What happened
Fox Factory Holding Corp. (NASDAQ: FOXF) named independent director Douglas Grimm interim CEO and cut fiscal 2026 guidance on Oct. 16, 2026.
Mike Dennison is stepping down as CEO and as a board member, and the board started a search for a permanent CEO.
The company said preliminary third-quarter net sales should be $336 million to $340 million and adjusted EBITDA $38 million to $42 million for the quarter ended Oct. 2, 2026.
Fourth-quarter net sales are now expected at $287 million to $313 million, with adjusted EBITDA of $23 million to $29 million.
For fiscal 2026, Fox Factory lowered net sales to $1.35 billion to $1.38 billion and adjusted EBITDA to $140 million to $150 million.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Third-quarter net sales | $336 million to $340 million | Preliminary third-quarter results | |
| Third-quarter adjusted EBITDA | $38 million to $42 million | Preliminary third-quarter results | |
| Fourth-quarter net sales outlook | $287 million to $313 million | Updated fourth-quarter outlook | |
| Fiscal 2026 net sales outlook | $1.35 billion to $1.38 billion | Updated fiscal 2026 outlook | |
| Fiscal 2026 adjusted EBITDA outlook | $140 million to $150 million | Updated fiscal 2026 outlook |
Read more: Fox Factory Holding (FOXF) stock analysis and investment case
Why it matters
OptimistFi's case is that Fox Factory needs to prove its brand and engineering can again turn demand into margins, cash flow and balance-sheet repair.
The lower outlook weakens that case because fiscal 2026 net sales now run $1.35 billion to $1.38 billion, down from $1.42 billion to $1.47 billion.
Adjusted EBITDA falls to $140 million to $150 million from $176 million to $196 million.
OptimistFi's calculation puts the sales cut at $70 million to $90 million.
Fox Factory said about $63 million of the sales reduction reflects Marucci Sports, including about $50 million of fourth-quarter sales that had been in prior guidance.
The company said lower sales and margin at Marucci Sports, a supply disruption in the Powered Vehicles Group, higher operating costs and softer bike sales weighed on the quarter.
Fox Factory said fourth-quarter net sales for the remaining core businesses, excluding Marucci Sports, are in line with prior underlying guidance.
It also said it has received the majority of the IEEPA tariff refunds it expects.
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What's next
Fox Factory scheduled an earnings conference call for Nov. 5, 2026, and said complete results will be included in its Quarterly Report on Form 10-Q for the quarter ended Oct. 2, 2026.
Results that show the remaining core businesses holding the new fourth-quarter range would help.
Another step down in sales or margins would hurt.
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Sources
- Fox Factory press release filed as Exhibit 99.1 to Form 8-K — Announces the CEO transition, preliminary third-quarter fiscal 2026 results and updated fiscal 2026 outlook.
- SEC filing
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
