Fox Factory Holding Corp. Reports Third Quarter Fiscal 2025 Financial Results
Fox Factory Holding Corp., a global leader in the design, engineering, and manufacturing of performance-defining products and systems, has released its financial results for the third fiscal quarter ended October 3, 2025. The company reported a mixed performance with some segments showing growth while others faced challenges.
Financial Highlights
For the third quarter of fiscal 2025, Fox Factory reported net sales of $376.4 million, marking a 4.8% increase compared to the same period last year. However, the company posted a net loss of $0.6 million, or $0.02 per diluted share, compared to a net income of $4.8 million, or $0.11 per diluted share, in the prior year quarter. Adjusted EBITDA rose by 5.7% year-over-year to $44.4 million, with an adjusted EBITDA margin of 11.8%.
Business and Operational Highlights
The Aftermarket Applications Group (AAG) saw a significant 17.4% increase in net sales to $117.8 million, driven by strong demand for aftermarket products. The Powered Vehicles Group (PVG) also experienced a 15.1% rise in net sales to $125.9 million, attributed to strategic customer program launches and market share gains in motorcycle and powersports applications. However, the Specialty Sports Group (SSG) faced an 11.2% decline in net sales to $132.7 million due to inventory reductions by OEMs, distributors, and dealers.
Strategic Initiatives and Corporate Developments
Fox Factory extended its credit agreement maturity through October 2030, enhancing its financial flexibility. The company also reduced its debt by $17 million and is on track with its $25 million cost reduction program. Additionally, Fox Factory is preparing for phase two of its optimization initiative, focusing on operational excellence, product innovation, and balance sheet strengthening.
Management's Perspective
Mike Dennison, CEO of Fox Factory, commented, "Our third quarter results reflect overall improvement year-over-year, in a challenging environment. We delivered net sales growth of 5% and improved adjusted EBITDA by 6%. Despite challenges in the SSG segment, we strengthened our balance sheet and made necessary investments in innovation and products."
Future Outlook
For the fourth quarter of fiscal 2025, Fox Factory expects net sales to be in the range of $340 million to $370 million and adjusted earnings per diluted share to be between $0.05 and $0.25. For the full fiscal year 2025, the company anticipates net sales between $1.445 billion and $1.475 billion, with adjusted earnings per diluted share ranging from $0.92 to $1.12. The company also provided a cautious outlook for fiscal 2026, citing macroeconomic challenges such as elevated interest rates and a softened labor market.
Original SEC Filing: FOX FACTORY HOLDING CORP [ FOXF ] - 8-K - Nov. 06, 2025