Fox Factory Holding Corp. Reports Second Quarter Fiscal 2025 Financial Results
Fox Factory Holding Corp. (NASDAQ: FOXF) reported Q2 2025 financial results with net sales of $374.9M, up 7.6% year-over-year. The company achieved growth across all segments, with Specialty Sports Group up 11.0%, Aftermarket Applications Group up 6.5%, and Powered Vehicles Group up 4.9%.
Net income was $2.7M ($0.07 per diluted share), compared to $5.4M ($0.13 per diluted share) in Q2 2024. Adjusted EBITDA increased to $49.3M with a margin of 13.1%. The company updated its FY2025 guidance, expecting net sales between $1.45B to $1.51B and adjusted EPS of $1.60 to $2.00.
FOX faces challenges from increased tariffs, now expected to reach $50M in 2025, up from previous estimates of $38M. The company is implementing cost reduction initiatives and operational improvements to mitigate these impacts.
Fox Factory Holding Corp. (NASDAQ: FOXF) ha riportato i risultati finanziari del secondo trimestre 2025 con vendite nette di 374,9 milioni di dollari, in crescita del 7,6% rispetto all'anno precedente. L'azienda ha registrato una crescita in tutti i segmenti, con il Specialty Sports Group in aumento dell'11,0%, il Aftermarket Applications Group in crescita del 6,5% e il Powered Vehicles Group in crescita del 4,9%.
L'utile netto è stato di 2,7 milioni di dollari (0,07 dollari per azione diluita), rispetto ai 5,4 milioni di dollari (0,13 dollari per azione diluita) nel secondo trimestre 2024. L'EBITDA rettificato è salito a 49,3 milioni di dollari con un margine del 13,1%. L'azienda ha aggiornato le previsioni per l'intero anno fiscale 2025, prevedendo vendite nette tra 1,45 e 1,51 miliardi di dollari e un EPS rettificato compreso tra 1,60 e 2,00 dollari.
FOX deve affrontare sfide dovute all'aumento dei dazi, che ora si prevede raggiungano 50 milioni di dollari nel 2025, rispetto alle stime precedenti di 38 milioni. L'azienda sta implementando iniziative di riduzione dei costi e miglioramenti operativi per attenuare questi impatti.
Fox Factory Holding Corp. (NASDAQ: FOXF) reportó los resultados financieros del segundo trimestre de 2025 con ventas netas de 374,9 millones de dólares, un aumento del 7,6% interanual. La compañía logró crecimiento en todos los segmentos, con el Specialty Sports Group creciendo un 11,0%, el Aftermarket Applications Group un 6,5% y el Powered Vehicles Group un 4,9%.
El ingreso neto fue de 2,7 millones de dólares (0,07 dólares por acción diluida), en comparación con 5,4 millones de dólares (0,13 dólares por acción diluida) en el segundo trimestre de 2024. El EBITDA ajustado aumentó a 49,3 millones de dólares con un margen del 13,1%. La compañía actualizó sus previsiones para el año fiscal 2025, esperando ventas netas entre 1,45 y 1,51 mil millones de dólares y un EPS ajustado de 1,60 a 2,00 dólares.
FOX enfrenta desafíos por el aumento de aranceles, que ahora se espera alcancen los 50 millones de dólares en 2025, frente a las estimaciones previas de 38 millones. La empresa está implementando iniciativas de reducción de costos y mejoras operativas para mitigar estos impactos.
Fox Factory Holding Corp. (NASDAQ: FOXF)는 2025년 2분기 재무 실적을 발표하며 순매출 3억 7,490만 달러로 전년 대비 7.6% 증가했습니다. 회사는 모든 부문에서 성장을 이루었으며, Specialty Sports Group은 11.0% 증가, Aftermarket Applications Group은 6.5% 증가, Powered Vehicles Group은 4.9% 증가했습니다.
순이익은 270만 달러(희석 주당 0.07달러)로, 2024년 2분기의 540만 달러(희석 주당 0.13달러)와 비교됩니다. 조정 EBITDA는 4,930만 달러로 증가했으며 마진은 13.1%입니다. 회사는 2025 회계연도 가이던스를 업데이트하여 순매출을 14억 5천만 달러에서 15억 1천만 달러 사이, 조정 주당순이익은 1.60달러에서 2.00달러로 예상하고 있습니다.
FOX는 증가한 관세로 인한 도전 과제에 직면해 있으며, 2025년에는 이전 예상치 3,800만 달러에서 증가한 5,000만 달러에 이를 것으로 예상됩니다. 회사는 이러한 영향을 완화하기 위해 비용 절감 및 운영 개선 조치를 시행하고 있습니다.
Fox Factory Holding Corp. (NASDAQ: FOXF) a annoncé ses résultats financiers du deuxième trimestre 2025 avec des ventes nettes de 374,9 millions de dollars, en hausse de 7,6 % par rapport à l'année précédente. L'entreprise a enregistré une croissance dans tous les segments, avec le Specialty Sports Group en hausse de 11,0 %, le Aftermarket Applications Group en hausse de 6,5 % et le Powered Vehicles Group en hausse de 4,9 %.
