Harley-Davidson, Inc. (HOG): Business Model Canvas [Dec-2025 Updated]

You're looking at a company at a major inflection point, and honestly, understanding the mechanics behind the iconic brand's survival and pivot is key. As someone who's watched these giants for years, the late-2025 picture for Harley-Davidson, Inc. is all about strategic execution: they're wrapping up the Hardwire plan while juggling tariff costs and LiveWire's projected $70 million 2025 operating loss. The big financial move is the capital-light shift with HDFS, which unlocked about $1.25 billion this year alone, giving them the fuel to defend their premium Touring segment while pushing into new territory like Adventure Touring and EVs. Dive into the full Business Model Canvas below to see exactly how they're balancing legacy, financing, and a leaner manufacturing footprint to secure the next decade.

Harley-Davidson, Inc. (HOG) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Harley-Davidson, Inc. running lean and pushing new segments, so let's break down the hard numbers on these critical alliances.

KKR and PIMCO for HDFS capital-light model

The strategic partnership with KKR and PIMCO fundamentally changed Harley-Davidson Financial Services (HDFS) into a capital-light financing business, announced July 30, 2025. This move was structured around monetizing existing and future retail loans. Harley-Davidson, Inc. retained control of HDFS, which continues to originate and service consumer loans. The transaction involved several key financial components:

This structure is designed to reduce credit risk on the balance sheet and provide capital flexibility. The HDFS segment reported an operating income of $439 million in the third quarter of 2025, reflecting the impact of this transaction. Honestly, this deal unlocks significant cash while keeping the crucial financing arm under the company's operational control.

Global independent dealer network for sales and service

The health of the global independent dealer network remains central to Harley-Davidson, Inc.'s strategy, as dealers are the primary point of retail sales. While the exact number of global dealers isn't specified in the latest reports, inventory management is a clear focus area, showing a direct link between wholesale shipments and dealer stock levels. The company has been actively reducing inventory to ensure dealer floors are stocked appropriately for demand. Here are the recent inventory figures:

• Global dealer inventories were down 13% at the end of Q3 2025 compared to the end of Q3 2024,.
• Dealer inventory stood at 52,000 units at the end of Q3 2025.
• Dealer inventory stood at 60,000 units at the end of Q3 2024.

In North America, the focus on core products is showing results in market share, with the revamped 2025 Softail lineup contributing to an increase in the large cruiser category market share to 68%, up from 61%. The company depends on these independent dealers to execute retail sales plans effectively. If onboarding takes 14+ days, churn risk rises.

KYMCO for LiveWire at-scale manufacturing and supply chain

The partnership with KYMCO is crucial for expanding the LiveWire electric portfolio beyond its initial offerings, specifically leveraging the S2 platform for new segments. This collaboration is focused on bringing an electric maxi-scooter to market, utilizing the performance and range of the S2 powertrain. The development is a direct expansion of the existing relationship, which began with KYMCO's investment in LiveWire. The key details are centered on the product launch timeline and the initial investment:

• The debut S2-based electric maxi-scooter is planned for launch in the first half of 2026,,.
• KYMCO's initial investment in LiveWire, originating in 2022, was $100 million,.

This alliance is intended to bring LiveWire's electric performance to a commute-friendly form factor, with eventual global distribution planned. The S2 powertrain is the basis for this new vehicle, which will feature a new design language for LiveWire's first maxi-scooter offering.

Dynojet Research Inc. as a title partner for 2025 racing

Dynojet Research Inc. became the title partner for the Harley-Davidson Factory Race Team for the 2025 MotoAmerica Mission King of the Baggers road racing season, officially forming the Harley-Davidson x Dynojet Factory Race Team,,. This is a multi-year partnership focused on performance development and fan engagement. The team fielded three riders in 2025 on race-prepared Harley-Davidson Road Glide motorcycles,. The partnership saw immediate success, as Harley-Davidson x Dynojet Factory Race Team rider Kyle Wyman was crowned the 2025 Mission King of the Baggers champion on September 15, 2025. Other partners supporting the 2025 season include Rockford Fosgate, Mission Foods, Brembo, Öhlins, Akrapovič, Protolabs, SYN3 lubricants, and Screamin' Eagle Performance Parts and Accessories,,.

