FOXF

Interested in Fox Factory Holding Corp.? Here are five stocks we like better. Strong second-quarter execution: Revenue was $358.1 million, down 4.5% year over year, while adjusted EBITDA reached $45.5 million, exceeding guidance by about $5 million. Excluding tariff refunds, adjusted EBITDA margin improved sequentially to approximately 12.2%. Cost savings are being offset by inflation: Fox Factory captured more than $25 million in savings during the first half and remains on track for roughly $50 million in annual savings, but tariffs, commodities, freight and fuel are expected to add nearly $20 million in costs versus its plan. Full-year revenue outlook raised: The company increased 2026 revenue guidance to $1.42 billion–$1.47 billion while narrowing adjusted EBITDA guidance to $176 million–$196 million. New vehicle awards, electric-vehicle programs and stabilizing powersports and bicycle markets are expected to support future growth, while net leverage stood at 3.7 times at quarter-end. From Zero to Hero? Why GoPro's Rally Could Be More Than It Seems Fox Factory (NASDAQ:FOXF) reported second-quarter 2026 revenue at the high end of its guidance range and adjusted EBITDA above expectations, while raising its full-year sales outlook and maintaining its cost-savings target amid elevated commodity, freight and fuel expenses. Revenue for the second quarter totaled $358.1 million, down 4.5% from a year earlier and 2.9% sequentially. Adjusted EBITDA was $45.5 million, about $5 million above the high end of the company’s guided range. The result included roughly $2 million in IEEPA tariff refunds; excluding those proceeds, adjusted EBITDA margin was approximately 12.2%, up about 250 basis points sequentially from the first quarter on a comparable basis. → 3 Drone Stocks That Should Soar After the Summer Slump Top 2 Small Cap Automotive Stocks Set for a Strong Rally “Revenue growth is returning,” Chief Executive Officer Michael Dennison said, citing new product programs, partnerships and operational productivity. He said the company’s revenue decline from the first quarter was expected, reflecting the divestiture of Phoenix operations, shipment timing and lower Ford F-150 volumes related to aluminum supply disruption. Fox Factory said it captured more than $25 million of gross savings during the first half and remains on track to achieve approximately $50 million for the full year. The company said the savings include roughly $10 million of carryover from phase one of its profit-optimization program and about $40 million from phase two. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth However, the company said higher input costs have limited the net benefit. Chief Financial Officer Dennis Schemm said incremental input-cost inflation is running nearly $20 million above assumptions in the company’s full-year plan, driven by tariffs, commodities, freight and fuel costs. About $15 million of that additional pressure is expected in the second half. Gross margin was 30.6%, compared with 31.2% a year earlier, as product mix and higher external costs more than offset cost-savings realization. Adjusted operating expenses fell to $78.5 million, or 21.9% of revenue, from $83.5 million, or 22.3% of revenue, in the prior-year period. → Jersey Mike's Serves Fresh Gains After IPO Stumble Schemm said the company does not assume relief in commodity, freight or fuel costs in its outlook. Fox Factory expects margin expansion in the second half as phase-two savings increase, last year’s tariffs are lapped and pricing and surcharge recovery initiatives move forward with OEM and channel partners. Powered Vehicles Group: Net sales rose slightly year over year to $124.2 million. Powersports revenue increased 22.5% in the quarter and 28% in the first half, as OEM customers worked through channel inventory imbalances. Automotive results remained affected by aluminum supply constraints that reduced F-150 production, as well as supply-chain issues at Toyota. Aftermarket Applications Group: Sales fell 4% to $109.6 million, including an approximately $5.5 million impact from the Phoenix divestiture. Excluding that effect, the segment posted modest growth despite reduced F-150 volumes. Segment margin improved about 70 basis points year over year and roughly 500 basis points sequentially. Specialty Sports Group: Revenue declined 9.4% year over year to $124.3 million but rose 12.5% from the first quarter. The company said bicycle revenue should remain broadly stable for the year, with a seasonal pickup expected in the third quarter. Segment margin was essentially flat despite lower sales. Dennison said Fox Factory is seeing stabilization in both powersports and premium bicycle suspension following periods of inventory disruption. In bike, he pointed to demand for new e-bike, drivetrain, battery and motor technologies, adding that some products have sold out. The company also said it launched next-year bicycle models during the second quarter. Within Marucci, the company delayed a new bat launch from the second quarter into the third quarter to support inventory availability and give the product a stronger market launch. Dennison said the company is working through existing sporting-goods inventory while using innovation to support demand. He said softball has become an increasingly important contributor to Marucci, while Lizard Skins and certain glove categories have performed strongly. Fox Factory said it launched 12 new vehicle fitments during the year, including expanded aftermarket Live Valve offerings. The company cited new powersports applications, including Kawasaki’s Teryx H2 with Fox’s advanced chassis control system and Polaris’ RZR Pro R Boost using Fox 3.0 Live Valve X2 shocks. The company also said it received a new vehicle award from an existing automotive OEM that is expected to generate meaningful volume in 2028. Separately, it won business with a new electric-vehicle OEM for an autonomous-vehicle application. Shipments for that program are expected to begin late in 2026 and contribute