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FOX FACTORY HOLDING CORP (FOXF)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 2026 primary documents (8‑K 2.02 press release and earnings call transcript) were not available in SEC/IR sources at this time; searches of the company’s press releases page and filings returned no Q1 2026 materials. Consensus for Q1 2026 stands at Revenue $357.66M*, EPS $0.24*, EBITDA $37.17M*, with 3 revenue and 4 EPS estimates .
  • Recent performance: Q3 2025 Revenue $376.36M, GAAP EPS $(0.02), Adjusted EPS $0.23, Adjusted EBITDA $44.4M; strength in PVG (+15% YoY) and AAG (+17% YoY) offset SSG (-11% YoY) .
  • Guidance reset (Nov 2025): Q4 2025 net sales $340–$370M, adjusted EPS $0.05–$0.25; FY 2025 net sales $1.445–$1.475B, adjusted EPS $0.92–$1.12; management signaled a challenging 2026 macro and “phase two” optimization focus on margins/FCF and deleveraging .
  • Key swing factors into Q1 2026: resolution of aluminum supplier fire (management expects mid‑Q1 normalization), SSG retail inventory conservatism, tariff cost trajectory and mitigation, and execution on optimization plan .

What Went Well and What Went Wrong

What Went Well

  • PVG delivered 15% YoY net sales growth in Q3 2025 ($125.9M) with sequential improvement; insourcing and product innovation (Live Valve aftermarket launch; Stratton Shock Solutions) support margin recovery .
  • AAG net sales rose 17.4% YoY to $117.8M in Q3; aftermarket components gained share, and a high‑profile OEM performance truck program launched with strong early demand .
  • Cost reduction program on track to deliver $25M in FY 2025; credit agreement maturity extended to October 2030, enhancing flexibility .

Management quotes:

  • “We delivered net sales growth of 5% and improved adjusted EBITDA by 6%…driven by organic growth in AAG…[and] PVG…” .
  • “Our $25 million cost reduction program remains on track for full delivery this year and we are preparing for phase two…” .
  • “We launched our advanced software‑controlled Live Valve Suspension for the aftermarket…This is the most advanced technology available in the off‑road aftermarket…” .

What Went Wrong

  • SSG underperformed expectations in Q3 2025 as OEMs/distributors/retailers targeted lean inventories into year‑end; net sales fell 11% YoY to $132.7M .
  • Tariff headwinds intensified; FY 2025 pre‑mitigated tariff impact revised to ~$50M (from ~$38M), pressuring margins across segments .
  • Temporary supply chain disruption from an aluminum supplier fire affected PVG OEM automotive and AAG chassis volumes through Q4 2025 and likely into Q1 2026 .

Financial Results

Summary vs prior periods and estimates

MetricQ2 2025Q3 2025Q1 2026 (Consensus)
Revenue ($USD Millions)$374.864 $376.355 $357.660*
GAAP Diluted EPS ($USD)$0.07 $(0.02) $0.24*
Adjusted EPS ($USD)$0.40 $0.23 —
Gross Margin %31.2% 30.4% —
Adjusted EBITDA ($USD Millions)$49.293 $44.419 $37.165*
Adjusted EBITDA Margin %13.1% 11.8% —

Values with * retrieved from S&P Global.

Segment net sales

Segment Net Sales ($USD Millions)Q2 2025Q3 2025Q1 2026 (Consensus)
Powered Vehicles Group (PVG)$123.514 $125.872 —
Aftermarket Applications Group (AAG)$114.144 $117.767 —
Specialty Sports Group (SSG)$137.206 $132.716 —
Total$374.864 $376.355 $357.660*

Values with * retrieved from S&P Global.

KPIs and balance sheet (context)

  • Cash & equivalents: $65.372M at 10/3/2025 .
  • Total debt: $687.7M at 10/3/2025; revolver $151.0M, term loans $512.4M .
  • Cash from operations (9M FY25): $42.766M .
  • Inventory: $412.070M at 10/3/2025 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net SalesQ4 2025$370–$390M $340–$370M Lowered
Adjusted EPSQ4 2025$0.45–$0.65 $0.05–$0.25 Lowered
Net SalesFY 2025$1.45–$1.51B $1.445–$1.475B Narrowed/Lowered
Adjusted EPSFY 2025$1.60–$2.00 $0.92–$1.12 Lowered
Adjusted Tax RateFY 202515–18% 15–18% Maintained
Pre‑mitigated Tariff ExpenseFY 2025~$38M (May) Up to ~$50M Raised
Strategic PlanFY 2026—Begin “phase two” optimization: margins/FCF/deleveraging New disclosure

