Fox Factory Holding (FOXF) Earnings Date & Reports

Key Takeaways

• Fox Factory Holding reported third quarter fiscal 2026 net sales of $338.4 million, down 10.1% from the prior-year period.
• Adjusted diluted earnings per share (EPS) came in at $0.54, well above the prior-year quarter's $0.23 and ahead of the roughly $0.32 consensus estimate.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $50.4 million, including about $12 million of IEEPA (International Emergency Economic Powers Act) tariff refunds; excluding those refunds, the figure was roughly $38 million.
• The company's Marucci Sports divestiture closed on September 25, 2026, contributing about $33 million to quarterly sales and funding a significant debt reduction.
• Full-year fiscal 2026 net sales guidance was lowered to a range of $1.35 billion to $1.38 billion, reflecting persistent cost and demand pressures.
• Chief Executive Officer Michael Dennison stepped down in October, with Douglas Grimm named interim CEO.
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Earnings Context and Why It Matters

Fox Factory Holding Corp. (FOXF) designs and manufactures premium performance-defining products across powered vehicles, aftermarket applications, and specialty sports. This third quarter fiscal 2026 report, for the period ended October 2, 2026, arrived during a difficult stretch for the company. Management had already pre-announced disappointing preliminary results on October 16, cutting guidance and disclosing the CEO transition. Investors are closely watching whether profit-optimization efforts, the Marucci divestiture, and an improving powersports demand backdrop can offset elevated input costs and macroeconomic pressure on dealers and consumers. The report serves as a key checkpoint on the company's deleveraging progress and margin-recovery strategy.

Reported Results

Total consolidated net sales for the third quarter of fiscal 2026 were $338.4 million, a decrease of 10.1% year over year. The figure landed near the top of the company's October 16 preliminary range of $336 million to $340 million and modestly above the consensus estimate of roughly $337 million. Gross margin improved to 31.5% from 30.4% a year earlier, helped by IEEPA tariff refunds but partially offset by unfavorable mix and higher input costs.

Adjusted net income was $22.7 million, or $0.54 per diluted share, compared with $9.9 million, or $0.23 per diluted share, in the prior-year quarter. Adjusted EBITDA was $50.4 million, including about $12 million of IEEPA tariff refunds. Excluding those refunds, adjusted EBITDA was approximately $38 million, near the low end of the preliminary range and reflecting later-than-expected timing of cost savings.

By segment, Powered Vehicles Group net sales rose 4.1% to $131 million, supported by a 28.8% increase in powersports, while Aftermarket Applications Group net sales fell 20.4% to $93.8 million amid limited chassis availability and softer dealer demand. On the balance sheet, total debt fell to $397.4 million from $673.5 million at the start of the year, driven by roughly $200 million in Marucci divestiture proceeds, reducing net leverage to approximately 2.4x.

For the fourth quarter, management guided net sales of $287 million to $313 million and adjusted EBITDA of $25 million to $30 million. Full-year guidance was narrowed to net sales of $1.35 billion to $1.38 billion and adjusted EBITDA of $143 million to $148 million, excluding about $14 million of IEEPA tariff refunds.

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Market Reaction and Investor Sentiment

Sentiment around Fox Factory Holding has been decidedly cautious. Shares fell sharply on October 16, 2026, after the company pre-announced preliminary results that missed guidance, cut its full-year outlook, and disclosed the departure of CEO Michael Dennison. The preliminary sales range of $336 million to $340 million fell well short of the prior $355 million to $380 million guidance, and adjusted EBITDA guidance was reduced by roughly $41 million at the midpoint. The November 5 earnings call confirmed these pressures, with management citing a supplier disruption in Powered Vehicles, upfit business challenges, and softer bike sales, even as powersports demand improved. Investors remain focused on whether margin recovery and deleveraging can offset ongoing cost inflation.

Forward Outlook and Key Factors to Monitor

Fox Factory Holding enters its fourth quarter with a tempered outlook. Management guided fourth-quarter net sales of $287 million to $313 million, reflecting the absence of Marucci, constrained chassis availability, and elevated input costs including aluminum, steel, and freight. The company expects the supplier disruption in its Powered Vehicles Group to continue through the fourth quarter, though it views the associated higher costs as temporary.

Investors should monitor several signals in the quarters ahead. First, the pace of the profit-optimization program matters: the company captured about $41 million of gross savings against its $50 million fiscal 2026 target, but those savings were largely offset by external cost increases. Second, the search for a permanent CEO, led by Heidrick & Struggles, could shape the 2027 strategic plan, with more detail expected on the fourth-quarter call in February.

Finally, watch the demand trajectory in powersports, which has now grown for three consecutive quarters as original equipment manufacturers work through channel inventory. Continued improvement there, combined with disciplined cost management and the benefits of reduced leverage, will be central to whether the company can stabilize margins into fiscal 2027.

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