Le bénéfice net s'est élevé à 2,7 millions de dollars (0,07 dollar par action diluée), contre 5,4 millions de dollars (0,13 dollar par action diluée) au deuxième trimestre 2024. L'EBITDA ajusté a augmenté pour atteindre 49,3 millions de dollars avec une marge de 13,1 %. L'entreprise a mis à jour ses prévisions pour l'exercice 2025, s'attendant à des ventes nettes comprises entre 1,45 et 1,51 milliard de dollars et un BPA ajusté de 1,60 à 2,00 dollars.
FOX fait face à des défis liés à l'augmentation des tarifs douaniers, désormais estimés à 50 millions de dollars en 2025, contre des estimations précédentes de 38 millions. L'entreprise met en œuvre des initiatives de réduction des coûts et des améliorations opérationnelles pour atténuer ces impacts.
Fox Factory Holding Corp. (NASDAQ: FOXF) meldete die Finanzergebnisse für das zweite Quartal 2025 mit Nettoverkäufen von 374,9 Mio. USD, was einem Anstieg von 7,6 % im Jahresvergleich entspricht. Das Unternehmen erzielte Wachstum in allen Segmenten, wobei die Specialty Sports Group um 11,0 %, die Aftermarket Applications Group um 6,5 % und die Powered Vehicles Group um 4,9 % zunahmen.
Der Nettogewinn betrug 2,7 Mio. USD (0,07 USD je verwässerter Aktie) im Vergleich zu 5,4 Mio. USD (0,13 USD je verwässerter Aktie) im zweiten Quartal 2024. Das bereinigte EBITDA stieg auf 49,3 Mio. USD mit einer Marge von 13,1 %. Das Unternehmen aktualisierte seine Prognose für das Geschäftsjahr 2025 und erwartet Nettoverkäufe zwischen 1,45 Mrd. und 1,51 Mrd. USD sowie ein bereinigtes Ergebnis je Aktie von 1,60 bis 2,00 USD.
FOX steht vor Herausforderungen durch gestiegene Zölle, die nun für 2025 auf 50 Mio. USD geschätzt werden, gegenüber früheren Schätzungen von 38 Mio. USD. Das Unternehmen setzt Kostensenkungsmaßnahmen und operative Verbesserungen um, um diese Auswirkungen abzumildern.
- Net sales grew 7.6% year-over-year to $374.9M with growth across all segments
- Adjusted EBITDA increased to $49.3M, up $5.2M year-over-year with margin improvement to 13.1%
- Net leverage improved to 3.8x from 4.1x in Q1 2025
- Cost reduction and operational improvement initiatives showing positive results
- Strong cash position with $81.5M in cash and cash equivalents
- Net income declined to $2.7M from $5.4M year-over-year
- Earnings per share decreased to $0.07 from $0.13 in prior year period
- Tariff expenses expected to increase to $50M, up from previous $38M estimate
- Gross margin declined to 31.2% from 31.8% year-over-year
- High effective tax rate of 50.9% impacting earnings
Insights
Fox Factory posted revenue growth across segments, but profits declined due to tariff impacts and higher expenses, with narrowed full-year guidance.
Fox Factory's Q2 results reveal a company navigating challenging headwinds with mixed financial performance. The company achieved $374.9M in revenue, growing
However, beneath the revenue growth lies concerning pressure on profitability. Net income dropped significantly to
The company's debt situation warrants attention with a net leverage ratio of 3.8x, though this improved from 4.1x in Q1. With
Most concerning is the escalating tariff impact, which has increased from approximately
Looking forward, Fox narrowed its full-year revenue guidance to
The substantial
DULUTH, Ga., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Fox Factory Holding Corp. (NASDAQ: FOXF) (“FOX” or the “Company”), a premium brand and a global leader in the design, engineering and manufacturing of performance-defining products and systems for customers worldwide, today reported financial results for the second fiscal quarter ended July 4, 2025.
Second Quarter Fiscal 2025 Highlights
- Net sales across all segments grew year-over-year and sequentially
- Year-over-year net sales up
$26.4M or7.6% to$374.9M , compared to the prior year period - Sequentially, net sales up
$19.9M or5.6% , compared to Q1 2025
- Year-over-year net sales up
- Net income of
$2.7M , compared to$5.4M in the prior year period - Consolidated adjusted EBITDA of
$49.3M was up$5.2M year-over-year and up$9.7M sequentially compared to Q1 2025- Year-over-year consolidated adjusted EBITDA margin increased 40 basis points to
13.1% , as compared to the prior year period - Sequentially, consolidated adjusted EBITDA margin increased 190 basis points as compared to Q1 2025
- Year-over-year consolidated adjusted EBITDA margin increased 40 basis points to
- Earnings per diluted share was
$0.07 , as compared to$0.13 in the prior year period - Adjusted earnings per diluted share was
$0.40 impacted by an effective tax rate of50.9% , as compared to$0.38 in the prior year period - Cost reduction initiatives progressing in line with expectations and helping mitigate tariff impacts
- Net leverage improved to 3.8x as compared to 4.1x in Q1 2025
Management Commentary
“We delivered significant progress in the second quarter with
“We’ve built a strong foundation for enhanced profitability as we navigate an evolving tariff landscape. Our proactive cost reduction and working capital improvement initiatives — including footprint optimization across three continents, production shifts from higher-cost regions, strategic sourcing, and customer pricing discussions — are helping us manage through this period. We recognize there’s more work ahead, and we remain focused on delivering performance-defining innovations and executing our product roadmap — a model that has served FOX well for decades and resulted in leading market share positions across our businesses. As the consumer discretionary environment stabilizes, we expect this combination of operational excellence and innovation-led growth to restore industry-leading profitability.”