Finance: draft 13-week cash view by Friday.

Harley-Davidson, Inc. (HOG) - Canvas Business Model: Key Activities

You're looking at the engine room of Harley-Davidson, Inc. (HOG) right now, focusing on what they actually do to keep the whole operation running through late 2025. It's a mix of making metal, managing money, and planning for the next decade.

Manufacturing and designing core Touring, Cruiser, and Trike models (70% focus)

Harley-Davidson Motor Company (HDMC) activities center on its heritage segments, which is where the bulk of the revenue and brand equity still sits. The focus on these core models is clear from their market dominance in the U.S. large motorcycle categories as of mid-2025. The company is actively pushing its latest product refreshes, like the 2025 Softail lineup, which saw 9% growth in the U.S. market in Q3 2025, pushing the large cruiser market share up to 68% from 61% year-over-year.

Here's a look at some of the key product lines that define this activity:

• The U.S. 601+cc market share stood at 32% in Q2 2025.
• Touring segment market share in the U.S. reached 67% in Q2 2025.
• Cruiser segment market share in the U.S. was 53% in Q2 2025.
• The 2025 Trike lineup includes the Freewheeler starting at $31,999+ and the Tri Glide Ultra starting at $37,999+.
• Key 2025 Cruiser models like the Low Rider ST start at $24,199+.

The company is definitely prioritizing where it can win now. That's just smart business.

Providing retail and wholesale financing through HDFS

Harley-Davidson Financial Services (HDFS) is a critical supporting activity, though its structure shifted significantly in 2025. As of the second quarter of 2025, total financing receivables were $7.3 billion, a 9% drop from the prior year. HDFS posted a strong operating income margin of 27.1% in Q2 2025. A major strategic move involved a transaction with KKR and PIMCO, which is expected to unlock $1.25 billion in discretionary cash for Harley-Davidson, Inc.. This move transitions HDFS to a more capital-light model.

The financial services segment's expected performance for the full year 2025 reflects this new structure:

Executing the 2021-2025 Hardwire strategic plan

The Hardwire plan, set to conclude at the end of 2025, guides all major operational decisions. The focus remains on profitable growth and brand desirability. The company withdrew its full-year HDMC financial outlook in May 2025 due to uncertainties like tariffs and weakening demand, though the Q3 2025 results showed a net income of $375.2 million. The plan's core involved strengthening leadership in the core segments (Touring, Cruiser, Trike). The new CEO, Artie Starrs, took over in October 2025, reaffirming commitment to the strategic direction.

Reducing global dealer inventory levels (targeting a double-digit decline)

Inventory management has been a key activity, aimed at improving dealer profitability and brand value. The company finished 2024 with new motorcycle dealer inventory down over 4% year-over-year. By the end of Q2 2025, the company had achieved a 28% reduction in global dealer inventories compared to Q2 2024, exceeding the initial double-digit target early in the year. In Q3 2025, the focus continued, with the CEO specifically pointing to reducing touring and CVO inventories.

Research and development for electric vehicles (LiveWire Arrow powertrain)

R&D is channeled through the LiveWire subsidiary, which utilizes the proprietary S2 Arrow powertrain. This platform is designed to be modular and scalable across different vehicle types.

Key R&D and EV performance metrics as of late 2025:

• S2 Arrow powertrain peak output is 63 kW (continuous output is 30 kW).
• The S2 Alpinista Corsa concept can charge from 20 to 80 per cent in ten minutes using DC fast charging.
• Full year 2025 LiveWire unit sales guidance is 1,000 - 1,500 units.
• The expected full year 2025 operating loss for LiveWire was updated to $59 million to $69 million.