incremental volume in 2027. In its aftermarket upfitting business, Fox Factory said its traditional custom upfit operations remain its primary go-to-market model. But new OEM-driven customization programs are expected to provide dealer access, reduce marketing and sales complexity, and improve factory utilization, even though they generally carry less content per vehicle than traditional custom builds. Fox Factory raised its full-year 2026 revenue outlook to a range of $1.42 billion to $1.47 billion. It narrowed adjusted EBITDA guidance to $176 million to $196 million, representing approximately 5% to 16% growth over fiscal 2025 on roughly flat revenue, according to the company. The revised outlook implies full-year adjusted EBITDA margin of approximately 12.4% to 13.3%, below the roughly 13.1% to 14.3% margin range implied by February guidance because of inflation and mix dynamics. For the third quarter, Fox Factory expects net sales of $355 million to $380 million and adjusted EBITDA of $46 million to $54 million. The outlook reflects the delayed Marucci product launch and normalization of bike volumes after a supplier disruption, partially offset by continued chassis supply constraints in automotive-related operations. At quarter-end, cash and cash equivalents were $61.3 million, while total debt was $667.7 million, down $20.5 million sequentially. The company’s net leverage ratio was 3.7 times, compared with a five-times covenant under its amended credit agreement. Fox Factory said it expects meaningful debt reduction progress during the remainder of the year through EBITDA improvement, working-capital management and disciplined capital spending. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Fox Factory Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Fox Factory Holding Corp (NASDAQ:FOXF) delivered second-quarter revenue at the high end of its guided range and adjusted EBITDA approximately $5 million above the high end of its guidance. The company's profit optimization program is on schedule, capturing more than $25 million in gross savings in the first half of 2026, with a reaffirmed target of approximately $50 million in total gross savings for the year. Powersports segment showed strong growth, with sales up 22.5% in the second quarter and 28% in the first half year-over-year, as OEM customers worked through channel inventory imbalances. The company has won significant new business awards, including a new vehicle with an existing OEM for 2028 and a new electric vehicle OEM for an autonomous vehicle, which will drive incremental volume in 2027. Fox Factory Holding Corp (NASDAQ:FOXF) is raising its full-year net sales guidance and narrowing its adjusted EBITDA outlook, reflecting confidence in its cost-out programs and back-half performance. The company improved its cash conversion cycle by approximately 12 days year-over-year and reduced days inventory on hand to approximately 136 days from 150 days a year ago. Adjusted EBITDA margin expanded approximately 250 basis points sequentially in the second quarter, excluding tariff refunds, demonstrating progress on margin recovery. The company is seeing stabilization in its bike and powersports markets, with new product launches in e-bikes and softball driving demand and optimism for future growth. Fox Factory Holding Corp (NASDAQ:FOXF) experienced a 4.5% year-over-year decline in total consolidated net sales for the second quarter, reflecting portfolio optimization and shipment timing issues. The company is facing significant external cost pressures, with incremental input cost inflation running nearly $20 million above its full-year plan due to higher steel, aluminum, freight, and fuel costs. The aluminum supply disruption affecting Ford's F-150 platforms continued to negatively impact volumes in the second quarter, with production expected to resume only in early to mid-September. The company's full-year adjusted EBITDA margin guidance was lowered to approximately 12.4% to 13.3%, down from the roughly 13.1% to 14.3% implied in February, due to persistent inflation. The SSG segment, which includes bike and Marucci, saw a 9.4% year-over-year decrease in net sales, with mixed near-term demand signals as consumers remain cautious. The company's effective tax rate was 36% in the quarter, significantly higher than the federal statutory rate, due to discrete items and lower pretax income. Net debt reduction in the first half was below expectations due to seasonal working capital build and the cash impacts of first-half tariffs, with net leverage at 3.7 times. The company is absorbing significant distribution-related expenses to protect customer delivery schedules, which is compressing net realization of its cost savings programs. Warning! GuruFocus has detected 10 Warning Signs with FOXF. Is FOXF fairly valued? Test your thesis with our free DCF calculator. Q: Can you help us bridge the steep ramp in EBITDA margin into the fourth quarter, as implied by your guidance? What are the key drivers?A: Dennis Shem, CFO: The step-up from 12.2% in Q2 to 13.6% in Q3 and then to roughly 15.6% in Q4 is driven by the net release of our cost savings programs as we anniversary tariffs from the first half of the year. In Q3, we also benefit from the delayed Marucci bat launch and the normalization of bike volumes tied to supplier disruptions. Moving into Q4, the drivers include a recovery in PVG as F-150 chassis supply constraints ease, further margin contribution from Marucci during the holiday season, and the full run rate of our Phase 2 cost optimization actions. Q: Can you unpack what's embedded in your guidance for the bike business in the back half? Are you expecting growth, and how far away are we from seeing more reliable growth in the industry?A: Dennis Shem, CFO: We are expecting the bike business to be extremely stable with the prior year, not necessarily growth, but with strong margins for the entire year. We should see a pickup in Q3 relative to the bike side and then leveling off with normal seasonality in Q4. Mike