Second Quarter 2025 Results
Net sales for the second quarter of fiscal 2025 were
Gross margin was
Total operating expenses were
Tax expense was
Net income attributable to FOX stockholders in the second quarter of fiscal 2025 was
Adjusted EBITDA in the second quarter of fiscal 2025 was
First Six Months Fiscal 2025 Results
Net sales for the six months ended July 4, 2025, were
Gross margin was
Total operating expenses were
Net loss attributable to FOX stockholders in the six months ended July 4, 2025 was
Adjusted EBITDA increased to
Reconciliations to non-GAAP measures are provided at the end of this press release.
Balance Sheet Summary
As of July 4, 2025, the Company had cash and cash equivalents of
Third Quarter and Fiscal 2025 Guidance
For the third quarter of fiscal 2025, the Company expects net sales in the range of
For the fiscal year 2025, in consideration of the Company’s year-to-date performance and current visibility to tariff impacts, it now expects net sales in the range of
While the impact of the tariff policies on demand remains uncertain, new and expanded tariffs are expected to continue to pose significant challenges for the industries that the Company serves. For 2025, the Company’s pre-mitigated tariff expense has increased from prior expectations of approximately
Adjusted earnings per diluted share excludes the following items net of applicable tax: amortization of purchased intangibles, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses and related losses, non-cash goodwill impairment, and strategic transformation costs. A quantitative reconciliation of adjusted earnings per diluted share for the third quarter and full fiscal year 2025 is not available without unreasonable efforts because management cannot predict, with sufficient certainty, all of the elements necessary to provide such a reconciliation. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Conference Call & Webcast
The Company will hold an investor conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number for North America listeners is (800) 445-7795, and international listeners may dial (785) 424-1699; the conference ID is FOXFQ225 or 36937225. Live audio of the conference call will be simultaneously webcast in the Investor Relations section of the Company’s website at http://www.investor.ridefox.com. The webcast of the teleconference will be archived and available on the Company’s website.
Available Information
Fox Factory Holding Corp. announces material information to the public about the Company through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, and the investor relations section of its website (https://investor.ridefox.com) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.
About Fox Factory Holding Corp. (NASDAQ: FOXF)
Fox Factory Holding Corp. is a global leader in the design, engineering and manufacturing of premium products that deliver championship-level performance for specialty sports and on- and off-road vehicles. Its portfolio of brands, like FOX, Marucci, Method Race Wheels and more, are fueled by unparalleled innovation that continuously earns the trust of professional athletes and passionate enthusiasts all around the world. The Company is a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle original equipment manufacturers and offers premium baseball and softball gear and equipment. The Company acquires complementary businesses to integrate engineering and manufacturing expertise to reach beyond its core shock and suspension segment, diversifying its product offerings and increasing its market potential. It also provides products in the aftermarket through its global network of retailers and distributors and through direct-to-consumer channels.
FOX is a registered trademark of Fox Factory, Inc. NASDAQ Global Select Market is a registered trademark of The NASDAQ OMX Group, Inc. All rights reserved.
Non-GAAP Financial Measures
In addition to reporting financial measures in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”), FOX includes in this press release certain non-GAAP financial measures consisting of “adjusted gross profit,” “adjusted gross margin,” “adjusted operating expense,” “adjusted operating expense margin”, “adjusted net income,” “adjusted earnings per share,” “adjusted EBITDA,” “adjusted EBITDA margin,” and “free cash flow,” all of which are non-GAAP financial measures. FOX defines adjusted gross profit as gross profit adjusted for the amortization of acquired inventory valuation markups and cost of goods sold associated with organizational restructuring. Adjusted gross margin is defined as adjusted gross profit divided by net sales. FOX defines adjusted operating expense as operating expense adjusted for amortization of purchased intangibles, goodwill impairment, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, and certain strategic transformation costs. FOX defines adjusted operating expense margin as adjusted operating expense divided by net sales. FOX defines adjusted net income as net income (loss) attributable to FOX stockholders adjusted for amortization of purchased intangibles, goodwill impairment, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, and strategic transformation costs, all net of applicable tax. Adjusted earnings per share is defined as adjusted net income divided by the weighted average number of basic or diluted shares of common stock outstanding during the period. FOX defines adjusted EBITDA as net income (loss) adjusted for interest expense, net other expense, income taxes or tax benefits, amortization of purchased intangibles, goodwill impairment, depreciation, stock-based compensation, litigation and settlement related expenses, organizational restructuring expenses and related losses, acquisition and integration-related expenses and strategic transformation costs that are more fully described in the tables included at the end of this press release. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales. Free cash flow is defined as net cash (used in) provided by operating activities less purchases of property and equipment. These adjustments are more fully described in the tables included at the end of this press release.
