Fox Factory (NASDAQ:FOXF) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Fox Factory (NASDAQ:FOXF) released its quarterly earnings results on Thursday. The company reported $0.20 earnings per share for the quarter, beating analysts’ consensus estimates of $0.15 by $0.05, FiscalAI reports. Fox Factory had a negative net margin of 17.66% and a positive return on equity of 4.84%. The company had revenue of $361.07 million for the quarter, compared to analyst estimates of $353.88 million. During the same period last year, the firm earned $0.31 earnings per share. The firm’s revenue was up 2.3% on a year-over-year basis.

Here are the key takeaways from Fox Factory’s conference call:

• The company is executing a Phase Two profit plan to complement Phase One (which delivered $25M in 2025), targeting roughly $50M of incremental cost reductions in 2026 and guiding to adjusted EBITDA of $174M–$203M (about 13.7% at the midpoint, ~200 bps improvement) while lowering revenue guidance to $1.328B–$1.416B.
• Q4 results included a $295.2M non‑cash goodwill impairment; adjusted Q4 EBITDA fell to $35M from $40.4M year‑over‑year and adjusted EPS was $0.20 vs. $0.31, underscoring near‑term margin pressure.
• Management is actively rationalizing the portfolio—already moving to divest the Phoenix operations and exit Shock Therapy, Upfit UTV, and Geiser—with proceeds earmarked for debt reduction and the exits expected to be immediately accretive and improve AAG margins.
• Tariffs remain a material headwind (company reports ~$50M gross impact in 2025 with $25M mitigated; expects ~$30M gross in 2026 and ~$15M net headwind in H1), and any tariff refunds or legal outcomes are uncertain and not assumed in guidance.

Fox Factory Stock Performance

NASDAQ FOXF traded down $0.66 during trading on Thursday, hitting $18.36. 607,937 shares of the company’s stock traded hands, compared to its average volume of 495,186. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.36 and a current ratio of 2.98. The stock has a market capitalization of $767.45 million, a price-to-earnings ratio of -2.97 and a beta of 1.50. Fox Factory has a 12-month low of $13.08 and a 12-month high of $31.18. The business has a 50 day moving average of $18.64 and a 200-day moving average of $21.24.

Institutional Trading of Fox Factory

A number of institutional investors have recently modified their holdings of the business. Nantahala Capital Management LLC grew its stake in Fox Factory by 200.3% in the 4th quarter. Nantahala Capital Management LLC now owns 2,188,300 shares of the company’s stock valued at $37,442,000 after buying an additional 1,459,652 shares in the last quarter. Towle & Co. purchased a new position in shares of Fox Factory in the fourth quarter valued at $8,967,000. Renaissance Technologies LLC raised its stake in shares of Fox Factory by 294.3% during the 4th quarter. Renaissance Technologies LLC now owns 547,693 shares of the company’s stock valued at $9,371,000 after purchasing an additional 408,800 shares during the period. Tenzing Global Management LLC purchased a new stake in Fox Factory during the 2nd quarter worth about $9,079,000. Finally, Empowered Funds LLC purchased a new stake in Fox Factory during the 4th quarter worth about $3,285,000.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on FOXF shares. CJS Securities raised Fox Factory to a “strong-buy” rating in a report on Thursday, December 11th. Roth Mkm cut their price objective on Fox Factory from $21.00 to $19.00 and set a “neutral” rating on the stock in a research report on Tuesday, January 6th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Fox Factory in a research report on Thursday, January 22nd. Finally, Zacks Research downgraded shares of Fox Factory from a “hold” rating to a “strong sell” rating in a report on Wednesday, February 4th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Fox Factory presently has a consensus rating of “Hold” and an average target price of $30.17.

Fox Factory Company Profile

Fox Factory Holding Corp., headquartered in Duluth, Minnesota, designs, engineers and manufactures high-performance suspension systems, shock absorbers and related components for powersports, light-vehicle and mountain-bike applications. The company’s FOX brand offers a comprehensive portfolio of forks, shocks, coilovers and internal bypass dampers aimed at OEM and aftermarket customers seeking enhanced ride quality, control and durability across off-road vehicles, motorcycles and bicycles.

Founded in 1974 by Bob Fox in California, Fox Factory has expanded its technology base and market reach through strategic acquisitions such as Marzocchi Suspension, DVO Suspension and Walker Evans Racing.