The next major product leveraging this tech, an electric maxi-scooter co-developed with KYMCO, is slated for launch in the first half of 2026.

Finance: draft 13-week cash view by Friday.

Harley-Davidson, Inc. (HOG) - Canvas Business Model: Key Resources

The iconic Harley-Davidson brand and its 120+ year legacy represent an intangible, yet critical, resource, anchoring customer loyalty and pricing power.

Harley-Davidson, Inc. supports its sales through a vast physical footprint, which as of late 2025, includes a global network of approximately 1,400 independent dealers.

Within the United States specifically, there were 629 Harley-Davidson dealerships as of October 13, 2025. California held the largest concentration with 41 locations, representing about 7% of the total US network.

The financing arm, Harley-Davidson Financial Services (HDFS), is a key enabler for both wholesale and retail transactions. HDFS reported an operating income of $439 million in the third quarter of 2025.

The financial services platform manages significant receivables, with total finance receivables at the end of Q3 2025 standing at $6.0 billion, a 24 percent decline year-over-year. Of this total, $4.1 billion was classified as held-for-sale. To manage its capital structure, HDFS announced the redemption of approximately $262.9 million principal amount of its 6.50% Medium-Term Notes due 2028, scheduled for December 12, 2025, funded from cash on hand.

Intellectual property centers around the modular LiveWire electric Arrow platform, which serves as the base for the S2 line models like the S2 Del Mar and S2 Mulholland. This proprietary, scalable system combines the motor, battery, inverter, and on-board charger.

The Arrow platform architecture allows for adaptability across different models, with the S2 version delivering a peak output of 63 kW and a continuous output of 30 kW. The platform is designed to support various configurations to cover a broad range of performance targets.

The company maintained a strong liquidity position, with cash and equivalents reported at $1.9 billion as of Q1 2025.

Here are the key financial metrics supporting the liquidity and financing resources as of the latest reported periods in 2025:

The physical distribution network relies heavily on dealer performance, which is supported by the following structure:

• Global Dealer Network Approximation: 1,400 independent dealers.
• United States Dealer Count: 629 locations as of October 13, 2025.
• Top US State by Dealer Count: California with 41 locations.
• Global Motorcycle Retail Sales Decline: 6 percent in Q3 2025 versus prior year.
• Global Dealer Inventories Reduction: Down 13 percent compared to the end of Q3 2024.

The intellectual property value is tied to the modularity of the Arrow platform, which allows for multiple vehicle types, including the S2 line and future models like the Kymco-partnered maxi-scooter expected in 2026.

Harley-Davidson, Inc. (HOG) - Canvas Business Model: Value Propositions

You're looking at the core offerings that Harley-Davidson, Inc. brings to its customers as of late 2025. It's a mix of heritage, high-end product, and financial backing.

Premium, high-margin custom motorcycles (Touring/CVO) for affluent riders.

Harley-Davidson, Inc. continues to anchor its premium offering in the Grand American Touring and Custom Vehicle Operations (CVO) segments. While management noted an intensified focus on reducing Touring and CVO inventories in the third quarter of 2025, these models represent the pinnacle of the brand's customization and prestige. For instance, the CVO Street Glide carried a starting price of $45,999 in 2025, clearly targeting the affluent rider segment. This focus on high-margin products is key, even as the company navigates softer demand. Back in 2024, the Touring, Trike, and CVO retail sales in North America were up more than 8%. The revamped 2025 Softail lineup also showed strength, achieving a 9% growth in the U.S. market, which helped lift the large cruiser category market share to 68% in Q3 2025.

Here are some of the premium model price points and segment performance indicators:

Emotional brand connection: freedom, adventure, and a unique lifestyle.