FOX includes these non-GAAP financial measures to provide investors with additional insight on the Company’s operating performance and trends, as well as to supplement their understanding of the results of the Company’s core operations. In particular, the exclusion of certain items in calculating the non-GAAP financial measures consisting of adjusted gross profit, adjusted operating expense, adjusted net income and adjusted EBITDA (and accordingly, adjusted gross margin, adjusted operating expense margin, adjusted earnings per diluted share and adjusted EBITDA margin) can provide a useful measure for period-to-period comparisons of the Company’s core business. These non-GAAP financial measures have limitations as analytical tools, including the fact that such non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies because other companies may calculate adjusted gross profit, adjusted gross margin, adjusted operating expense, adjusted operating expense margin, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin differently than FOX does. For more information regarding these non-GAAP financial measures, see the tables included at the end of this press release.
| FOX FACTORY HOLDING CORP. Condensed Consolidated Balance Sheets (in thousands, except per share data) (unaudited) | |||||||
| As of | As of | ||||||
| July 4, 2025 | January 3, 2025 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 81,451 | $ | 71,674 | |||
| Accounts receivable (net of allowances of | 185,359 | 165,827 | |||||
| Inventory | 412,762 | 404,736 | |||||
| Prepaids and other current assets | 66,983 | 85,443 | |||||
| Total current assets | 746,555 | 727,680 | |||||
| Property, plant and equipment, net | 247,471 | 246,393 | |||||
| Lease right-of-use assets | 98,721 | 104,019 | |||||
| Deferred tax assets, net | 48,649 | 44,364 | |||||
| Goodwill | 377,366 | 639,505 | |||||
| Trademarks and brands, net | 256,041 | 264,126 | |||||
| Customer and distributor relationships, net | 150,540 | 161,585 | |||||
| Core technologies, net | 21,655 | 23,154 | |||||
| Other assets | 18,004 | 21,484 | |||||
| Total assets | $ | 1,965,002 | $ | 2,232,310 | |||
| Liabilities and stockholders’ equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 131,129 | $ | 144,067 | |||
| Accrued expenses | 90,596 | 91,427 | |||||
| Current portion of long-term debt | 24,286 | 24,286 | |||||
| Total current liabilities | 246,011 | 259,780 | |||||
| Revolver | 157,000 | 153,000 | |||||
| Term Loans, less current portion | 517,494 | 527,775 | |||||
| Other liabilities | 85,895 | 90,611 | |||||
| Total liabilities | 1,006,400 | 1,031,166 | |||||
| Non-controlling interest | (117 | ) | (38 | ) | |||
| Stockholders’ equity | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 42 | 42 | |||||
| Additional paid-in capital | 345,932 | 339,266 | |||||
| Treasury stock, at cost; 890 common shares as of July 4, 2025 and January 3, 2025 | (13,754 | ) | (13,754 | ) | |||
| Accumulated other comprehensive income | 8,045 | 224 | |||||
| Retained earnings | 618,454 | 875,404 | |||||
| Total stockholders’ equity | 958,719 | 1,201,182 | |||||
| Total liabilities and stockholders’ equity | $ | 1,965,002 | $ | 2,232,310 | |||
| FOX FACTORY HOLDING CORP. Condensed Consolidated Statements of Income (Loss) (in thousands, except per share data) (unaudited) | |||||||||||||||
| For the three months ended | For the six months ended | ||||||||||||||
| July 4, 2025 | June 28, 2024 | July 4, 2025 | June 28, 2024 | ||||||||||||
| Net sales | $ | 374,864 | $ | 348,491 | $ | 729,894 | $ | 681,963 | |||||||
| Cost of sales | 257,873 | 237,528 | 503,224 | 467,842 | |||||||||||
| Gross profit | 116,991 | 110,963 | 226,670 | 214,121 | |||||||||||
| Operating expenses: | |||||||||||||||
| Goodwill impairment | — | — | 262,129 | — | |||||||||||
| General and administrative | 39,044 | 36,962 | 76,375 | 74,383 | |||||||||||
