow in the quarter and year-to-date, which enabled us to continue making progress on our capital priorities.
"During the quarter, we repurchased approximately $2.0 million of our common stock, reflecting our confidence in the long-term value of the business. Following a $15.0 million voluntary debt prepayment made after quarter-end, we have now reduced debt by $115.0 million through voluntary prepayments since September 2023. Combined with our strong cash generation, these actions contributed to another quarter of leverage reduction helping us maintain progress towards finishing the year below our targeted leverage ratio of 3.5x.
"Based on our first-half performance and the opportunities we see in the second half of the year, we are reiterating our full-year guidance and remain focused on delivering sustainable value for our shareholders."
Strategic Business Highlights and Recent Events
-- 27 brands delivered growth across DTC and B2B channels.
-- Generated $40.9 million of free cash flow and remain on track for
year-end leverage below 3.5x.
-- Long Term Strategic initiatives drove $13.4 million in revenue and
delivered $8.3 million in cost savings.
-- Realigned marketing to strengthen consumer engagement and brand
activation.
-- Repurchased $2.0 million of shares, reinforcing confidence in our
long-term value creation.
-- Continued portfolio rebalancing through the divestiture of the non-core
Restoration brands.
-- Reduced debt by an additional $15.0 million, bringing total debt
reduction to $115.0 million since September 2023.
-- Well positioned for H2 2026 with new retail placements and a strong
product launch pipeline.
Outlook
**For the year ending December 31, 2026, core business revenue guidance remains unchanged:
Metric Current Full Year 2026 Outlook
Net Sales $610 - $640 million
Core Business Growth Rate %(1) 2% to 7%
---------------------------------------------- ------------------------------
Adjusted EBITDA* $127 - $137 million
---------------------------------------------- ------------------------------
Capital Expenditures $15 - $20 million
---------------------------------------------- ------------------------------
Depreciation and Amortization Expense $24 - $26 million
---------------------------------------------- ------------------------------
Interest Expense (excluding collar
revaluation) $42 - $47 million
---------------------------------------------- ------------------------------
(1) (Core Business Growth Rate, excludes impact from Portfolio Rebalancing Initiative.)
* Holley is not providing reconciliations of forward-looking full year 2026 Adjusted EBITDA outlook because certain information necessary to calculate the most comparable GAAP measure, net income, is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, Holley is unable to provide these forward-looking reconciliations without unreasonable effort. Accordingly, Holley is relying on the exception provided by Item 10(e)(1)(i)$(B)$ of Regulation S-K to exclude these reconciliations.
Holley notes that its outlook for the year-ending December 31, 2026 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 13761658.
For those unable to participate, a telephone replay recording will be available until Wednesday, August 12, 2026. To access the replay, please call 877-660-6853 (Toll Free) or 201-612-7415 (Toll) and enter confirmation code 13761658. 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 American Performance, 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 portfolio rebalancing efforts and 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 and successfully exiting non-core, low profit businesses; 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 complete and 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) Holley's ability to anticipate, manage, and mitigate the impact of changing trade policies, including tariffs; 20) disruptions and costs associated with doing business in certain countries; 21) Holley's ability to adopt and react to risks posed by new technology; 22) inability to predict how products will ultimately be used; 23) 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 24) 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, 2025 filed with the U.S. Securities and Exchange Commission ("SEC") on March 16, 2026, 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 / Jenna Kozlowski
