Fox Factory (FOXF) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales rose 7.6% year-over-year to $374.9M, with growth across all segments, driven by bike sales stabilization, aftermarket demand, and motorcycle business expansion.

• Net income for Q2 2025 was $2.7M, down from $5.4M last year, primarily due to higher operating expenses and a spike in the effective tax rate.

• Adjusted EBITDA for Q2 2025 was $49.3M, up 11.8% year-over-year, with margin reaching 13.1%, the highest in nearly two years, reflecting cost reduction and operational improvements.

• A $262.1M non-cash goodwill impairment in H1 2025 led to a net loss of $257.0M for the six months.

• Raised full-year sales guidance to $1.45–$1.51B, but narrowed adjusted EPS guidance to $1.60–$2.00 due to higher-than-expected tariff headwinds.

Financial highlights

• Q2 2025 gross margin was 31.2%, down from 31.8% last year; adjusted gross margin was 31.3%.

• Q2 2025 net income was $2.7M ($0.07 per diluted share), down from $5.4M ($0.13) last year; adjusted net income was $16.6M ($0.40 per share), up from $15.9M ($0.38).

• Adjusted EBITDA grew 11.8% to $49.3M; margin up 40 bps year-over-year and 190 bps sequentially.

• Operating expenses were $98.5M (26.3% of sales), up $6.1M due to restructuring, R&D, and marketing.

• Net leverage improved to 3.8x from 4.1x in Q1 2025.

Outlook and guidance

• Q3 2025 net sales expected at $370–$390M; adjusted EPS at $0.45–$0.65.

• Full-year 2025 net sales guidance raised to $1.45–$1.51B; adjusted EPS narrowed to $1.60–$2.00; adjusted tax rate 15%-18%.

• Tariff impact for 2025 now expected at $50M pre-mitigation, with about 50% offset expected.

• Free cash flow for the year expected at ~$80M.

• Management expects liquidity to be sufficient for the next 12 months and beyond.