| Sales and marketing | 31,216 | 29,539 | 64,063 | 60,725 | |||||||||||
| Research and development | 17,847 | 14,789 | 34,886 | 29,228 | |||||||||||
| Amortization of purchased intangibles | 10,356 | 11,083 | 21,276 | 22,320 | |||||||||||
| Total operating expenses | 98,463 | 92,373 | 458,729 | 186,656 | |||||||||||
| Income (loss) from operations | 18,528 | 18,590 | (232,059 | ) | 27,465 | ||||||||||
| Interest expense | 14,388 | 13,865 | 27,322 | 27,194 | |||||||||||
| Other income, net | (1,365 | ) | (311 | ) | (1,515 | ) | (2 | ) | |||||||
| Income (loss) before income taxes | 5,505 | 5,036 | (257,866 | ) | 273 | ||||||||||
| Provision (benefit) from income taxes | 2,800 | (371 | ) | (837 | ) | (1,638 | ) | ||||||||
| Net income (loss) | $ | 2,705 | $ | 5,407 | $ | (257,029 | ) | $ | 1,911 | ||||||
| Less: net loss attributable to non-controlling interest | (39 | ) | — | (79 | ) | — | |||||||||
| Net income (loss) attributable to FOX stockholders | $ | 2,744 | $ | 5,407 | $ | (256,950 | ) | $ | 1,911 | ||||||
| Earnings (net loss) per share: | |||||||||||||||
| Basic | $ | 0.07 | $ | 0.13 | $ | (6.15 | ) | $ | 0.05 | ||||||
| Diluted | $ | 0.07 | $ | 0.13 | $ | (6.15 | ) | $ | 0.05 | ||||||
| Weighted-average shares used to compute earnings per share: | |||||||||||||||
| Basic | 41,788 | 41,673 | 41,749 | 41,662 | |||||||||||
| Diluted | 41,866 | 41,705 | 41,749 | 41,717 | |||||||||||
| FOX FACTORY HOLDING CORP. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) | |||||||
| For the six months ended | |||||||
| July 4, 2025 | June 28, 2024 | ||||||
| OPERATING ACTIVITIES: | |||||||
| Net (loss) income | $ | (257,029 | ) | $ | 1,911 | ||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||
| Goodwill impairment | 262,129 | — | |||||
| Depreciation and amortization | 43,707 | 40,854 | |||||
| Provision for inventory reserve | (592 | ) | 572 | ||||
| Stock-based compensation | 7,917 | 6,109 | |||||
| Amortization of acquired inventory step-up | 342 | 4,485 | |||||
| Amortization of loan fees | 2,704 | 1,540 | |||||
| Amortization of deferred gains on prior swap settlements | (783 | ) | (2,126 | ) | |||
| Proceeds from interest rate swap settlements | 2,224 | 1,434 | |||||
| Asset impairment | 789 | — | |||||
| Loss on disposal of property and equipment | 965 | (27 | ) | ||||
| Deferred taxes | (5,082 | ) | (184 | ) | |||
| Changes in operating assets and liabilities, net of effects of acquisitions: | |||||||
| Accounts receivable | (15,396 | ) | 12,003 | ||||
| Inventory | 1,775 | (7,809 | ) | ||||
| Income taxes | (3,996 | ) | (23,172 | ) | |||
| Prepaids and other assets | 17,572 | (37,107 | ) | ||||
| Accounts payable | (19,412 | ) | 34,633 | ||||
| Accrued expenses and other liabilities | (366 | ) | 2,921 | ||||
| Net cash provided by operating activities | 37,468 | 36,037 | |||||
| INVESTING ACTIVITIES: | |||||||
| Purchases of property and equipment | (19,412 | ) | (21,188 | ) | |||
| Acquisitions of businesses, net of cash acquired | — | (5,041 | ) | ||||
| Acquisition of other assets, net of cash acquired | — | (350 | ) | ||||
| Net cash used in investing activities | (19,412 | ) | (26,579 | ) | |||
| FINANCING ACTIVITIES: | |||||||
| Proceeds from revolver | 57,000 | 119,000 | |||||
| Payments on revolver | (53,000 | ) | (295,000 | ) | |||
| Proceeds from issuance of debt | — | 200,000 | |||||
| Repayment of term debt | (12,142 | ) | (7,143 | ) | |||
| Purchase and retirement of common stock | — | (25,000 | ) | ||||
| Repurchases from stock compensation program, net | (1,251 | ) | (2,545 | ) | |||
| Net cash used in financing activities | (9,393 | ) | (10,688 | ) | |||
| EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 1,114 | (166 | ) | ||||
| CHANGE IN CASH AND CASH EQUIVALENTS | 9,777 | (1,396 | ) | ||||
| CASH AND CASH EQUIVALENTS—Beginning of period | 71,674 | 83,642 | |||||
| CASH AND CASH EQUIVALENTS—End of period | $ | 81,451 | $ | 82,246 | |||
FOX FACTORY HOLDING CORP.