Solebury Strategic Communications
203-428-3324
holley@soleburystrat.com
Media Relations Contacts:
Nathan Espinosa/Michael Murray
Kahn Media
818-881-5246
Holley@KahnMedia.com
HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(In thousands)
(Unaudited)
For the thirteen weeks ended For the twenty-six weeks ended
------------------------------------------- -------------------------------------------
June 28, June 29, Variance Variance June 28, June 29, Variance Variance
2026 2025 ($) (%) 2026 2025 ($) (%)
------- ------- --------- ---------- ------- ------- --------- ----------
Net sales $172,007 $166,661 $ 5,346 3.2% $319,337 $319,705 $ (368) -0.1%
Cost of goods sold 101,463 97,103 4,360 4.5% 188,057 186,059 1,998 1.1%
------- ------- ------- ------ ------- ------- ------- ------
Gross profit 70,544 69,558 986 1.4% 131,280 133,646 (2,366) -1.8%
Selling, general, and
administrative 40,427 32,954 7,473 22.7% 75,829 69,653 6,176 8.9%
Research and
development costs 3,740 5,086 (1,346) -26.5% 7,736 9,179 (1,443) -15.7%
Amortization of
intangible assets 3,416 3,350 66 2.0% 6,844 6,882 (38) -0.6%
Restructuring costs 840 355 485 136.7% 1,715 818 897 109.7%
Loss on sale of
assets 28,259 -- 28,259 nm 28,224 -- 28,224 nm
Other operating
(income) expense (8,903) 299 (9,202) nm (9,341) 257 (9,598) nm
------- ------- ------- ---------- ------- ------- ------- ----------
Total operating
expense 67,779 42,044 25,735 61.2% 111,007 86,789 24,218 27.9%
------- ------- ------- ------ ------- ------- ------- ------
Operating
income 2,765 27,514 (24,749) -89.9% 20,273 46,857 (26,584) -56.7%
Change in fair value
of warrant
liability (548) (7) (541) nm (1,579) (80) (1,499) nm
Change in fair value
of earn-out
liability (1,258) (219) (1,039) nm (1,772) (404) (1,368) nm
Interest expense, net 8,201 13,374 (5,173) -38.7% 18,119 29,082 (10,963) -37.7%
------- ------- ------- ------ ------- ------- ------- ------
Total
non-operating
expense 6,395 13,148 (6,753) -51.4% 14,768 28,598 (13,830) -48.4%
------- ------- ------- ------ ------- ------- ------- ------
Income (loss)
before income
taxes (3,630) 14,366 (17,996) -125.3% 5,505 18,259 (12,754) -69.8%
Income tax (benefit)
expense (1,200) 3,503 (4,703) nm 679 4,579 (3,900) nm
------- ------- ------- ---------- ------- ------- ------- ----------
Net income (loss) $ (2,430) $ 10,863 $(13,293) -122.4% $ 4,826 $ 13,680 $ (8,854) -64.7%
======= ======= ======= ====== ======= ======= ======= ======
Comprehensive income
(loss):
Foreign currency
translation
adjustment (1,869) 1,239 (3,108) -250.9% (2,825) 954 (3,779) -396.2%
------- ------- ------- ------ ------- ------- ------- ------
Total
comprehensive
income (loss) $ (4,299) $ 12,102 $(16,401) -135.5% $ 2,001 $ 14,634 $(12,633) -86.3%
======= ======= ======= ====== ======= ======= ======= ======
Common Share Data:
Basic net income
(loss) per share $ (0.02) $ 0.09 $ (0.11) -122.2% $ 0.04 $ 0.11 $ (0.07) -65.0%
Diluted net income
(loss) per share $ (0.02) $ 0.09 $ (0.11) -122.3% $ 0.04 $ 0.11 $ (0.07) -65.2%
Weighted average
common shares
outstanding - basic 120,285 119,163 1,122 0.9% 120,050 119,006 1,044 0.9%
Weighted average
common shares
outstanding -
diluted 120,285 119,791 494 0.4% 121,149 119,677 1,472 1.2%
------- ------- ------- ------ ------- ------- ------- ------
nm - not meaningful
HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
As of
---------------------------
June 28, December 31,
2026 2025
----------- --------------
Assets
----------------------------------------
Cash and cash equivalents $ 69,020 $ 37,231
Accounts receivable, less allowance for
credit losses of $2,086 and $1,856,
respectively 64,158 57,895
Inventory 180,202 205,661