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2025, Q3 2025)Current Period (Q1 2026)Trend
Supply chain disruption (aluminum supplier fire)Noted disruption impacting PVG/AAG in Q4; resolution expected mid‑Q1 Not yet reported; management expected normalization mid‑Q1 Improving by mid‑Q1
Tariffs/macroFY25 pre‑mitigated tariffs raised to ~$50M; mitigation via insourcing, pricing, relocations Not yet reported; tariff trajectory remains a key watch item Deteriorated vs early FY25; mitigation ongoing
Product innovation (Live Valve aftermarket)Launch in Q3; expands premium aftermarket offering Deployment/early sell‑through into Q1 to watch Positive
PVG performance+15% YoY; premium OEM mix stable; insourcing offsets tariffs Volumes sensitive to supplier recovery in Q1 Near‑term mixed, medium‑term positive
SSG retail inventory managementDealers/OEMs conservative into year‑end; Q3 down 11% YoY Q1 reset post year‑end; pace of reorder in Q1 to watch Stabilizing from low base
AAG momentum+17% YoY; OEM performance truck program scaling in Q4/Q1 Program ramp into Q1 a key driver Positive

Management Commentary

  • “Our third quarter results reflect overall improvement year‑over‑year…driven by organic growth in AAG…[and] PVG…[while] SSG underperformed expectations…retail partners actively managed toward leaner inventories ahead of year‑end.”
  • “We further addressed tariff headwinds, and we made necessary investments in innovation and products…cementing our competitive position.”
  • “For the fourth quarter…net sales…$340–$370M and adjusted EPS…$0.05–$0.25…macro…increasingly challenging…phase two of…optimization in fiscal 2026…driving margin improvement…free cash flow…reduce balance sheet leverage.”
  • “We launched our advanced software‑controlled Live Valve Suspension for the aftermarket…products for truck, SUV, and Jeep customers.”

Q&A Highlights

  • PVG/AAG impact from aluminum supplier fire: “Resolves itself sometime mid‑Q1…significant issue across Q4…and it…impacts the PVG OEM automotive business [and] AAG relative to chassis.”
  • SSG/bike retail behavior: Dealers/distributors/OEMs prioritizing lean year‑end inventories; Q4 a retail story rather than product; sets a “new baseline into 2026” .
  • Tariffs: Pre‑mitigated FY25 impact lifted to ~$50M; mitigation via insourcing, supply chain relocation, pricing; segment impacts revised (PVG ~$25M, Marucci ~$15M, AAG ~$10M) .
  • Powersports/motorcycle: Stabilizing dealer inventories; motorcycle expansion offset powersports softness; technology/content raises price points .

Estimates Context

  • Q1 2026 consensus: Revenue $357.66M*, EPS $0.24*, EBITDA $37.17M*, with 3 revenue and 4 EPS estimates; consensus target price ~$22.86 (7 estimates) [functions.GetEstimates Q1 2026].
  • Street revisions: Roth Capital reduced Q1 2026 EPS estimate to $0.28 (from $0.40) post Q3 reset and supply chain/macro commentary .
  • Implications: Q1 outcomes likely hinge on pace of supplier recovery, SSG reorder cadence post year‑end, and tariff mitigation effectiveness; models should reflect lower Q4 base and gradual normalization into Q1 .

Values with * retrieved from S&P Global.

Key Takeaways for Investors

  • Near‑term setup into Q1 2026 is mixed: PVG/AAG growth vectors intact but temporarily constrained by supplier fire; watch for mid‑Q1 normalization to support volumes .
  • SSG reset should enable cleaner starting point into 2026; monitor early‑season reorder strength and retail inventory posture in Q1 .
  • Tariff path remains a material variable; Fox’s insourcing/relocation/pricing actions are mitigating but not fully offsetting; margin recovery requires continued execution .
  • Innovation pipeline (Live Valve aftermarket, motorcycle expansion, OEM performance truck program) supports medium‑term top‑line and mix improvement; track sell‑through and OEM adoption cadence across Q4/Q1 .
  • Balance sheet focus (FCF to delever, covenant headroom after maturity extension to 2030) is a positive in a tougher macro; watch cash conversion and inventory turns .
  • Trading lens: Into Q1, catalysts include supplier normalization and evidence of tariff mitigation; risks include continued macro softness and SSG retail conservatism; skew likely driven by margin prints vs consensus as cost actions flow through .
  • Recalibrate FY 2026 expectations to reflect “phase two” optimization emphasis on profitability/FCF over growth; management plans detailed FY26 outlook on Q4 call .

Search notes: Q1 2026 8‑K 2.02 press release and call transcript were not found in the document catalog or on the company’s press releases page based on current availability; prior quarters Q2/Q3 2025 were read in full for trend analysis – – –.