NET INCOME (LOSS) TO ADJUSTED NET INCOME RECONCILIATION
AND CALCULATION OF ADJUSTED EARNINGS PER SHARE
(in thousands, except per share data)
(unaudited)
The following tables provide a reconciliation of net income (loss) attributable to FOX stockholders, the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted net income (a non-GAAP measure), and the calculation of adjusted earnings per share (a non-GAAP measure) for the three and six months ended July 4, 2025 and June 28, 2024. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.
| For the three months ended | For the six months ended | ||||||||||||||
| July 4, 2025 | June 28, 2024 | July 4, 2025 | June 28, 2024 | ||||||||||||
| Net income (loss) attributable to FOX stockholders | $ | 2,744 | $ | 5,407 | $ | (256,950 | ) | $ | 1,911 | ||||||
| Goodwill impairment | — | — | 262,129 | — | |||||||||||
| Amortization of purchased intangibles | 10,356 | 11,083 | 21,276 | 22,320 | |||||||||||
| Litigation and settlement-related expenses | 474 | 1,231 | 1,191 | 2,760 | |||||||||||
| Other acquisition and integration-related expenses(1) | 723 | 470 | 1,340 | 5,633 | |||||||||||
| Organizational restructuring expenses(2) | 3,557 | 413 | 5,180 | 520 | |||||||||||
| Organizational restructuring related losses | 392 | — | 1,091 | — | |||||||||||
| Strategic transformation costs(3) | — | 822 | 20 | 1,254 | |||||||||||
| Tax impacts of reconciling items above(4) | (1,634 | ) | (3,531 | ) | (8,876 | ) | (6,578 | ) | |||||||
| Adjusted net income | $ | 16,612 | $ | 15,895 | $ | 26,401 | $ | 27,820 | |||||||
| Adjusted EPS | |||||||||||||||
| Basic | $ | 0.40 | $ | 0.38 | $ | 0.63 | $ | 0.67 | |||||||
| Diluted | $ | 0.40 | $ | 0.38 | $ | 0.63 | $ | 0.67 | |||||||
| Weighted average shares used to compute adjusted EPS | |||||||||||||||
| Basic | 41,788 | 41,673 | 41,749 | 41,662 | |||||||||||
| Diluted | 41,866 | 41,705 | 41,819 | 41,717 | |||||||||||
(1) Represents various acquisition-related costs and expenses incurred to acquire and integrate acquired entities into the Company’s operations and the impact of the finished goods inventory and property, plant and equipment valuation adjustments recorded in connection with the purchase of acquired assets, per period as follows:
| For the three months ended | For the six months ended | ||||||||||
| July 4, 2025 | June 28, 2024 | July 4, 2025 | June 28, 2024 | ||||||||
| Acquisition related costs and expenses | $ | 276 | $ | 470 | $ | 479 | $ | 1,148 | |||
| Purchase accounting property, plant and equipment fair value adjustment amortization | 269 | — | 519 | — | |||||||
| Purchase accounting inventory fair value adjustment amortization | 178 | — | 342 | 4,485 | |||||||
| Other acquisition and integration-related expenses | $ | 723 | $ | 470 | $ | 1,340 | $ | 5,633 | |||
(2) Represents expenses associated with various restructuring initiatives.
(3) Represents costs associated with various strategic initiatives.
(4) All tax impacts are calculated using the annual effective tax rate, except for tax impact of goodwill impairment. The effective rate of the goodwill impairment was
FOX FACTORY HOLDING CORP.
NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION AND
CALCULATION OF NET INCOME MARGIN AND ADJUSTED EBITDA MARGIN
(in thousands, except percentages)
(unaudited)
The following tables provide a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted EBITDA (a non-GAAP measure), and a reconciliation of net income margin to adjusted EBITDA margin (a non-GAAP measure) for the three and six months ended July 4, 2025 and June 28, 2024. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.
| For the three months ended | For the six months ended | ||||||||||||||
| July 4, 2025 | June 28, 2024 | July 4, 2025 | June 28, 2024 | ||||||||||||
| Net sales | |||||||||||||||
| Powered Vehicles Group | $ | 123,514 | $ | 117,795 | $ | 245,612 | $ | 235,908 | |||||||
| Aftermarket Applications Group | 114,144 | 107,129 | 226,058 | 208,981 | |||||||||||
| Specialty Sports Group | 137,206 | 123,567 | 258,224 | 237,074 | |||||||||||
| Net sales | $ | 374,864 | $ | 348,491 | $ | 729,894 | $ | 681,963 | |||||||
| Net income (loss) | $ | 2,705 | $ | 5,407 | $ | (257,029 | ) | $ | 1,911 | ||||||
| Goodwill impairment | — | — | 262,129 | — | |||||||||||
| Provision (benefit) from income taxes | 2,800 | (371 | ) | (837 | ) | (1,638 | ) | ||||||||
| Depreciation and amortization(1) | 21,449 | 20,403 | 43,188 | 40,854 | |||||||||||
| Non-cash stock-based compensation | 4,562 | 2,203 | 7,917 | 6,109 | |||||||||||
| Litigation and settlement-related expenses | 474 | 1,231 | 1,191 | 2,760 | |||||||||||
| Other acquisition and integration-related expenses(2) | 723 | 470 | 1,340 | 5,633 | |||||||||||
| Organizational restructuring expenses(3) | 3,557 | 413 | 5,170 | 476 | |||||||||||
| Organizational restructuring related losses | 392 | — | 1,090 | — | |||||||||||
| Strategic transformation costs(4) | — | 822 | 20 | 1,254 | |||||||||||
| Interest and other expense, net | 12,631 | 13,554 | 24,716 | 27,192 | |||||||||||
| Adjusted EBITDA | $ | 49,293 | $ | 44,132 | $ | 88,895 | $ | 84,551 | |||||||
| Net income (loss) margin | 0.7 | % | 1.6 | % | (35.2)% | 0.3 | % | ||||||||
| Adjusted EBITDA margin | 13.1 | % | 12.7 | % | 12.2 | % | 12.4 | % | |||||||
| Powered Vehicles Group | $ | 16,387 | $ | 15,889 | $ | 30,769 | $ | 31,770 | |||||||
| Aftermarket Applications Group | 16,016 | 14,156 | 33,010 | 29,026 | |||||||||||
| Specialty Sports Group | 30,385 | 29,214 | 53,779 | 53,271 | |||||||||||
| Unallocated corporate expenses | (13,495 | ) | (15,127 | ) | (28,663 | ) | (29,516 | ) | |||||||
| Adjusted EBITDA | $ | 49,293 | $ | 44,132 | $ | 88,895 | $ | 84,551 | |||||||
(1) Depreciation excludes amortization for purchase accounting property, plant and equipment fair value adjustment.
