Fox Factory Holding 2025 Q3 Earnings Net Loss Amid Revenue Growth

Fox Factory Holding (FOXF) reported Q3 2025 results marked by a net loss despite a 4.8% revenue increase to $376.36 million. The company swung to a loss of $0.02 per share, missing Wall Street expectations, and revised full-year guidance downward. The stock price declined sharply post-earnings, reflecting investor concerns over macroeconomic headwinds and supply chain disruptions.

Revenue

Driven by strong performance in the Aftermarket Applications Group, which saw a 17.4% increase to $117.77 million, total revenue rose 4.8% to $376.36 million. The Powered Vehicles Group contributed $125.87 million, while the Specialty Sports Group reported $132.72 million. Despite this growth, the SSG segment underperformed due to inventory reductions by OEMs and distributors.

Earnings/Net Income

The earnings report marked a significant decline, with a net loss of $662,000 compared to a $4.78 million profit, reflecting a 113.8% year-over-year deterioration. The company swung to a loss of $0.02 per share from a profit of $0.11 per share, underscoring the challenges posed by elevated costs and macroeconomic pressures.

Post-Earnings Price Action Review

Following the earnings release, Fox Factory Holding’s stock price declined sharply, with a 1.92% drop on the latest trading day. Over the past week, the stock plummeted 25.96%, and the month-to-date loss reached 31.53%, underscoring investor concerns over the company’s financial outlook. The sharp decline aligns with the downward revision of Q4 guidance and the broader market’s cautious sentiment toward the sector.

CEO Commentary

CEO Jim Hackett emphasized navigating macroeconomic headwinds and supply chain challenges, while highlighting strategic investments in product innovation and market expansion. He expressed confidence in the company’s long-term positioning in off-road and performance vehicle sectors, despite near-term volatility.

Guidance

Fox Factory Holding projected 2025 revenue of $1.5–1.6 billion and adjusted EPS of $0.85–$0.95. Q4 guidance was narrowed to $340M–$370M revenue and $0.05–$0.25 adjusted EPS. The CEO reiterated plans to maintain capital expenditures within $45–$50 million to support operational efficiency.

Additional News

1. Aluminum Supplier Fire Impact: A fire at a major aluminum supplier disrupted supply chains, affecting Q4 sales in the Powered Vehicles Group and Aftermarket Applications Group.

2. Cost Reduction Program: The company remains on track to achieve a $25 million cost reduction target, with completed footprint consolidation activities expected to drive long-term margin expansion.

3. Strategic Market Expansion: Fox Factory announced new partnerships in the powersports sector and expanded its product portfolio in the Specialty Sports Group, including new bike platforms and softball categories.

Article Polishing

Fox Factory Holding’s Q3 results highlight a resilient revenue performance amid a challenging macroeconomic environment. While the Aftermarket and Powered Vehicles segments delivered growth, the Specialty Sports Group faced headwinds due to inventory adjustments. The company’s strategic focus on cost optimization and product innovation aims to mitigate short-term pressures and position for long-term profitability. Investors remain cautious as the stock continues to underperform, reflecting broader sector uncertainties.