Fox Factory (NASDAQ:FOXF) Releases Quarterly Earnings Results, Beats Expectations By $0.22 EPS

Fox Factory (NASDAQ:FOXF) issued its earnings results on Thursday. The company reported $0.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.22, FiscalAI reports. The business had revenue of $338.41 million during the quarter, compared to analysts’ expectations of $337.56 million. Fox Factory had a positive return on equity of 5.57% and a negative net margin of 20.39%. Fox Factory’s quarterly revenue was down 10.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.23 EPS.

Here are the key takeaways from Fox Factory’s conference call:

• Third-quarter results missed expectations: sales fell 10.1% year over year to $338.4 million, while adjusted EBITDA was about $38 million excluding tariff refunds, with an 11.3% margin. Management cited supplier disruption and extra costs in Powered Vehicles, operational challenges in upfit, softer bike sales, and persistent inflation.
• The Marucci sale for $225 million helped reduce net leverage from 3.7x to approximately 2.4x, with $200 million of proceeds applied to debt. Fox expects the lower debt balance to reduce annualized interest expense by about $16 million, rising to approximately $17 million after the deferred payment is received.
• Underlying demand was mixed: Powered Vehicles sales rose 4.1%, led by 28.8% growth in powersports, while bike sales were softer and Aftermarket Applications sales fell 20.4%, including pressure from chassis constraints and upfit operations. Management said powersports demand and orders remain strong, but acknowledged upfit execution and consumer conditions need to improve.
• Fox expects fourth-quarter sales of $287 million to $313 million and adjusted EBITDA of $25 million to $30 million, excluding Marucci and additional tariff refunds. Full-year adjusted EBITDA guidance is now $143 million to $148 million excluding about $14 million in refunds; management expects combined Powered Vehicles and Aftermarket Applications margins to be approximately flat year over year in Q4.
• Interim CEO Doug Grimm is pushing a “One Fox” operating approach focused on plant productivity, supply-chain coordination, cost savings, and recovering inflation and freight costs through pricing. Fox reported $41 million of gross savings through nine months toward its $50 million goal, while saying more work is needed to convert savings into bottom-line results.

Fox Factory Trading Up 5.2%

FOXF stock traded up $0.88 during trading on Friday, hitting $17.80. The company had a trading volume of 2,194,612 shares, compared to its average volume of 1,220,163. The company has a quick ratio of 1.55, a current ratio of 3.10 and a debt-to-equity ratio of 0.96. The firm has a 50-day moving average price of $18.09 and a 200-day moving average price of $18.09. Fox Factory has a 12 month low of $13.08 and a 12 month high of $22.09. The stock has a market cap of $748.13 million, a price-to-earnings ratio of -1.83, a PEG ratio of 1.66 and a beta of 1.39.

Analysts Set New Price Targets

A number of equities research analysts recently commented on the company. Stifel Nicolaus set a $25.00 price target on Fox Factory in a research report on Wednesday, September 30th. B. Riley Financial dropped their price target on Fox Factory from $20.00 to $16.00 and set a “neutral” rating for the company in a report on Monday, October 19th. Zacks Research downgraded Fox Factory from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, October 20th. Roth Capital reissued a “neutral” rating and issued a $17.00 price objective on shares of Fox Factory in a research note on Monday, October 19th. Finally, Weiss Ratings upgraded Fox Factory from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, October 6th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Fox Factory has a consensus rating of “Hold” and a consensus price target of $19.60.

Key Headlines Impacting Fox Factory

Here are the key news stories impacting Fox Factory this week:

• Positive Sentiment: Q3 earnings were $0.54 per share, above the $0.32 consensus and up from $0.23 a year earlier. Revenue of $338.41 million also narrowly topped estimates of $337.56 million. Fox Factory reports Q3 fiscal 2026 results
• Positive Sentiment: The Q3 highlights cited a reduction in leverage to about 2x, a balance-sheet improvement that may give the company greater flexibility. Q3 earnings call highlights
• Neutral Sentiment: Fox Factory appointed Troy Henige as chief technology officer. The leadership change could matter for future product and technology initiatives, though no immediate financial impact was provided. Fox Factory appoints Troy Henige as CTO
• Negative Sentiment: Revenue was down 10.1% from a year earlier, indicating continued sales pressure. Separate coverage also highlighted a substantial loss tied to the Marucci sale, tempering the positive message from the per-share earnings beat. Fox Factory posts big loss on Marucci sale

About Fox Factory

Fox Factory Holding Corp. designs, engineers, manufactures and markets performance products for cycling, powered vehicles and other recreational applications. The company is best known for its suspension systems and components, including forks, shocks and related technologies used on mountain bikes, motorcycles, snowmobiles, trucks and side-by-side vehicles.

Through brands including FOX, Race Face, Easton Cycling, Marzocchi, Ride Concepts, Bell, Giro and CamelBak, Fox Factory offers bicycle components, wheels, drivetrain and cockpit products, cycling shoes, helmets, protective equipment, hydration products and apparel.