(2) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations and the impact of the finished goods inventory and property, plant and equipment valuation adjustments recorded in connection with the purchase of acquired assets, per period as follows:
| For the three months ended | For the six months ended | ||||||||||
| July 4, 2025 | June 28, 2024 | July 4, 2025 | June 28, 2024 | ||||||||
| Acquisition related costs and expenses | $ | 276 | $ | 470 | $ | 479 | $ | 1,148 | |||
| Purchase accounting property, plant and equipment fair value adjustment amortization | 269 | — | 519 | — | |||||||
| Purchase accounting inventory fair value adjustment amortization | 178 | — | 342 | 4,485 | |||||||
| Other acquisition and integration-related expenses | $ | 723 | $ | 470 | $ | 1,340 | $ | 5,633 | |||
(3) Represents expenses associated with various restructuring initiatives, excluding
(4) Represents costs associated with various strategic initiatives.
FOX FACTORY HOLDING CORP.
GROSS PROFIT TO ADJUSTED GROSS PROFIT RECONCILIATION AND
CALCULATION OF GROSS MARGIN AND ADJUSTED GROSS MARGIN
(in thousands, except percentages)
(unaudited)
The following table provides a reconciliation of gross profit to adjusted gross profit (a non-GAAP measure) for the three and six months ended July 4, 2025 and June 28, 2024, and the calculation of gross margin and adjusted gross margin (a non-GAAP measure). These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.
| For the three months ended | For the six months ended | ||||||||||||||
| July 4, 2025 | June 28, 2024 | July 4, 2025 | June 28, 2024 | ||||||||||||
| Net sales | $ | 374,864 | $ | 348,491 | $ | 729,894 | $ | 681,963 | |||||||
| Gross profit | $ | 116,991 | $ | 110,963 | $ | 226,670 | $ | 214,121 | |||||||
| Amortization of acquired inventory valuation markup | 178 | — | 342 | 4,485 | |||||||||||
| Organizational restructuring expenses | — | 86 | — | 86 | |||||||||||
| Adjusted Gross Profit | $ | 117,169 | $ | 111,049 | $ | 227,012 | $ | 218,692 | |||||||
| Gross Margin | 31.2 | % | 31.8 | % | 31.1 | % | 31.4 | % | |||||||
| Adjusted Gross Margin | 31.3 | % | 31.9 | % | 31.1 | % | 32.1 | % | |||||||
FOX FACTORY HOLDING CORP.
OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE RECONCILIATION AND
CALCULATION OF ADJUSTED OPERATING EXPENSE MARGIN
(in thousands, except percentages)
(unaudited)
The following tables provide a reconciliation of operating expense to adjusted operating expense (a non-GAAP measure) and the calculations of operating expense margin and adjusted operating expense margin (a non-GAAP measure), for the three and six months ended July 4, 2025 and June 28, 2024. These non-GAAP financial measures are provided in addition to, and not as an alternative for, the Company’s reported GAAP results.
| For the three months ended | For the six months ended | ||||||||||||||
| July 4, 2025 | June 28, 2024 | July 4, 2025 | June 28, 2024 | ||||||||||||
| Net sales | $ | 374,864 | $ | 348,491 | $ | 729,894 | $ | 681,963 | |||||||
| Operating expense | $ | 98,463 | $ | 92,373 | $ | 458,729 | $ | 186,656 | |||||||
| Goodwill impairment | — | — | (262,129 | ) | — | ||||||||||
| Amortization of purchased intangibles | (10,356 | ) | (11,083 | ) | (21,276 | ) | (22,320 | ) | |||||||
| Litigation and settlement-related expenses | (474 | ) | (1,231 | ) | (1,191 | ) | (2,760 | ) | |||||||
| Other acquisition and integration-related expenses(1) | (545 | ) | (470 | ) | (998 | ) | (1,148 | ) | |||||||
| Organizational restructuring expenses(2) | (3,557 | ) | (327 | ) | (5,170 | ) | (435 | ) | |||||||
| Strategic transformation costs(3) | — | (822 | ) | (20 | ) | (1,254 | ) | ||||||||
| Adjusted operating expense | $ | 83,531 | $ | 78,440 | $ | 167,945 | $ | 158,739 | |||||||
| Operating expense margin | 26.3 | % | 26.5 | % | 62.8 | % | 27.4 | % | |||||||
| Adjusted operating expense margin | 22.3 | % | 22.5 | % | 23.0 | % | 23.3 | % | |||||||
(1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations, excluding amortization for purchase accounting inventory fair value adjustment that was classified as cost of sales.