Dennison, CEO, added that the premium nature of their product offering creates more predictability, and new product launches in e-bike and drivetrain technology are attracting new consumers, with some products sold out, which provides optimism for the business's direction. Q: Regarding the upfitting business, can you help us think about the mix between legacy upfitting and the new OEM-driven customization programs, and expectations for the back half?A: Mike Dennison, CEO: The primary business model is still the core outfitting business. The new OEM-driven customization programs are a smaller part of the mix but are important because they drive dealer growth and engagement through the OEM's marketing and sales channels, and they provide factory absorption and productivity. This relieves complexity and cost for Fox relative to marketing and sales, and the kits are menu-driven, flowing through production quickly to absorb overhead expenses. Q: Can you give us an update on the latest in sporting goods, specifically the delayed Marucci bat launch and order patterns?A: Mike Dennison, CEO: The delay in Q2 was driven by us to ensure we could launch the bat with the right level of inventory in the channels. We delayed the launch to create the best opportunity for a great launch with heavier volume. New product is the best bet against inventory challenges, so we pushed the launch to Q3 to give it the most airtime. We are confident in what it can do in Q3 and Q4. We are also seeing strength in the softball market, which is growing significantly and outpacing growth in most other sectors of Marucci. Q: How are the non-baseball parts of Marucci doing, such as Lizard Skins, the MLB contract, and the grips business?A: Mike Dennison, CEO: Lizard Skins is doing fantastic. We moved its warehousing and distribution to Baton Rouge for optimization, which is helping on the cost basis. End market demand is strong as it expands into sports beyond baseball. The MLB relationship is very good, with a fantastic performance at the All-Star Game and Home Run Derby. Other parts of the business, like gloves, are quite strong, but we are trimming back softer areas like shoes to focus on what works best. Dennis Shem, CFO, added that the big driver remains baseball and softball, with success internationally in Japan. Q: Can you give us the net go-forward narrative on tariffs, looking past IEPA refunds, into the back half of the year and into next year?A: Dennis Shem, CFO: We have anniversaried a lot of the tariff impact. We previously discussed an $80 million annual impact, which we netted down to around $40 million through operational and supply chain work. Going forward, we expect tariffs to continue to some degree, with a slight benefit to Marucci near year-end. Mike Dennison, CEO, added that if we are through the majority of tariff changes, tariffs become fairly priced into products and markets by 2027, making them a lesser factor on a go-forward basis relative to P&L impact. Q: How much of the $20 million incremental input cost inflation is built into pricing for 2027?A: Dennis Shem, CFO: Very little would be built in now because it's so fresh. The teams are looking at it and will build their plans as we move into the back half of the year, when customer conversations will start. We will continue our operational efforts to look for cost outs. Mike Dennison, CEO, added that temporary inflation from shipping channels is transient, while commodity index increases can be stickier and easier to price through to OEM customers. Freight and fuel cost changes may require more permanent supply chain structure changes, which will be figured out between Q3 and Q4. Q: Can you update us on progress with diversification into other platforms outside of Ford, Toyota, and RAM in the AAG segment?A: Mike Dennison, CEO: Most of our diversification is coming through new partnerships with predominantly Ford and Stellantis. These collaborations have expanded beyond a few products to other vehicles, taking us into new places and relationships we didn't have before. This diversification is compelling, probably more so than adding additional OEM brands to the mix. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Fox Factory Holding (FOXF) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.4 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +131.25%. A quarter ago, it was expected that this vehicle suspension maker would post earnings of $0.09 per share when it actually produced earnings of $0.18, delivering a surprise of +100%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Fox Factory Holding, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $358.12 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.43%. This compares to year-ago revenues of $374.86 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Fox Factory Holding shares have added about 14.9% since the beginning of the year versus the S&P 500's gain of 12.8%. While Fox Factory Holding has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Fox Factory Holding was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.55 on $348.48 million in revenues for the coming quarter and $1.41 on $1.4 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, VinFast Auto Ltd. (VFS), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +25.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. VinFast Auto Ltd.'s revenues are expected to be $1.25 billion, up 88.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report VinFast Auto Ltd. (VFS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

