Fox Factory (FOXF) Q4 2025 earnings summary

Executive summary

• Full-year sales reached $1.47 billion, up 5.3% year-over-year; Q4 sales were $361.1 million, up 2.3%.

• Reported a significant net loss of $287.0 million in Q4 and $544.6 million for the year, driven by goodwill and asset impairments.

• Focus shifted from revenue growth to profitability, with urgent actions to rebuild margins in 2026.

• Comprehensive cost reduction and business rationalization plans are underway, targeting $50 million in incremental savings for 2026; Phase 2 profit optimization follows $25 million in 2025.

• Board established a transformation committee and is reviewing strategic alternatives for non-core assets, including Marucci and Phoenix AAG operations.

Financial highlights

• Q4 gross margin was 28.3%, down from 28.9% year-over-year; full-year gross margin was 30.2%, down 20 basis points.

• Adjusted net income for Q4 was $8.3 million ($0.20 per diluted share), down from $12.8 million ($0.31) last year; full-year adjusted EPS was $1.06.

• Adjusted EBITDA for Q4 was $35 million (9.7% margin), down from $40.4 million (11.5%) year-over-year; full-year adjusted EBITDA was $168.4 million.

• Non-cash goodwill impairment charge of $295.2 million recorded in Q4; total goodwill impairment for the year was $557.3 million.

• Debt reduced by $33 million in 2025, ending at $673.5 million; cash and equivalents at year-end were $58.0 million.

Outlook and guidance

• 2026 net sales guidance: $1.328–$1.416 billion, a 6.5% decline at midpoint, mainly due to divestitures and product rationalization.

• Adjusted EBITDA guidance: $174–$203 million (13.7% margin at midpoint), a 200 basis point improvement over 2025.

• Q1 2026 net sales expected at $343–$369 million; adjusted EBITDA at $27–$34 million.

• CapEx to be reduced to ~2% of revenue in 2026.

• Tax rate expected at 15–18%.