Fox Factory Reports Mixed Q3 Results with Increased Sales but Net Loss

Fox Factory Holding Corp. reported its financial results for the third quarter and the first nine months of fiscal 2025, revealing a mixed performance amid challenging market conditions. For the three months ended October 3, 2025, the company achieved net sales of $376.4 million, a 4.8% increase from $359.1 million in the same period last year. However, the company recorded a net loss of $0.7 million, a significant decline from a net income of $4.8 million in the prior year, primarily due to a $262.1 million goodwill impairment charge recognized earlier in the fiscal year.

In terms of profitability, the gross profit for the third quarter was $114.5 million, up from $107.5 million a year earlier, resulting in a gross margin of 30.4%. Operating expenses rose to $99.4 million, compared to $88.7 million in the previous year, driven by increased general and administrative costs related to organizational restructuring and investments in sales and marketing. The company’s income from operations decreased by 19.7% to $15.1 million, reflecting the impact of rising costs and the impairment charge.

Fox Factory's strategic developments included the acquisition of Marzocchi Suspension S.r.l., which contributed to the Powered Vehicles Group's sales growth. The Powered Vehicles Group reported a 15.1% increase in net sales to $125.9 million, while the Aftermarket Applications Group also saw a 17.4% increase to $117.8 million. Conversely, the Specialty Sports Group experienced an 11.2% decline in sales, attributed to reduced inventory levels among OEMs and distributors in response to economic conditions.

The company’s balance sheet as of October 3, 2025, showed total assets of $1.97 billion, down from $2.23 billion at the beginning of the fiscal year, largely due to the goodwill impairment. Total liabilities decreased slightly to $1.02 billion from $1.03 billion. Cash and cash equivalents stood at $65.4 million, down from $71.7 million at the start of the fiscal year. The company continues to navigate a challenging environment marked by high interest rates and inflation, which have impacted consumer demand and operational costs.

Looking ahead, Fox Factory remains focused on leveraging its brand and product offerings to drive growth, particularly in the aftermarket segment. The company anticipates that its existing liquidity and access to credit facilities will provide sufficient flexibility to manage ongoing market challenges. However, it acknowledges that macroeconomic conditions, including inflation and interest rate volatility, may continue to pose risks to its financial performance.