DULUTH, Ga., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Fox Factory Holding Corp. (NASDAQ: FOXF) (“FOX” or the “Company”), a premium brand and a global leader in the design, engineering and manufacturing of performance-defining products and systems for customers worldwide, today reported financial results for the second fiscal quarter ended July 3, 2026. Second Quarter Fiscal 2026 Highlights Net sales of $358.1 million, driven by continued strength in powersports, compared to $374.9 million in the prior year Net income of $4.1 million, or $0.10 per diluted share, compared to net income of $2.7 million, or $0.07 per diluted share in the prior year Adjusted net income of $15.5 million, or $0.37 per diluted share, compared to adjusted net income of $16.6 million, or $0.40 per diluted share in the prior year Adjusted EBITDA of $45.5 million, included approximately $2 million of IEEPA tariff refunds, and exceeded the high end of the guidance range Adjusted EBITDA margin (includes 50 bps of IEEPA tariff refunds) expanded 300 basis points sequentially to 12.7%, reflecting profit optimization execution across portfolio rationalization, supply chain, and operating expense management Profit optimization initiative delivered $25+ million of gross savings in the first half; operational improvements to drive second half margin despite tariff, commodity, and freight headwinds Reduced net debt by $9.1 million since 2025 fiscal year end and improved the cash conversion cycle by approximately 12 days year over year, further strengthening the balance sheet Mike Dennison, FOX's Chief Executive Officer, commented, “Our second quarter results met or exceeded our guidance, with adjusted EBITDA margin expanding approximately 250 basis points sequentially, excluding tariff refunds. Our profit optimization actions remain on track to deliver approximately $50 million of gross cost savings this year, driven by continued execution across portfolio rationalization, supply chain, and cost discipline. A portion of what we captured in the first half was offset by higher input costs driven by geopolitical disruption and commodity inflation, including freight surcharges and fuel costs above original expectations. We are encouraged by signs of stabilization in powersports, bike, and aftermarket in general, while our upfit businesses continue to be constrained by limited availability of Ford F-150 chassis. Our team remains focused on sharpening the portfolio and becoming a more efficient organization that is positioned for growth and profitability.” Mr. Dennison continued, "We expect to see continued strength in revenue through the back half driven by PVG with overall adjusted EBITDA margin tempered by continued macro headwinds and mix shifts. Our outlook assumes Ford F-150 chassis availability remains constrained through August and begins to recover in early September.” Second Quarter 2026 Results Net sales for the second quarter of fiscal 2026 were $358.1 million, a decrease of 4.5%, as compared to net sales of $374.9 million in the second quarter of fiscal 2025. This decrease reflects a $12.9 million, or 9.4%, decrease in Specialty Sports Group (“SSG”) net sales, and a $4.6 million, or 4.0%, decrease in Aftermarket Applications Group (“AAG”) net sales, partially offset by a $0.7 million, or 0.6%, increase in Powered Vehicles Group (“PVG”) net sales. The decrease in SSG net sales from $137.2 million to $124.3 million primarily reflects original equipment manufacturer (“OEM”) order timing, and channel destocking in response to market-wide economic conditions. AAG net sales decreased from $114.2 million to $109.6 million. The Phoenix, Arizona operations divested in the first quarter contributed $5.5 million of net sales in the prior year period and none in the current period. Excluding those operations, AAG net sales increased approximately 0.9%, as growth in the segment was partially offset by limited availability of Ford F-150 chassis for our upfit businesses following the 2025 fires at Novelis’ Oswego, New York aluminum facility. The slight increase in PVG net sales from $123.5 million to $124.2 million is mainly attributed to strengthening demand in powersports, where net sales increased 22.5% compared to the prior year period, partially offset by lower net sales in our autos-related product lines. Gross margin was 30.6% for the second quarter of fiscal 2026, compared to gross margin of 31.2% in the second quarter of fiscal 2025. The decrease in gross margin was primarily driven by shifts in our product line mix and higher external input costs, including tariffs, freight, commodities and fuel, partially offset by cost savings realization. Total operating expenses were $92.2 million, or 25.7% of net sales, in the second quarter of fiscal 2026, compared to $98.5 million, or 26.3% of net sales, in the second quarter of fiscal 2025. Operating expenses decreased by $6.3 million, driven by our optimization initiative, including lower general and administrative expense and reduced discretionary spending. Adjusted operating expenses were $78.5 million, or 21.9% of net sales, in the second quarter of fiscal 2026, compared to $83.5 million, or 22.3% of net sales, in the second quarter of the prior fiscal year. Income tax expense was $2.3 million in the second quarter of fiscal 2026, compared to $2.8 million in the second quarter of fiscal 2025. In the second quarter of fiscal 2026, the difference between the Company’s effective tax rate of 36.0% and the 21% federal statutory rate was primarily attributable to unfavorable impact of discrete items in proportion to lower levels of pre-tax income. Net income attributable to FOX stockholders in the second quarter of fiscal 2026 was $4.1 million, compared to net income attributable to FOX stockholders of $2.7 million in the second quarter of the prior fiscal year. Earnings per diluted share for the second quarter of fiscal 2026 was $0.10, compared to earnings per diluted share of $0.07 for the second quarter of fiscal 2025. Adjusted net income in the second quarter of fiscal 2026 was $15.5 million, or $0.37 of adjusted earnings per diluted share, compared to adjusted net income of $16.6 million, or $0.40 of adjusted earnings per diluted share, in the same period of the prior fiscal year. Adjusted EBITDA in the second quarter of fiscal 2026 was $45.5 million and includes an approximate $2 million benefit associated with IEEPA tariff refunds, compared to $49.3 million in the second quarter of fiscal 2025. Adjusted EBITDA margin