Prepaids and other current assets 17,231 15,374
--------- ----------
Total current assets 330,611 316,161
Property, plant, and equipment, net 50,174 45,127
Goodwill 370,958 372,340
Other intangibles assets, net 369,753 396,910
Right-of-use assets 40,872 33,415
--------- ----------
Total assets $1,162,368 $ 1,163,953
========= ==========
Liabilities and Stockholders' Equity
----------------------------------------
Accounts payable $ 55,972 $ 60,121
Accrued liabilities 40,553 48,316
Accrued interest 3,401 115
Current portion of long-term debt 8,207 6,571
--------- ----------
Total current liabilities 108,133 115,123
Long-term debt, net of current portion 518,606 516,078
Warrant liability 444 2,024
Earn-out liability 273 2,045
Deferred taxes 47,362 46,540
Other noncurrent liabilities 37,812 33,218
--------- ----------
Total liabilities 712,630 715,028
Common stock 12 12
Additional paid-in capital 385,684 384,873
Treasury stock, at cost, 707,113 and zero
shares held as of June 28, 2026 and
December 31, 2025, respectively (2,000) --
Accumulated other comprehensive income
(loss) (2,705) 120
Retained earnings 68,747 63,920
--------- ----------
Total stockholders' equity 449,738 448,925
--------- ----------
Total liabilities and stockholders'
equity $1,162,368 $ 1,163,953
========= ==========
HOLLEY INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
For the thirteen weeks For the twenty-six weeks
ended ended
----------------------- ------------------------
June 28, June 29, June 28, June 29,
2026 2025 2026 2025
------------ --------- ----------- -----------
Operating
Activities
-------------
Net income
(loss) $ (2,430) $ 10,863 $ 4,826 $ 13,680
Adjustments to
reconcile to
net cash 34,552 9,389 43,321 23,849
Changes in
operating
assets and
liabilities 14,989 20,235 (3,893) (4,892)
------- ------- ------ -------
Net cash
provided by
operating
activities 47,111 40,487 44,254 32,637
Investing
Activities
-------------
Capital
expenditures (6,169) (4,828) (9,640) (7,808)
Acquisition of
license
agreement -- (8,330) (3,570) (13,090)
Business
acquisition,
net of cash
acquired -- -- (2,776) --
Proceeds from
the disposal
of assets 9,957 -- 9,957 --
------- ------- ------ -------
Net cash
provided by
(used in)
investing
activities 3,788 (13,158) (6,029) (20,898)
Financing
Activities
-------------
Net change in
debt (11,643) (1,832) (1,643) (3,608)
Payments from
stock-based
award
activities (1,490) (256) (2,486) (850)
Treasury stock
purchase, at
cost (2,000) -- (2,000) --
------- ------- ------ -------
Net cash used
in financing
activities (15,133) (2,088) (6,129) (4,458)
Effect of
foreign
currency rate
fluctuations
on cash 188 (467) (307) 474
Net change in
cash and cash
equivalents 35,954 24,774 31,789 7,755
Cash and Cash
Equivalents
-------------
Beginning of
period $ 33,066 $ 39,068 $37,231 $ 56,087
------- ------- ------ -------
End of period $ 69,020 $ 63,842 $69,020 $ 63,842
======= ======= ====== =======
We present certain information with respect to EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Credit Agreement Total Leverage Ratio (the "Leverage Ratio"), 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, the Leverage Ratio, 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. In addition, beginning with the quarter ended June 28, 2026, we have excluded from Adjusted EBITDA as a notable item any tariff refund income received in the quarter, as the refunds are non-recurring in nature for tariff costs incurred in the past and are not reflective of our ongoing performance. 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 For the twenty-six weeks
ended ended
--------------------------- ----------------------------
June 28, June 29, June 28, June 29,
2026 2025 2026 2025
------------- ------------ ------------- -------------
Net Income (Loss) $ (2,430) $ 10,863 $ 4,826 $ 13,680
Adjustments:
Interest
expense, net 8,201 13,374 18,119 29,082
Income tax
(benefit)
expense (1,200) 3,503 679 4,579
Depreciation 2,650 2,215 5,174 4,514
Amortization 3,417 3,350 6,844 6,882
