Fox Factory Holding 2025 Q3 Earnings Record Net Loss Amid Revenue Growth

Fox Factory Holding (FOXF) reported mixed third-quarter results, with revenue rising 4.8% year-over-year to $376.36 million, outpacing Wall Street’s $382.93 million forecast. However, the company swung to a net loss of $662,000, or $0.02 per share, from a $4.8 million profit in 2024 Q3. Guidance was downgraded due to supply chain disruptions and soft demand in the Specialty Sports Group (SSG).

Revenue

Fox Factory’s revenue growth was driven by the Powered Vehicles Group ($125.87 million) and Aftermarket Applications Group ($117.77 million), while the Specialty Sports Group declined 11.2% to $132.72 million. The Powered Vehicles Group benefited from strategic customer programs and market share gains, whereas the SSG faced inventory reductions by OEMs and distributors.

Earnings/Net Income

The company posted a net loss of $662,000, a 113.8% deterioration from the prior year’s profit, and an EPS of -$0.02, representing a 118.2% drop. The loss reflects elevated costs from R&D and restructuring, as well as weaker performance in the SSG segment.

Post-Earnings Price Action Review

Shares of Fox Factory plummeted 25.96% in the latest full trading week and 31.53% month-to-date, closing at $21.96, a 9-year low. The stock’s decline reflects investor concerns over the company’s revised guidance and macroeconomic headwinds.

CEO Commentary

Mike Dennison, CEO, emphasized progress in operational efficiency and product innovation, including the launch of advanced suspension systems and cost reduction initiatives. He noted, “We delivered net sales growth of 5% and improved adjusted EBITDA by 6%, despite challenges in the SSG segment.”

Guidance

For Q4 2025, Fox Factory expects revenue of $340–$370 million and adjusted EPS of $0.05–$0.25, below consensus estimates. Full-year 2025 revenue guidance is now $1.445–$1.475 billion, with adjusted EPS of $0.92–$1.12.

Additional News

Recent developments include a fire at a major aluminum supplier disrupting Q4 supply chains, a $25 million cost reduction program on track for 2025, and strategic partnerships in power sports and truck manufacturing. The company also extended its credit agreement maturity through 2030 to enhance financial flexibility.

Fox Factory’s Q3 results highlight resilience in core segments like Powered Vehicles and Aftermarket Applications, but the SSG’s underperformance and macroeconomic pressures underscore near-term challenges. The stock’s steep decline reflects skepticism about the company’s ability to navigate supply chain issues and macroeconomic uncertainties.