in the second quarter of fiscal 2026 was 12.7% or approximately 12.2% excluding the tariff refunds, compared to 13.1% in the second quarter of fiscal 2025. First Six Months Fiscal 2026 Results Net sales for the six months ended July 3, 2026, were $726.8 million, a decrease of 0.4% compared to the six months ended July 4, 2025. This decrease reflects a $23.4 million or 9.1% decrease in SSG net sales and a $1.8 million or 0.8% decrease in AAG net sales, offset by a $22.0 million or 9.0% increase in PVG net sales. The decrease in SSG net sales from $258.2 million to $234.8 million is mainly due to OEM order timing and channel destocking in response to market-wide economic conditions. AAG net sales decreased from $226.1 million to $224.3 million. The divested Phoenix, Arizona operations contributed $12.5 million of net sales in the prior year period and $3.7 million in the current period. Excluding those operations, AAG net sales increased approximately 3.3%, with growth limited by constrained availability of Ford F-150 chassis for our upfit businesses. The increase in PVG net sales from $245.6 million to $267.6 million is primarily due to strengthening demand in powersports. Gross margin was 29.7% in the six months ended July 3, 2026, compared to gross margin of 31.1% in the six months ended July 4, 2025. The decrease in gross margin is primarily driven by the net impact of tariffs and other external input costs, including freight, commodities and fuel, and by shifts in our product line mix, partially offset by cost savings realization. Total operating expenses were $192.6 million, or 26.5% of net sales, in the six months ended July 3, 2026, compared to $458.7 million, or 62.8% of net sales in the six months ended July 4, 2025. Operating expenses decreased by $266.1 million primarily due to goodwill impairment of $262.1 million recorded in the first six months of fiscal 2025 and our optimization initiative. Adjusted operating expenses were $164.0 million in the six months ended July 3, 2026, compared to $167.9 million in the six months ended July 4, 2025. Other expense, net for the six months ended July 3, 2026 was $9.0 million, an increase of $10.5 million from $1.5 million other income, net in the six months ended July 4, 2025. The increase in other expense, net was primarily attributable to a $10.6 million loss on divestiture of the Phoenix, Arizona AAG operations. Net loss attributable to FOX stockholders in the six months ended July 3, 2026 was $10.9 million, compared to net loss attributable to FOX stockholders of $257.0 million in the six months ended July 4, 2025. Net loss per diluted share for the six months ended July 3, 2026 was $0.26, compared to net loss per diluted share of $6.15 for the six months ended July 4, 2025. Adjusted net income in the six months ended July 3, 2026 was $22.9 million, or $0.54 of adjusted earnings per diluted share, compared to $26.4 million, or $0.63 of adjusted earnings per diluted share in the prior fiscal year. Adjusted EBITDA in the six months ended July 3, 2026 was $81.2 million and includes an approximate $2 million benefit associated with IEEPA tariff refunds, compared to $88.9 million in the six months ended July 4, 2025. Adjusted EBITDA margin was 11.2% or approximately 10.9% excluding the tariff refunds in the six months ended July 3, 2026, compared to 12.2% in the prior fiscal year. Reconciliations to non-GAAP measures are provided at the end of this press release. Balance Sheet Summary As of July 3, 2026, the Company had cash and cash equivalents of $61.3 million, compared to $58.0 million as of January 2, 2026. Inventory was $382.9 million as of July 3, 2026, compared to $388.6 million as of January 2, 2026. As of July 3, 2026, accounts receivable and accounts payable were $198.8 million and $134.9 million, respectively, compared to $190.7 million and $141.4 million, respectively, as of January 2, 2026. Prepaids and other current assets and other assets were $121.2 million as of July 3, 2026, compared to $108.4 million as of January 2, 2026. Accrued expenses were $84.4 million as of July 3, 2026, compared to $92.1 million as of January 2, 2026. Total debt was $667.7 million as of July 3, 2026, a decrease of $5.8 million, compared to $673.5 million as of January 2, 2026. Net debt, defined as total debt less cash and cash equivalents, was $606.4 million as of July 3, 2026, a decrease of $9.1 million compared to $615.5 million as of January 2, 2026. In May, the Company proactively amended its credit agreement to provide additional financial flexibility, including the expansion of the net leverage covenant to 5.0x, compared to the prior 4.5x. As of July 3, 2026, the Company’s net leverage ratio calculated under the credit agreement was 3.7x in compliance with the applicable covenant levels. The increase in cash and cash equivalents was mainly due to proceeds from the divestiture of our AAG operations in Phoenix, Arizona, including the collection of principal on the related note receivable, and proceeds from asset sales, partially offset by changes in working capital, debt repayments, capital expenditures, and debt modification costs. Inventory decreased by $5.7 million from January 2, 2026, driven by divested inventory, partially offset by an inventory build to support second half demand. Days inventory on hand improved to approximately 136 days from approximately 150 days in the prior year period. The increase in accounts receivable is due to timing of collections. The decrease in accounts payable reflects the timing of vendor payments. The increase in prepaids and other current assets is mainly attributable to receivables arising from the divestiture of our Phoenix, Arizona AAG operations. Progress on Phase 2 Profit Optimization Initiative Fox Factory continues to execute its multi-phase profit optimization strategy targeting approximately $50 million of gross realized savings in fiscal 2026. In the first six months of fiscal 2026, the Company captured more than $25 million of gross savings, a portion of which was offset by