Fox Factory Lowers 2026 Outlook After Preliminary Q3 Shortfall

Fox Factory Holding Corp. cut its fiscal 2026 sales and adjusted EBITDA outlook after preliminary third-quarter results came in below its previous ranges, while naming a board member interim CEO.

For the quarter ended Oct. 2, Fox Factory expects net sales of $336 million to $340 million, down from its earlier range of $355 million to $380 million. Adjusted EBITDA is expected at $38 million to $42 million, excluding about $12 million in tariff refunds. The previous adjusted EBITDA range was $46 million to $54 million and also excluded refunds. Fox Factory makes products for specialty sports and on- and off-road vehicles.

The company lowered its fiscal 2026 net sales outlook to $1.35 billion to $1.38 billion from $1.42 billion to $1.47 billion. About $63 million of the reduction reflects the Sept. 25 divestiture of Marucci Sports, including roughly $50 million in fourth-quarter sales that had been part of the previous outlook. The updated forecast also incorporates preliminary third-quarter results and revised expectations for the fourth quarter.

Fox Factory now expects fiscal-year adjusted EBITDA of $140 million to $150 million, excluding about $14 million in tariff refunds, compared with its previous guidance of $176 million to $196 million. Including the refunds, the updated estimate is $154 million to $164 million.

The company attributed the preliminary quarter’s shortfall mainly to lower Marucci sales and margins, supply disruptions and higher costs in its Powered Vehicles Group, and challenges in the upfit business of its Aftermarket Applications Group. It also cited softer bike sales in its Specialty Sports Group.

The third-quarter figures are preliminary and unaudited and may change as quarter-end close procedures are completed. The board approved the leadership transition plan Oct. 15. Board member Douglas Grimm’s interim CEO appointment took effect Oct. 16. Mike Dennison stepped down as CEO as Grimm became interim CEO on Oct. 16. Dennison resigned from the board effective Oct. 15 and remains a company employee while transition terms are discussed.

Jean Hlay, Fox Factory board chair, said: “The Board and I look forward to working with him in this new capacity while we conduct a rigorous search for a permanent leader.”