Fox Factory (FOXF) Q4 2024 earnings summary

Executive summary

• Q4 net sales were $352.8M, up 6.1% year-over-year, with gross margin at 28.9%, a 120 bps increase, and adjusted EPS of $0.31.

• Full-year 2024 net sales were $1.39B, down 4.8% from 2023, with net income dropping to $6.6M from $120.8M.

• $25M cost reduction initiatives are progressing, with $63M in debt paid down in Q4, aided by working capital improvements.

• Focused on operational efficiency, product development, and strategic diversification across segments and geographies.

• Working capital improved by $55M year-over-year, driven by inventory optimization and strategic actions.

Financial highlights

• Q4 adjusted EBITDA was $40.4M (11.5% margin), up from $38.8M last year; full-year adjusted EBITDA was $167M (12.0% margin), down from $261M (17.8%).

• Q4 net loss was $0.1M (zero per diluted share); full-year net income was $6.6M ($0.16/share).

• Q4 adjusted gross margin was 29.2%, up 20 bps year-over-year; full-year adjusted gross margin was 30.8%, down 200 bps.

• Q4 adjusted operating expenses were $76.4M (21.7% of sales); full-year adjusted operating expenses were $310.9M (22.3%).

• Year-end cash was $71.7M; total debt was $705.1M.

Outlook and guidance

• FY25 net sales expected at $1.385B–$1.485B; adjusted EPS $1.60–$2.60; adjusted tax rate 15%–18%.

• Q1 FY25 net sales guidance: $320M–$350M; adjusted EPS $0.12–$0.32.

• Revenue and margin improvement expected in 2H25 as cost reduction benefits materialize.

• Guidance excludes tariff impacts; cautious near-term outlook with continued investment in growth initiatives.