------- --- ------- ------- --- ------- ---
EBITDA 10,638 33,305 35,642 58,737
Restructuring
costs 840 355 1,715 818
Change in fair
value of
warrant
liability (548) (7) (1,579) (80)
Change in fair
value of
earn-out
liability (1,258) (219) (1,772) (404)
Loss on sale of
assets 28,259 -- 28,224 --
Equity-based
compensation
expense 1,565 1,408 3,296 2,903
Notable items 3,161 1,287 4,889 1,484
Other operating
(income)
expense (8,903) 299 (9,341) 257
------- ------- ------- ------- ---
Adjusted EBITDA $ 33,754 $ 36,428 $ 61,074 $ 63,715
======= === ======= ======= === ======= ===
Net Sales $172,007 $166,661 $319,337 $319,705
Net income (loss)
margin (1.4%) 6.5% 1.5% 4.3%
Adjusted EBITDA
Margin 19.6% 21.9% 19.1% 19.9%
We define the Leverage Ratio as Net Debt divided by our Credit Agreement 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 June 28, 2026 December 31, 2025
------------------- ---------------------
Net Income $ 10,322 $ 19,175
Adjustments:
Interest expense, net 40,870 51,833
Income tax expense 5,558 9,458
Depreciation 10,364 9,704
Amortization 13,740 13,778
-------------- --------------
EBITDA 80,854 103,948
Change in fair value
of warrant liability (288) 1,211
Change in fair value
of earn-out
liability (471) 897
Equity-based
compensation expense 8,556 8,163
Loss on sale of
assets 28,259 --
Gain on early
extinguishment of
debt (93) (93)
Restructuring costs 3,800 2,903
Notable items 8,284 4,882
Other expense (7,525) 2,110
-------------- --------------
Adjusted EBITDA 121,376 124,021
Additional permitted
charges 7,633 7,265
-------------- --------------
Adjusted EBITDA per Credit
Agreement $ 129,009 $ 131,286
============== ==============
Total debt $ 532,830 $ 529,557
Less: permitted cash
and cash equivalents 50,000 37,231
-------------- --------------
Net indebtedness per Credit
Agreement $ 482,830 $ 492,326
============== ==============
Credit Agreement Total 3.74 x 3.75 x
Leverage Ratio
We define Adjusted Net Income as earnings excluding the effect of changes in the fair value of the warrant liability, changes in the fair value of the earn-out liability, loss on sale of assets, 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 For the twenty-six
weeks ended weeks ended
--------------------- -----------------------
June 28, June 29, June 28, June 29,
2026 2025 2026 2025
----------- -------- ----------- ----------
Net Income
(Loss) $(2,430) $10,863 $ 4,826 $13,680
Special
items:
Adjust for:
change in
fair value
of warrant
liability (548) (7) (1,579) (80)
Adjust for:
change in
fair value
of
earn-out
liability (1,258) (219) (1,772) (404)
Adjust for:
loss on
sale of
assets 28,259 -- 28,224 --
------ ------ ------ ------
Adjusted Net
Income $24,023 $10,637 $29,699 $13,196
====== ====== ====== ======
For the thirteen For the twenty-six weeks
weeks ended ended
--------------------- -------------------------
June 28, June 29, June 28, June 29,
2026 2025 2026 2025
---------- --------- ---------- -------------
Net (Loss)
Income per
Diluted
Share $(0.02) $ 0.09 $ 0.04 $ 0.11
Special
items:
Adjust for:
change in
fair value
of warrant
liability -- -- (0.01) --
Adjust for:
change in
fair value
of
earn-out
liability (0.01) -- (0.01) --
Adjust for:
loss on
sale of
assets 0.23 -- 0.23 --
----- -------- ----- ---------
Adjusted
Diluted EPS $ 0.20 $ 0.09 $ 0.25 $ 0.11
===== ======== ===== =========
We define Free Cash Flow as net cash provided by operating activities minus cash payments for capital expenditures, net of fixed asset dispositions not related to brand divestitures. 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 For the twenty-six
weeks ended weeks ended
--------------------- -----------------------
June 28, June 29, June 28, June 29,
2026 2025 2026 2025
----------- -------- ----------- ----------
Net Cash
Provided by
Operating
Activities $47,111 $40,487 $44,254 $32,637
Capital
expenditures,
net of
dispositions (6,169) (4,828) (9,640) (7,808)
------ ------ ------ ------
Free Cash Flow $40,942 $35,659 $34,614 $24,829
====== ====== ====== ======
Comments