The brand connection is the intangible value Harley-Davidson, Inc. sells. The current leadership is actively looking to reintroduce elements of the brand's past appeal. The CEO noted that historical advertising aimed at younger riders featured 'immense joy' and a 'playfulness' that he intends to bring back to the brand presentation. This speaks directly to the lifestyle proposition, contrasting with the current environment where global retail motorcycle sales were down 6% in Q3 2025. The Adventure Touring segment, represented by the Pan America, is a direct play on the adventure lifestyle, contributing to a 4% increase in the company's adventure bike sales in Q3 2025.

Financial accessibility via in-house financing (HDFS).

Harley-Davidson Financial Services (HDFS) is a critical component, providing a pathway to ownership. The strategic transaction involving HDFS in 2025 is expected to unlock $1.2 to $1.25 billion in discretionary cash through the first quarter of 2026. This financial arm remains highly profitable; HDFS reported an operating income of $439 million in the third quarter of 2025. The full-year 2025 operating income guidance for HDFS was set between $525 million and $550 million. At the end of Q3 2025, total finance receivables stood at $6.0 billion. Furthermore, the company demonstrated shareholder commitment by affirming a cash dividend of US$0.18 per share for the fourth quarter of 2025.

HDFS Performance Snapshot (Latest Reported Periods):

• Q3 2025 HDFS Operating Income: $439 million
• Q2 2025 HDFS Operating Income Margin: 27.1%
• Full Year 2025 HDFS Operating Income Guidance: $525 million - $550 million
• Total Finance Receivables (End of Q3 2025): $6.0 billion

Expansion into new segments: Adventure Touring (Pan America) and electric (LiveWire).

Harley-Davidson, Inc. is actively pushing into new product categories to diversify beyond its core cruiser base. The electric segment, LiveWire, showed signs of unit sales growth in Q3 2025, with electric motorcycle unit sales increasing by 86% compared to the same quarter in 2024, moving from 99 units to 184 units. LiveWire's third-quarter revenue reached $5.7 million, a 28% increase from $4.4 million in 2024. However, the segment continues to operate at a loss, with the Q3 2025 net loss narrowing to $19.4 million from $22.7 million a year prior. The full-year 2025 operating loss guidance for LiveWire is set at $72 million to $77 million. To put the electric segment's Q1 2025 performance in context, only 33 motorcycles were sold, a 72% drop year-over-year, resulting in a loss of $20 million for that quarter.

Harley-Davidson Certified™ pre-owned program for value preservation.

While specific financial metrics for the Harley-Davidson Certified™ program weren't detailed, the focus on inventory management supports the value proposition of pre-owned assets. As of Q3 2025, global dealer inventories of new motorcycles were down 13% compared to the end of Q3 2024. This inventory reduction helps maintain the perceived value of both new and used machines. In 2024, dealer inventory levels of new motorcycles finished the year down over 4% year-over-year.

Finance: draft 13-week cash view by Friday.

Harley-Davidson, Inc. (HOG) - Canvas Business Model: Customer Relationships

Community building through the Harley Owners Group (H.O.G.) remains central to the Harley-Davidson, Inc. customer relationship strategy.

• The Harley Owners Group (H.O.G.) is the largest factory-sponsored motorcycle enthusiast organization globally.
• H.O.G. boasts membership numbering over one million people around the globe.
• HOG members typically spend 30% more than other owners on items like clothing and Harley-Davidson-sponsored events.
• The annual renewal fee for HOG membership is $59 per year after the initial complimentary year.
• The organization provides access to benefits including H.O.G. Assist emergency roadside recovery services.

Dedicated personal support is channeled through the independent dealer network, which is a critical, though currently stressed, touchpoint.

As of October 13, 2025, there were 629 Harley-Davidson dealerships operating in the United States. The network is designed to offer personal support, sales, and service, though reports indicate a contraction in the overall number of operating locations. Top-performing dealerships are recognized with awards like the Bar & Shield Award for excellence in service and customer satisfaction. For instance, in 2024, North America accounted for 63% of global retail sales, totaling 94,930 units.

