Fox Factory (NASDAQ:FOXF) Announces Earnings Results, Beats Expectations By $0.19 EPS

Fox Factory (NASDAQ:FOXF) posted its earnings results on Thursday. The company reported $0.37 EPS for the quarter, beating analysts’ consensus estimates of $0.18 by $0.19, Zacks reports. The company had revenue of $358.12 million during the quarter, compared to analysts’ expectations of $352.94 million. Fox Factory had a negative net margin of 20.39% and a positive return on equity of 5.39%. Fox Factory’s revenue for the quarter was down 4.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.40 earnings per share.

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

• Raised full-year revenue guidance to $1.42 billion-$1.47 billion and narrowed adjusted EBITDA guidance to $176 million-$196 million, despite roughly $20 million of incremental input-cost inflation versus the original plan.
• The profit-optimization program remains on track, with more than $25 million of gross savings captured in the first half toward the approximately $50 million 2026 target; lower operating expenses and improved working capital also supported sequential margin expansion.
• Elevated steel and aluminum, freight, fuel, tariffs, and supply-chain costs continue to pressure profitability, while aluminum shortages affecting Ford F-150 production and Toyota production cuts constrained automotive-related volumes.
• Powersports revenue grew 22.5% year over year in the quarter, while new vehicle awards, including an autonomous EV program and expanded Live Valve applications, are expected to contribute meaningful volume beginning in late 2026 and into 2027-2028.
• Bike demand is stabilizing but management expects the business to be roughly flat year over year, while Marucci is relying on delayed bat launches, softball growth, and inventory cleanup to improve second-half performance.

Fox Factory Stock Performance

NASDAQ FOXF traded up $2.27 on Friday, hitting $21.13. 1,981,673 shares of the company’s stock traded hands, compared to its average volume of 499,787. The firm’s 50-day moving average price is $18.09 and its two-hundred day moving average price is $17.78. The firm has a market capitalization of $886.19 million, a PE ratio of -2.96, a P/E/G ratio of 0.74 and a beta of 1.35. The company has a current ratio of 2.99, a quick ratio of 1.52 and a debt-to-equity ratio of 1.00. Fox Factory has a 1-year low of $13.08 and a 1-year high of $30.75.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in FOXF. Russell Investments Group Ltd. grew its position in Fox Factory by 12.3% during the 2nd quarter. Russell Investments Group Ltd. now owns 7,818 shares of the company’s stock worth $203,000 after purchasing an additional 858 shares during the period. Tower Research Capital LLC TRC increased its stake in shares of Fox Factory by 526.0% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,925 shares of the company’s stock valued at $206,000 after purchasing an additional 6,659 shares in the last quarter. Entropy Technologies LP acquired a new position in Fox Factory in the 3rd quarter worth about $208,000. Diversify Wealth Management LLC acquired a new position in Fox Factory in the 2nd quarter worth about $217,000. Finally, Caxton Associates LLP purchased a new position in Fox Factory during the second quarter worth approximately $227,000.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on FOXF. Stifel Nicolaus set a $24.00 target price on Fox Factory in a research note on Thursday, April 16th. Roth Capital reiterated a “neutral” rating and issued a $20.00 price target on shares of Fox Factory in a research note on Friday, May 8th. Bank of America downgraded Fox Factory from a “neutral” rating to an “underperform” rating and lowered their price target for the stock from $24.00 to $20.00 in a report on Tuesday, June 30th. Needham & Company LLC restated a “buy” rating on shares of Fox Factory in a research note on Wednesday, June 3rd. Finally, Zacks Research upgraded shares of Fox Factory from a “strong sell” rating to a “hold” rating in a report on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Fox Factory currently has an average rating of “Hold” and a consensus price target of $21.00.

Trending Headlines about Fox Factory

Here are the key news stories impacting Fox Factory this week:

• Positive Sentiment: Fox Factory reported second-quarter fiscal 2026 adjusted earnings of $0.37 per share, well above the $0.16–$0.18 analyst consensus, while revenue of $358.1 million also surpassed estimates of approximately $352.9 million. Fox Factory Reports Second Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Management projected third-quarter revenue of $355 million to $380 million, above the roughly $345.1 million consensus estimate, signaling expectations for sequential improvement. Fox Factory Third-Quarter Revenue Forecast
• Positive Sentiment: The company outlined 2026 sales expectations of approximately $1.42 billion to $1.47 billion and reaffirmed its goal of achieving $50 million in cost savings. The savings plan could support margins and profitability if successfully implemented. Fox Factory 2026 Sales Outlook and Cost Savings Goal
• Neutral Sentiment: Brokerages maintained a consensus “Hold” recommendation, suggesting analysts see a balanced risk-reward profile despite the earnings and guidance beats. Fox Factory Receives Consensus Hold Recommendation
• Negative Sentiment: Second-quarter revenue declined 4.5% year over year, and EPS fell from $0.40 in the prior-year period to $0.37. Fox Factory also reported a negative net margin, highlighting continued profitability pressure despite the quarterly beat. Fox Factory Beats Second-Quarter Earnings and Revenue Estimates

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.