Fox Factory Holding 2025 Q3 Earnings Net Income Plummets 113.8% to Loss

Fox Factory Holding (FOXF) reported fiscal 2025 Q3 earnings on Nov 8, 2025, missing revenue and earnings expectations. The stock price dropped 1.92% in the latest trading day, with shares down 31.53% month-to-date. The company revised Q4 guidance downward, citing supply chain disruptions and underperformance in the Specialty Sports Group.

The Powered Vehicles Group contributed $125.87 million to revenue, while the Aftermarket Applications Group reported $117.77 million. The Specialty Sports Group generated $132.72 million, though it underperformed due to inventory reductions. Total net sales reached $376.36 million, a 4.8% increase year-over-year but below the $380 million consensus.

Earnings/Net Income

The company swung to a loss of $0.02 per share in Q3 2025, compared to a profit of $0.11 per share in Q3 2024. Net income plummeted to a $662,000 loss, reflecting a 113.8% deterioration from the $4.78 million profit in the prior year. This marked a significant earnings shortfall and operational challenge for the quarter.

Post-Earnings Price Action Review

The strategy of buying Fox Factory Holding (FOXF) when revenues beat expectations and holding for 30 days shows promising potential, though it's not without risks. Despite reporting quarterly earnings of $0.23 per share, which missed the Zacks Consensus Estimate of $0.56 per share by 58.93%, the company has historically met revenue estimates. However, the stock price fell to $21.96, far below the $32.40 average analyst price target. For the upcoming quarter, Fox Factory is expected to post EPS of $0.97, a 26% year-over-year increase, suggesting a potential rebound. Strategic initiatives, including $25 million in annual cost reductions and footprint consolidation, aim to drive long-term margin expansion. Risks persist, including SSG underperformance and supply chain disruptions from an aluminum supplier fire. Historical data indicates Fox Factory has exceeded revenue estimates in three of the last four quarters, offering a cautiously optimistic outlook if strategic plans succeed.

CEO Commentary

Mike Dennison, CEO, emphasized navigating a challenging macroeconomic environment, stating, “Our third quarter results reflect overall improvement year-over-year, despite SSG headwinds. We delivered 5% sales growth and 6% adjusted EBITDA improvement. Strategic investments in innovation and cost reductions remain central to our long-term profitability.” The CEO highlighted progress in AAG and PVG segments, while acknowledging SSG’s struggles with inventory management and consumer demand.

Guidance

For Q4 2025, Fox Factory expects net sales of $340–$370 million and adjusted EPS of $0.05–$0.25. Full-year 2025 guidance was revised to $1.445–$1.475 billion in revenue and $0.92–$1.12 in adjusted EPS. The company anticipates a 2026 focus on margin recovery, operational efficiency, and free cash flow generation, though macroeconomic challenges like elevated interest rates and a soft labor market remain risks.

Additional News

1. Supply Chain Disruptions: A fire at a major aluminum supplier impacted Q4 sales, particularly in the Powered Vehicles Group and Aftermarket Applications Group.

2. Cost Reductions: Fox Factory remains on track to achieve a $25 million annual cost reduction target, supporting long-term margin expansion.

3. Strategic Partnerships: The company announced new bike partnerships and expanded platform adoptions in power sports, enhancing OEM relationships.