Digital engagement and enhanced online touchpoints were a key focus of The Hardwire strategic plan, which concluded in 2025. The goal was to build an experience allowing the customer to choose when and how to engage across digital and physical channels. This included expanding the digital ecosystem as part of the plan's capital spending targets, which ranged between $190 million to $250 million annually. The strategy aimed to tailor the customer journey using integrated data for a personalized experience.

Curated product portfolio decisions directly influence customer loyalty, particularly within the core segments. The focus on premium models has resulted in strong performance in specific categories, which helps deepen the relationship with established riders. Touring, Trike, and CVO models saw an 8% increase in North American retail sales in 2024. The dominance of these high-margin bikes shows where the most engaged customers are spending. For example, the Street Glide and Road Glide series accounted for over 60% of U.S. sales in 2024. Furthermore, 60% of the brand's repeat customers participate in loyalty programs, citing personalized rewards as a key factor in their continued relationship.

• Touring segment retail sales in North America grew by 8% in 2024.
• Street Glide and Road Glide models represent over 60% of U.S. sales volume.
• 60% of repeat customers engage with loyalty programs.
• LiveWire electric motorcycle sales were only 33 units in Q1 2025.

Harley-Davidson, Inc. (HOG) - Canvas Business Model: Channels

You're looking at how Harley-Davidson, Inc. gets its products-from bikes to branded gear-into the hands of riders as of late 2025. The channel strategy is a mix of traditional, high-touch retail and necessary digital pivots, especially given the current economic climate affecting discretionary purchases.

Global network of authorized, independent dealerships

The authorized, independent dealership remains the primary, high-value touchpoint for new and used motorcycle sales, financing, and service. However, the network is under significant pressure. Harley-Davidson, Inc. has been actively managing dealer inventory levels, which you can see reflected in their wholesale shipments.

Here's the quick math on inventory management as of the mid-year point:

Honestly, the focus on reducing stock suggests dealers are working through a backlog while retail traffic cools. Some industry watchers defintely expect further dealership consolidation throughout 2025 as a result of this lower traffic and inventory overhang.

Direct-to-consumer digital sales for LiveWire One

For the LiveWire electric motorcycle segment, the channel strategy leans more toward direct engagement, though overall unit sales have been challenging. While the LiveWire One model offers advanced tech like Bluetooth integration and the S2 app for charging station location, the direct sales volume hasn't yet materialized into significant market penetration.

The performance data shows the current reality of this channel:

• LiveWire sold just 33 motorcycles worldwide in Q1 2025.
• Q2 2025 saw 55 bikes sold globally.
• The full-year 2025 guidance projected electric motorcycle unit sales between 1,000 and 1,500 units.
• The Q1 2025 operating loss for the LiveWire segment was $20 million.

What this estimate hides is the mix; the sales figures include all LiveWire models, not just the LiveWire One, but it clearly shows the channel is currently struggling to meet earlier aggressive volume projections.

Company-owned e-commerce for Parts, Accessories, and Apparel

The company-owned e-commerce platform, primarily `harley-davidson.com`, serves as a crucial direct channel for Parts, Accessories, and Apparel (P&A), which historically helps offset volatility in new motorcycle sales. This channel saw significant traffic in the third quarter.

Specific metrics for this digital storefront in September 2025 include:

• Online sales revenue reached approximately $9,794,729.
• The site recorded about 4,313,416 sessions.
• The Average Order Value (AOV) ranged between $175 and $200.

Still, this direct-to-consumer revenue stream is separate from the wholesale Parts & Accessories revenue reported in earnings, which was $187 million in Q2 2025.

Global manufacturing facilities (e.g., US and Thailand)

Harley-Davidson, Inc. uses a geographically distributed manufacturing footprint to optimize capacity and navigate trade dynamics. For the 2025 model year, a strategic shift was executed to balance production loads between its U.S. and international facilities.