(2) Represents expenses associated with various restructuring initiatives.
(3) Represents costs associated with various strategic initiatives.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release including earnings guidance may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends that all such statements be subject to the “safe-harbor” provisions contained in those sections. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “might,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “likely,” “potential”, “remain” or “continue” or the negative of these words or other similar terms or expressions that concern the Company’s expectations, strategy, plans or intentions. Such forward-looking statements include, but are not limited to, statements with regard to expectations related to the future performance of FOX; the Company’s expected demand for its products; the Company’s execution on its strategy to improve operating efficiencies; the Company’s expectation regarding its operating results and future growth prospects; the Company’s expected future sales and future adjusted earnings per diluted share; and any other statements in this press release that are not of a historical nature. Many important factors may cause the Company’s actual results, events or circumstances to differ materially from those discussed in any such forward-looking statements, including but not limited to: the Company’s ability to maintain its suppliers for materials, product parts and vehicle chassis without significant supply chain disruptions; the Company’s ability to improve operating and supply chain efficiencies; the Company’s ability to enforce its intellectual property rights; the Company’s future financial performance, including its sales, cost of sales, gross profit or gross margin, operating expenses, ability to generate positive cash flow and ability to maintain profitability; the Company’s ability to adapt its business model to mitigate the impact of certain changes in tax laws, tariffs, and international trade policies; changes in the relative proportion of profit earned in the numerous jurisdictions in which the Company does business and in tax legislation, case law and other authoritative guidance in those jurisdictions; factors which impact the calculation of the weighted average number of diluted shares of common stock outstanding, including the market price of the Company’s common stock, grants of equity-based awards and the vesting schedules of equity-based awards; the Company’s ability to develop new and innovative products in its current end-markets and to leverage its technologies and brand to expand into new categories and end-markets; the spread of highly infectious or contagious diseases, such as COVID-19, causing disruptions in the U.S. and global economy and disrupting the business activities and operations of the Company’s customers, business and operations; the Company’s ability to increase its aftermarket penetration; the Company’s exposure to exchange rate fluctuations; the loss of key customers; our ability to accurately forecast demand for our products; strategic transformation costs; legal and regulatory developments, including the outcome of pending litigation or regulatory or other governmental inquiries, and the impact of changing emissions and other regulations in the various jurisdictions in which our products are produced, used, and/or sold; the cost of compliance with, or liabilities related to, environmental or other governmental regulations or changes in governmental or industry regulatory standards; the possibility that the Company may not be able to accelerate its international growth; the Company’s ability to maintain its premium brand image and high-performance products; the Company’s ability to maintain relationships with the professional athletes and race teams that it sponsors; the possibility that the Company may not be able to selectively add additional dealers and distributors in certain geographic markets; the overall growth of the markets in which the Company competes; the Company’s expectations regarding consumer preferences and its ability to respond to changes in consumer preferences and effectively compete against competitors; changes in demand for performance-defining products as well as the Company’s other products; the Company’s loss of key personnel, management and skilled engineers; the Company’s ability to successfully identify, evaluate and manage potential acquisitions and to benefit from such acquisitions; the Company’s ability to complete any acquisition and/or incorporate any acquired assets into its business; product recalls and product liability claims; the impact of change in China-Taiwan relations on the Company’s business, operations or supply chain, the impact of the Russian invasion of Ukraine or the Israel-Palestine conflict or rising tension in the Middle East on the global economy, energy supplies and raw materials; future economic or market conditions, including the impact of inflation or the U.S. Federal Reserve’s interest rate changes in response thereto; changes in commodity, freight, and tariff costs (including tariff relief or our ability to mitigate tariffs, particularly in light of the policies of the current presidential administration and retaliatory actions in response thereto); our ability to mitigate increasing input costs through pricing or other measures; and the other risks and uncertainties described in “Risk Factors” contained in its Annual Report on Form 10-K for the fiscal year ended January 3, 2025 and filed with the Securities and Exchange Commission on February 28, 2025, or Quarterly Reports on Form 10-Q or otherwise described in the Company’s other filings with the Securities and Exchange Commission. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT:
ICR
Jeff Sonnek
646-277-1263
Jeff.Sonnek@icrinc.com
FAQ
What were Fox Factory's Q2 2025 earnings results?
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