Fox Factory (FOXF) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales rose 3.9% year-over-year to $368.7 million, reaching the high end of guidance, driven by powersports, automotive aftermarket, and upfitting demand.

• Adjusted EBITDA was $35.7 million, exceeding guidance, while net loss narrowed to $15.0 million from $259.7 million last year, reflecting the absence of goodwill impairment.

• Early results from the February transformation plan and multi-phase profit optimization strategy are materializing, with phase one savings carrying over and phase two actions underway, targeting $50 million in cost savings for 2026.

• The Phoenix, Arizona operations divestiture closed as planned, with proceeds allocated to debt reduction and a $10.0 million loss recorded on the sale.

• The operating environment remains consistent with expectations; no end market recovery or tariff relief is assumed in 2026.

Financial highlights

• Consolidated net sales increased 3.9% year-over-year to $368.7 million in Q1 2026.

• Gross margin declined to 28.9% from 30.9% year-over-year, mainly due to tariffs and product mix shifts.

• Adjusted EBITDA was $35.7 million, down from $39.6 million year-over-year but above guidance; adjusted EBITDA margin was 9.7%.

• Adjusted net income was $7.4 million ($0.18 per diluted share), down from $9.8 million ($0.23 per share) in Q1 2025.

• Cash and cash equivalents stood at $53.9 million at quarter-end; total debt was $688.2 million.

Outlook and guidance

• Full-year 2026 net sales expected between $1.328–$1.416 billion; adjusted EBITDA between $174–$203 million, reaffirmed.

• Guidance implies approximately 200-basis points of adjusted EBITDA margin improvement over 2025.

• Q2 2026 net sales expected between $343–$365 million; adjusted EBITDA between $32–$40 million.

• Approximately $50 million in cost savings targeted for fiscal 2026, with Phase 2 actions on schedule.

• No potential tariff recoveries included in outlook due to uncertainty; margin expansion expected in H2 as cost savings and tariff anniversaries take effect.