| Metric | Value ($ M) | Q1 FY26 |
|---|---|---|
| Revenue | 368.66 | 3.8% |
| Total Income | 368.66 | 3.8% |
| Expenditure | 362.71 | 40.1% |
| PBT | -15.63 | 94.1% |
| Net Profit | -15.00 | 94.2% |
| OPM | 1.61% | 72.20pp |
| NPM | -4.07% | 69.08pp |
| EPS | -0.36 | 94.2% |
Fox Factory Reports Q1 FY26 Net Sales Up 3.9% to $368.7 Million
08 May 2026 · 8 May, 1:51 am
Summary
Fox Factory Holding Corp. delivered a solid first fiscal quarter of 2026, with net sales growing 3.9% year-over-year to $368.7 million, meeting the high end of its guidance. Despite reporting a net loss of $15.0 million, adjusted EBITDA of $35.7 million surpassed the high end of guidance, demonstrating effective cost management. The company is on track to achieve approximately $50 million in fiscal 2026 cost savings and has strategically divested its Phoenix, Arizona AAG operations to focus on core, higher-margin businesses. Management expressed confidence in delivering meaningful operating leverage as end markets are anticipated to accelerate.
Key Highlights
- 1
Net sales for the first fiscal quarter of 2026 increased 3.9% year-over-year to $368.7 million, reaching the high end of the company's guidance.
- 2
The company reported a net loss of $15.0 million, or $0.36 per diluted share, which included charges associated with divestitures, a significant improvement from the $259.7 million net loss in the prior year quarter that included a goodwill impairment.
- 3
Adjusted earnings per diluted share for the quarter stood at $0.18, compared to $0.23 in the comparable prior year period.
- 4
Adjusted EBITDA reached $35.7 million, exceeding the high end of guidance, though it was lower than the $39.6 million reported in the first quarter of fiscal 2025.
- 5
Gross margin for the first quarter of fiscal 2026 was 28.9%, a decrease from 30.9% in the prior year, primarily driven by the net impact of tariffs and shifts in product line mix.
- 6
Fox Factory reaffirmed its target of approximately $50 million in fiscal 2026 cost savings, with Phase 2 actions progressing on schedule.
- 7
The company completed the divestiture of its Phoenix, Arizona AAG operations, including the Shock Therapy, Upfit UTV, and Geiser businesses, dedicating the proceeds to debt reduction.
Management Comments
Mike Dennison
We delivered a solid first quarter, with revenue at the high end of our guidance range and adjusted EBITDA exceeding the high end of our guidance range. The team is executing against the plan we laid out in February — taking cost out, sharpening the portfolio, and building resilience in an end-market environment that remains subdued. Phase 1 carryover benefits are flowing through as expected, Phase 2 is on schedule, and we are on track to deliver approximately $50 million in cost savings this year. The completion of the Phoenix divestiture during the quarter further focuses our portfolio on the core, higher-margin businesses that define Fox Factory. Combined with our disciplined approach to capital allocation and balance sheet management, these actions position us to deliver meaningful operating leverage as our end markets accelerate — and be structurally stronger across our market leading product categories.
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