Fox Factory (NASDAQ:FOXF) Announces Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• Fox Factory beat first-quarter earnings expectations, reporting $0.18 EPS versus the $0.09 consensus and revenue of $368.7 million above estimates. Revenue also rose 3.8% year over year.
• Management reaffirmed its full-year 2026 outlook and said a profit optimization plan could deliver about $50 million in cost savings, with margin improvement expected later in the year. The company also maintained guidance for sales of roughly $1.328 billion to $1.416 billion and adjusted EBITDA of $174 million to $203 million.
• Despite the beat, near-term pressures remain, including an aluminum supply disruption hurting upfit volumes, weaker bike sales, and soft demand in Marucci. Shares fell after the report, and Zacks Research downgraded the stock to “strong sell.”

Fox Factory (NASDAQ:FOXF - Get Free Report) announced its earnings results on Thursday. The company reported $0.18 EPS for the quarter, beating analysts' consensus estimates of $0.09 by $0.09, Zacks reports. Fox Factory had a positive return on equity of 4.90% and a negative net margin of 20.25%.The company had revenue of $368.66 million during the quarter, compared to analysts' expectations of $351.76 million. During the same period last year, the business posted $0.23 EPS. Fox Factory's revenue for the quarter was up 3.8% on a year-over-year basis.

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

• Q1 results beat expectations with $368.7 million in revenue (high end of guidance) and $35.7 million adjusted EBITDA, and management reaffirmed its full‑year 2026 outlook.
• Management is executing a profit optimization plan targeting approximately $50 million of 2026 cost savings (≈$10M carryover + ~$40M phase 2), with early benefits realized and margin expansion expected in the second half.
• The company closed the Phoenix divestiture (UTV/Update/Geiser/Shock Therapy) as planned, directing proceeds to debt reduction and amending credit facilities to expand covenant headroom and financial flexibility.
• Near‑term operational headwinds — AAG margins are pressured by an industry‑wide aluminum supply disruption that reduced F‑150 upfit volumes (some Q1/Q2 volume not recoverable), while SSG (bike) was down ~8.7% and Marucci faces soft demand, weighing on Q2 performance.

Fox Factory Stock Down 4.2%

Shares of NASDAQ FOXF traded down $0.77 during midday trading on Friday, hitting $17.80. 1,276,756 shares of the company's stock were exchanged, compared to its average volume of 449,614. The company has a debt-to-equity ratio of 0.96, a current ratio of 2.86 and a quick ratio of 1.37. Fox Factory has a twelve month low of $13.08 and a twelve month high of $31.18. The company has a market cap of $746.23 million, a PE ratio of -2.48 and a beta of 1.37. The firm's fifty day simple moving average is $17.03 and its 200-day simple moving average is $17.85.

Institutional Investors Weigh In On Fox Factory

Hedge funds and other institutional investors have recently made changes to their positions in the business. Diversify Wealth Management LLC acquired a new stake in shares of Fox Factory during the 2nd quarter worth about $217,000. Russell Investments Group Ltd. boosted its stake in Fox Factory by 12.3% in the second quarter. Russell Investments Group Ltd. now owns 7,818 shares of the company's stock valued at $203,000 after acquiring an additional 858 shares in the last quarter. Tower Research Capital LLC TRC boosted its stake in Fox Factory by 526.0% in the second quarter. Tower Research Capital LLC TRC now owns 7,925 shares of the company's stock valued at $206,000 after acquiring an additional 6,659 shares in the last quarter. Entropy Technologies LP acquired a new position in Fox Factory in the third quarter valued at $208,000. Finally, Caxton Associates LLP acquired a new position in Fox Factory in the second quarter valued at $227,000.

Analysts Set New Price Targets

A number of equities analysts recently commented on FOXF shares. Zacks Research cut Fox Factory from a "hold" rating to a "strong sell" rating in a report on Tuesday. Roth Mkm reiterated a "neutral" rating and issued a $20.00 price objective on shares of Fox Factory in a research note on Friday. Stifel Nicolaus set a $24.00 price objective on Fox Factory in a research note on Thursday, April 16th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of Fox Factory in a research note on Thursday, January 22nd. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Fox Factory has a consensus rating of "Hold" and an average price target of $27.50.

Fox Factory News Roundup

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

• Positive Sentiment: Fox Factory reported first-quarter EPS of $0.18, well ahead of the $0.09 consensus, and revenue of $368.7 million, above expectations for about $351.8 million. Fox Factory earnings report and conference call
• Positive Sentiment: The company reaffirmed full-year 2026 sales guidance of roughly $1.328 billion to $1.416 billion and adjusted EBITDA guidance of $174 million to $203 million, supported by about $50 million in cost savings. Fox Factory outlook article
• Neutral Sentiment: Management also guided second-quarter revenue to $343 million to $365 million, a range that is only slightly above Wall Street expectations, which may limit upside from the quarter. Fox Factory first-quarter financial results press release
• Negative Sentiment: Zacks Research downgraded Fox Factory Holding Corp. NASDAQ: FOXF from “hold” to “strong sell,” adding a bearish sentiment factor for the stock. Fox Factory downgrade report
• Negative Sentiment: Even with the earnings beat, the company’s revenue growth remains modest year over year, and profitability metrics are still weak, which may temper investor enthusiasm. Fox Factory earnings call transcript

About Fox Factory

Fox Factory Holding Corp., headquartered in Duluth, Minnesota, designs, engineers and manufactures high-performance suspension systems, shock absorbers and related components for powersports, light-vehicle and mountain-bike applications. The company's FOX brand offers a comprehensive portfolio of forks, shocks, coilovers and internal bypass dampers aimed at OEM and aftermarket customers seeking enhanced ride quality, control and durability across off-road vehicles, motorcycles and bicycles.

Founded in 1974 by Bob Fox in California, Fox Factory has expanded its technology base and market reach through strategic acquisitions such as Marzocchi Suspension, DVO Suspension and Walker Evans Racing.

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