Holley Q1 2026 headline results

Holley (HLLY) opened 2026 with Q1 revenue of US$147.3 million and basic EPS of US$0.06, alongside net income of US$7.3 million, putting fresh quarterly profits in focus for investors watching the stock around US$2.87. The company has seen quarterly revenue move from US$153.0 million and EPS of US$0.02 in Q1 2025 to US$147.3 million and EPS of US$0.06 in Q1 2026. Meanwhile, trailing 12 month EPS shifted from a loss of US$0.20 in Q1 2025 to a profit of US$0.20 in Q1 2026, setting up a story that is now more about earnings quality and margins than simple top line scale.

See our full analysis for Holley.

With the latest numbers on the table, the next step is to see how this shift in profitability lines up with the widely followed growth, risk, and valuation narratives around Holley.

TTM earnings swing from loss to US$23.6 million

• Over the last twelve months, Holley moved from a net loss of US$24.1 million and basic EPS of US$0.20 loss in Q1 2025 to net income of US$23.6 million and basic EPS of US$0.20 profit in Q1 2026, while trailing revenue stayed in a similar band around US$600 million.
• Consensus narrative highlights that cost actions and tariff mitigation are a big part of the story, and the data backs that tension between volume and profitability:
  • Quarterly revenue has ranged between US$138.4 million and US$166.7 million since Q1 2025, yet trailing basic EPS moved from a loss of US$0.26 in Q2 2025 to a profit of US$0.20 in Q1 2026, which leans into the idea that margin work, not rapid top line expansion, is driving the earnings turnaround.
  • Analysts also talk about margin support from product and channel mix, and the fact that TTM revenue is broadly flat around US$600 million while net income has shifted from a US$30.4 million loss in Q2 2025 to a US$23.6 million profit in Q1 2026 suggests the recent profit improvement is coming through efficiency and pricing rather than outsized revenue growth.

P/E of 14.6x against lower 5.17 US$ target

• At a share price of US$2.87 and trailing basic EPS of about US$0.20, Holley is trading on a P/E of 14.6x, compared with the Auto Components industry at 18.9x, a peer average of 44.6x, and an analyst consensus price target of US$5.17.
• Bulls point to the valuation gap as a key part of their case, and the current numbers give that argument some support but also raise questions:
  • The bullish narrative leans on earnings forecasts of roughly 27.2% growth per year, and with trailing net income at US$23.6 million versus historical five year declines of about 20.2% annually, the recent move to profitability offers some backing for the idea that the business is in a different phase than its longer term track record suggests.
  • At the same time, the DCF fair value of US$14.18 is well above both the current price and the US$5.17 analyst target, so anyone leaning on the bullish view needs to be comfortable that the current P/E discount and the TTM profitability shift are enough to justify such a wide gap between price, DCF fair value and consensus expectations.

Bulls argue that this combination of a P/E discount, a turn to profitability, and a wide gap to DCF fair value could set up a very different long term story for Holley, and you can see how that thesis is built out in the 🐂 Holley Bull Case.

Interest coverage risk against 27.2% earnings growth forecast

• One of the key risk flags is that interest payments are not well covered by trailing earnings, even as those same earnings are forecast to grow about 27.2% per year from a TTM net income base of US$23.6 million.
• Bears focus on this balance between growth forecasts and financial pressure, and the reported data underline why they stay cautious:
  • Over the past five years, trailing earnings declined at roughly 20.2% per year and the company only became profitable in the last year, so the current TTM profit of US$23.6 million sits against a relatively short record of positive earnings that may not yet fully support the existing debt load.
  • With revenue expected to rise about 5% per year, below the wider US market forecast of 11.3% per year, skeptics argue that modest top line growth could limit how quickly earnings scale relative to interest obligations, keeping balance sheet risk in focus even if margin work continues to help EPS.

Skeptics warn that until earnings clearly outpace interest costs, this mix of modest revenue growth and a short profitability record keeps the cautious view on the table for Holley, something that is unpacked in more detail in the 🐻 Holley Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Holley on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Seen enough to sense there is both risk and opportunity here? Now move quickly, review the underlying numbers yourself, and weigh the 4 key rewards and 1 important warning sign.

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Holley’s recent profit improvement still sits against modest revenue growth, ongoing interest coverage concerns, and a relatively short track record of consistent earnings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.