The channel strategy here involves production allocation:

• Production for non-core Revolution Max powertrain-equipped models-specifically the Pan America, Sportster S, and Nightster-was temporarily transitioned to the Thailand facility for model-year 2025.
• This move was intended to optimize production capacity at the York, PA facility for core segments like the Grand American Touring series, Softail line, and Trikes.
• The company announced an additional $9 million investment into its U.S. manufacturing infrastructure, partly supported by a Department of Energy Grant.

The Thailand plant, established earlier to bypass tariffs on Asian/European markets, is now being used to free up U.S. capacity for the most profitable, iconic models.

Harley-Davidson, Inc. (HOG) - Canvas Business Model: Customer Segments

You're looking at the core groups Harley-Davidson, Inc. is serving as of late 2025. It's a mix of deeply established loyalty and a tough push for new relevance.

The traditional, affluent, and loyal core riders remain the bedrock, heavily concentrated in the Touring and Cruiser segments. This group drives the majority of the core motorcycle revenue, even as retail traffic slows.

• Global motorcycle retail sales for the third quarter of 2025 totaled approximately 34,000 units, a 6% year-over-year decline.
• North American retail motorcycle units sold in Q3 2025 were 23,500, down 5% versus the prior year.
• Harley-Davidson maintained a 70% share of the U.S. Touring segment and a 52% share of the U.S. Cruiser market based on year-end 2024 positioning mentioned in Q3 2025 reports.

The company's revenue performance in Q3 2025 reflects this core strength, with Motorcycles revenue hitting $822 million, a 34% increase year-over-year, driven by shipments, not retail.

For new, younger, and first-time riders, the focus is more aspirational, given the poor performance of the electric segment and the high cost of entry for new combustion models. The company recognizes the existing customer base is aging, with analysts noting the customer base willing to spend $20k-$40k is shrinking.

The lifestyle brand appeal, which captures non-riders and enthusiasts through accessories, showed modest growth in one area but a slight contraction in another for the third quarter.

• Apparel revenue for Q3 2025 was $56 million, marking a 1% increase year-over-year.
• Parts & Accessories revenue for Q3 2025 was $167 million, a 4% decrease versus the prior year.

Electric vehicle (EV) early adopters and urban commuters, served by the LiveWire division, continue to represent a segment where Harley-Davidson, Inc. is investing despite significant losses and missed targets. The company has withdrawn most of its 2025 outlook but provided specific guidance for this segment.

• LiveWire Q1 2025 unit sales were only 33 motorcycles.
• The updated full-year 2025 guidance projects a LiveWire operating loss between $72 million and $77 million.
• Total net cash use for LiveWire for the full year 2025 is expected to be $50 million to $60 million.

Finance remains a key segment enabler, with Harley-Davidson Financial Services (HDFS) operating income guidance for the full year 2025 set between $525 million and $550 million, following a transaction that unlocked over $1.2 billion in discretionary cash.

Harley-Davidson, Inc. (HOG) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive Harley-Davidson, Inc.'s operations as of late 2025. This structure is heavily influenced by material costs, strategic investments, and external trade friction, so you need to watch these line items closely.

The cost of goods sold is fundamentally tied to raw materials. While specific, current figures for total steel and aluminum costs aren't explicitly broken out for 2025, the volatility in these commodities is clearly reflected in the massive swings seen in tariff-related expenses. Harley-Davidson's manufacturing base is centered in the U.S., with three of four plants located there, including final assembly in York, Pennsylvania, and powertrain operations in Wisconsin.

Investment in future product development and manufacturing capability, part of the ongoing Hardwire strategy, remains a significant fixed cost. The original Hardwire plan targeted annual capital investments between $190 million and $250 million through 2025. For the full year 2025, the company revised this capital expenditure expectation down slightly to a range of $200,000,000 to $225,000,000.

