Fox Factory Reports $15M Net Loss, Improved from $259.7M Last Year

Fox Factory Holding Corp. reported a net loss of $15.0 million for the three months ended April 3, 2026, a significant improvement compared to a net loss of $259.7 million in the same period last year. This reduction in loss was primarily attributed to the absence of a goodwill impairment charge, which had amounted to $262.1 million in the prior year. The company's net sales increased by 3.9% to $368.7 million, up from $355.0 million, driven by strong demand across its powersports and automotive aftermarket product lines, despite some inventory reductions by distributors and dealers in response to broader economic conditions.

Cost of sales rose to $262.3 million, reflecting a 6.9% increase from $245.4 million, largely due to higher sales volumes and the impact of tariffs. Consequently, the gross margin decreased to 28.9%, down from 30.9% in the previous year. Operating expenses totaled $100.4 million, a substantial decrease from $360.3 million, primarily due to the prior year's goodwill impairment. General and administrative expenses increased slightly to $38.6 million, while research and development costs rose to $18.5 million as the company continued to invest in product innovation.

In terms of operational metrics, the Powered Vehicles Group saw a notable increase in net sales of $21.3 million, or 17.4%, driven by heightened demand in powersports. The Aftermarket Applications Group experienced a modest sales increase of 2.6%, while the Specialty Sports Group's sales declined by 8.7%, attributed to inventory reductions by dealers. The company reported adjusted EBITDA of $51.4 million, down from $54.8 million, reflecting the mixed performance across its segments.

Fox Factory's balance sheet as of April 3, 2026, showed total assets of $1.66 billion, a slight decrease from $1.67 billion at the beginning of the year. The company maintained a cash position of $53.9 million, down from $58.0 million, while accounts receivable increased to $209.1 million, indicating higher sales. The company’s total liabilities were $1.00 billion, with a current portion of long-term debt remaining stable at $26.9 million.

Looking ahead, Fox Factory anticipates that its existing liquidity, combined with cash flows from operations and access to its credit facilities, will be sufficient to support its operational needs over the next 12 months. The company continues to navigate challenges related to tariffs and inflation, which may impact its cost structure and working capital requirements. Additionally, Fox Factory is evaluating the potential for tariff refunds following recent legal developments, which could further influence its financial outlook.