Trade policy creates significant, unpredictable cost headwinds. The uncertainty around tariffs caused Harley-Davidson to withdraw its full-year 2025 financial outlook on May 1, 2025. Initial estimates for incremental tariff costs in 2025 were between $75 million and $100 million. Following a White House announcement, this was revised down to a range of $30 million to $55 million. However, other reports indicated the potential impact of new April 2025 tariffs could cost the company between $130 million and $175 million annually, leading to the guidance withdrawal. For context, the direct tariff cost incurred through the second quarter of 2025 was $13 million, with total direct and indirect tariff costs for the first half of the year at $17 million.

Selling, General, and Administrative (SG&A) expenses are managed through global marketing efforts and corporate overhead. As part of the broader cost-cutting under the Hardwire initiative, the company is targeting $150 million in annual savings by 2026. For the electric motorcycle unit, LiveWire, SG&A and engineering expenses were reduced by $7.0 million in the second quarter of 2025 compared to the prior year due to cost reduction activities.

The electric motorcycle division, LiveWire, continues to operate at a significant loss, representing a major drain on the cost structure. For the first quarter of 2025, LiveWire reported an operating loss of $20 million on revenue of just $3 million. For the full year 2025, the company updated its projected operating loss guidance to a range of $59 million to $69 million, down from the initial projection of $70 million to $80 million. The Q2 2025 operating loss for LiveWire was $19 million.

Here's a quick look at the key 2025 cost structure projections and actuals:

You can see the cost structure is a balancing act: managing high planned capital expenditure for the Hardwire plan while absorbing significant, volatile tariff costs and subsidizing the ongoing losses from the LiveWire segment. Finance: draft 13-week cash view by Friday.

Harley-Davidson, Inc. (HOG) - Canvas Business Model: Revenue Streams

You're looking at the core ways Harley-Davidson, Inc. brings in money, which is definitely more than just rolling new bikes off the line. The structure of their revenue streams shows a clear reliance on both product sales and the financing that helps move those products.

The Harley-Davidson Motor Company (HDMC) segment is the foundation, covering the actual motorcycles. For the third quarter of 2025, motorcycle sales revenue was reported at $1.07 billion. This is part of a broader picture where HDMC saw its revenue increase by 23 percent year-over-year in Q3 2025, driven by global motorcycle shipments increasing 33 percent versus the prior year, even as retail sales were down 6 percent in that same quarter.

The supporting revenue streams are critical, especially Parts & Accessories (P&A), which is known to be a high-margin area. Still, even this segment felt the economic pinch. For instance, in the first quarter of 2025, Parts & Accessories revenue was $143 million, representing a 14 percent decline compared to 2024. By the third quarter of 2025, the revenue for Parts & Accessories was down 4 percent year-over-year.

General Merchandise, which includes apparel and licensing, provides smaller, but steady, income. Here's a quick look at the Q3 2025 figures:

The Financial Services arm, Harley-Davidson Financial Services (HDFS), is a major contributor, generating revenue through interest income on loans and loan servicing fees. The strategic partnership finalized in 2025 significantly altered this stream's profile. The transaction is expected to unlock approximately $1.25 billion in discretionary cash for Harley-Davidson, Inc. during 2025, with the full cash release expected no later than the first quarter of 2026. This move transformed HDFS into a capital-light business.

The financial impact from HDFS is clear when you look at the operating income. For the full year 2025, HDFS operating income is expected to be in the range of $525 million to $550 million. In the third quarter alone, HDFS operating income was reported at $439 million, which reflects the impact of the new transaction structure through the end of Q3.

You can see the breakdown of the revenue sources contributing to the overall financial picture:

• Motorcycle Sales (HDMC)
• Parts & Accessories (P&A) sales
• General Merchandise (Apparel and Licensing)
• HDFS interest income and fees
• Cash proceeds from the HDFS equity sale

Finance receivables at the end of Q3 2025 totaled $6.0 billion, which was a 24 percent decline versus the prior year, largely due to the HDFS transaction where a portion was classified as held-for-sale.

Finance: draft 13-week cash view by Friday.