external cost increases, including tariffs, freight, commodities and fuel. The Company expects those external costs to remain elevated and has reflected an incremental amount beyond its original plan in its second half outlook. Phase 2 focuses on three strategic elements: business line rationalization to exit operations that are not accretive from a margin perspective; supply chain and materials cost productivity improvements; and reduction in operating expenses across sales, marketing, and G&A functions. The Company continues to evaluate strategic alternatives for other non-core assets to ensure alignment with profitability standards and strategic objectives. Outlook For the third quarter of fiscal 2026, the Company expects: Net sales in the range of $355 million to $380 million; and Adjusted EBITDA in the range of $46 million to $54 million. For the fiscal year 2026, the Company is raising its net sales guidance and narrowing its adjusted EBITDA guidance: Net sales in the range of $1.42 billion to $1.47 billion; and Adjusted EBITDA in the range of $176 million to $196 million. Guidance for the third quarter and the full fiscal year assumes that commodity, freight and fuel costs remain at or near current elevated levels for the balance of the year. In addition, guidance absorbs nearly $20 million of incremental input cost inflation beyond the Company’s original fiscal 2026 plan. Guidance also assumes that availability of Ford F-150 chassis for the Company’s upfit businesses remains constrained. The Company may become eligible to recover as much as $8 million of additional tariff costs previously incurred under the International Emergency Economic Powers Act (IEEPA) framework. Any such recoveries are subject to significant uncertainty regarding timing and amount, and a portion of any amounts recovered may be shared with the Company’s commercial counterparties. The Company has not included any potential recovery in its outlook and will recognize amounts only upon receipt. A quantitative reconciliation of adjusted EBITDA for the third quarter and full fiscal year 2026 is not available without unreasonable efforts because management cannot predict, with sufficient certainty, all of the elements necessary to provide such a reconciliation. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results. Conference Call & Webcast The Company will hold an investor conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number for North America listeners is (800) 445-7795, and international listeners may dial (785) 424-1699; the conference ID is FOXFQ226 or 36937226. Live audio of the conference call will be simultaneously webcast in the Investor Relations section of the Company’s website at https://investor.ridefox.com. The webcast of the teleconference will be archived and available on the Company’s website. Available Information Fox Factory Holding Corp. announces material information to the public about the Company through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, and the Investor Relations section of its website (https://investor.ridefox.com) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD. About Fox Factory Holding Corp. (NASDAQ: FOXF) Fox Factory Holding Corp. is a global leader in the design, engineering, and manufacturing of premium products that deliver championship-level performance for specialty sports and on- and off-road vehicles. Its portfolio of brands, like FOX, Marucci, Method Race Wheels, and more, are fueled by unparalleled innovation that continuously earns the trust of professional athletes and passionate enthusiasts all around the world. The Company is a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle original equipment manufacturers and offers premium baseball and softball gear and equipment. The Company also provides products in the aftermarket through its global network of retailers and distributors and through direct-to-consumer channels. FOX is a registered trademark of Fox Factory, Inc. NASDAQ Global Select Market is a registered trademark of The NASDAQ OMX Group, Inc. All rights reserved. Non-GAAP Financial Measures In addition to reporting financial measures in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”), FOX includes in this press release certain non-GAAP financial measures consisting of “adjusted operating expense,” “adjusted operating expense margin”, “adjusted net income,” “adjusted earnings per share,” “adjusted EBITDA,” and “adjusted EBITDA margin,” all of which are non-GAAP financial measures. FOX defines adjusted operating expense as operating expense adjusted for amortization of purchased intangibles, goodwill impairment, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, and certain strategic transformation costs. FOX defines adjusted operating expense margin as adjusted operating expense divided by net sales. FOX defines adjusted net income as net income (loss) attributable to FOX stockholders adjusted for amortization of purchased intangibles, goodwill impairment, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, loss on divestiture, and strategic transformation costs, all net of applicable tax. Adjusted earnings per share is defined as adjusted net income divided by the weighted average number of basic or diluted shares of common stock outstanding during the period. FOX defines adjusted EBITDA as net income (loss) adjusted for interest expense, net other expense, income taxes or tax benefits, amortization of purchased intangibles, goodwill impairment, depreciation, stock-based compensation, litigation and settlement related expenses, organizational restructuring expenses, acquisition and integration-related expenses, loss on divestiture, and strategic transformation costs that are more fully described in the tables included at the end of this press release. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales. These adjustments are more fully described in the tables included at the end of this press release. FOX includes these non-GAAP financial measures to provide investors with additional insight on the Company’s operating performance and trends, as well as to supplement their understanding of the results of the Company’s core operations. In particular, the exclusion of certain items in calculating the non-GAAP financial measures consisting of adjusted operating expense, adjusted net income and adjusted EBITDA (and accordingly, adjusted operating expense margin, adjusted earnings per diluted share and adjusted EBITDA margin) can provide a useful measure for period-to-period comparisons of the Company’s core business. These non-GAAP financial measures have limitations as analytical tools, including the fact that such non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies because other companies may calculate adjusted operating expense, adjusted operating expense margin, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin differently than FOX does. For more information regarding these non-GAAP financial measures, see the tables included at the end of this press release. FOX FACTORY HOLDING CORP. NET INCOME (LOSS) TO ADJUSTED NET INCOME RECONCILIATIONAND CALCULATION OF ADJUSTED EARNINGS PER SHARE(in thousands, except per share data) (unaudited) The following tables provide a reconciliation of net income (loss) attributable to FOX stockholders, the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted net income (a non-GAAP measure), and the calculation of adjusted earnings per share (a non-GAAP measure) for the three and six months ended July 3, 2026 and July 4, 2025. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results. (1) Represents expenses associated with various restructuring initiatives intended to improve operational efficiency, realign resources, and support the Company’s long-term strategic objectives, including employee severance, relocation expenses, and consulting and advisory fees. (2) Represents third-party consulting, advisory and other direct costs incurred in connection with the Company’s multi-phase profit optimization and transformation program and its review of strategic alternatives for non-core assets. (3) Represents various acquisition-related costs and expenses incurred to acquire and integrate acquired entities into the Company’s operations and the impact of the finished goods inventory and property, plant and equipment valuation adjustments recorded in connection with the purchase of acquired assets. (4) Tax impacts on non-GAAP adjustments are calculated using the Company’s normalized effective tax rate, except for goodwill impairment charges and divestitures, which are adjusted based on their specific tax attributes. For these items, the entire tax expense associated with the divestiture and the entire tax benefit associated with goodwill impairment were added back. FOX FACTORY HOLDING CORP. NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION ANDCALCULATION OF NET INCOME (LOSS) MARGIN AND ADJUSTED EBITDA MARGIN (in thousands, except percentages) (unaudited) The following tables provide a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted EBITDA (a non-GAAP measure), and a reconciliation of net income (loss) margin to adjusted EBITDA margin (a non-GAAP measure) for the three and six months ended July 3, 2026 and July 4, 2025. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results. (1) Depreciation excludes amortization for purchase accounting property, plant and equipment fair value adjustment, and accelerated depreciation related to organizational restructuring initiatives. (2) Represents expenses associated with various restructuring initiatives intended to improve operational efficiency, realign resources, and support the Company’s long-term strategic objectives, including employee severance, relocation expenses, and consulting and advisory fees. (3) Represents third-party consulting, advisory and other direct costs incurred in connection with the Company’s multi-phase profit optimization and transformation program and its review of strategic alternatives for non-core assets. (4) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations and the impact of the finished goods inventory and property, plant and equipment valuation adjustments recorded in connection with the purchase of acquired assets. FOX FACTORY HOLDING CORP. OPERATING EXPENSE TO ADJUSTED OPERATING EXPENSE RECONCILIATION ANDCALCULATION OF ADJUSTED OPERATING EXPENSE MARGIN(in thousands, except percentages) (unaudited) The following tables provide a reconciliation of operating expense to adjusted operating expense (a non-GAAP measure) and the calculations of operating expense margin and adjusted operating expense margin (a non-GAAP measure), for the three and six months ended July 3, 2026 and July 4, 2025. These non-GAAP financial measures are provided in addition to, and not as an alternative for, the Company’s reported GAAP results. (1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations, excluding amortization for purchase accounting inventory fair value adjustment that was classified as cost of sales. (2) Represents expenses associated with various restructuring initiatives. (3) Represents third-party consulting, advisory and other direct costs incurred in connection with the Company’s multi-phase profit optimization and transformation program and its review of strategic alternatives for non-core assets. Cautionary Note Regarding Forward-Looking Statements Certain statements in this press release including earnings guidance may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends that all such statements be subject to the “safe-harbor” provisions contained in those sections. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “might,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “can,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “likely,” “potential”, “remain” or “continue” or the negative of these words or other similar terms or expressions that concern the Company’s expectations, strategy, plans or intentions. Such forward-looking statements include, but are not limited to, statements with regard to expectations related to the future performance of FOX; the Company’s expected demand for its products; the Company’s execution on its organizational restructuring initiatives and strategy to improve operating efficiencies, which may include divestitures, sales, or related transactions involving one or more of the Company’s businesses or assets and other actions related to the Company’s strategic review of its portfolio; the Company’s expectation regarding its operating results and future growth prospects; the Company’s expected future sales and future adjusted earnings per diluted share; and any other statements in this press release that are not of a historical nature. Many important factors may cause the Company’s actual results, events or circumstances to differ materially from those discussed in any such forward-looking statements, including but not limited to: the Company’s decision and ability to market and execute potential strategic transactions, which depend on, among other factors, third-party interest, valuation considerations and regulatory requirements; the Company’s ability to maintain its suppliers for materials, component parts and product without significant supply chain disruptions; the Company’s ability to improve operating and supply chain efficiencies; the Company’s ability to enforce its intellectual property rights; the Company’s future financial performance, including its sales, cost of sales, gross profit or gross margin, operating expenses, ability to generate positive cash flow, ability to maintain profitability, and ability to remain in compliance with financial covenants; the Company’s ability to monitor the effects of new technological applications, such as artificial intelligence; the Company’s ability to protect against cybersecurity incidents and disruptions or failures of our information technology systems; the Company’s ability to adapt its business model to mitigate the impact of certain changes in tax laws, tariffs, and international trade policies, including regulations or orders related to the import and export of industry products; changes in the relative proportion of profit earned in the numerous jurisdictions in which the Company does business and in tax legislation, case law and other authoritative guidance in those jurisdictions; factors which impact the calculation of the weighted average number of diluted shares of common stock outstanding, including the market price of the Company’s common stock, grants of equity-based awards and the vesting schedules of equity-based awards; the Company’s ability to develop new and innovative products in its current end-markets and to leverage its technologies and brand to expand into new categories and end-markets; the spread of highly infectious or contagious diseases or public health issues causing disruptions in the U.S. and global economy and disrupting the business activities and operations of the Company’s customers, business and operations; the Company’s ability to increase its aftermarket penetration; the Company’s exposure to currency exchange rate fluctuations; the loss of key customers; our ability to accurately forecast demand for our products; strategic transformation costs; legal and regulatory developments, including the outcome of pending litigation or regulatory or other governmental inquiries, and the impact of changing emissions and other regulations in the various jurisdictions in which our products are produced, used, and/or sold; the cost of compliance with, or liabilities related to, environmental or other governmental regulations or changes in governmental or industry regulatory standards; the possibility that the Company may not be able to accelerate its international growth; the Company’s ability to maintain its premium brand image and high-performance products; the Company’s ability to maintain relationships with the professional athletes and race teams that it sponsors; the possibility that the Company may not be able to selectively add additional dealers and distributors in certain geographic markets; the overall growth of the markets in which the Company competes; the Company’s expectations regarding consumer preferences and its ability to respond to changes in consumer preferences and effectively compete against competitors; changes in demand for performance-defining products as well as the Company’s other products; the Company’s loss of key personnel, management and skilled engineers; the Company’s ability to successfully identify, evaluate and manage potential acquisitions and to benefit from such acquisitions; the Company’s ability to complete any acquisition and/or incorporate any acquired assets into its business; product recalls and product liability claims; the impact of tension in China-Taiwan relations, the war in Iran, or similar events on the Company’s business, operations or supply chain; future economic or market conditions, including the impact of inflation or the U.S. Federal Reserve’s interest rate changes in response thereto; changes in commodity, freight, and tariff costs (including tariff relief or our ability to mitigate tariffs, particularly in light of the policies of the current presidential administration and retaliatory actions in response thereto); our ability to mitigate increasing input costs through pricing or other measures; and the other risks and uncertainties described in “Risk Factors” contained in its Annual Report on Form 10-K for the fiscal year ended January 2, 2026, as filed with the Securities and Exchange Commission on February 27, 2026, or Quarterly Reports on Form 10-Q or otherwise described in the Company’s other filings with the Securities and Exchange Commission. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. CONTACT:ICRJeff [email protected]

The market expects Fox Factory Holding (FOXF) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 6. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This vehicle suspension maker is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of -60%. Revenues are expected to be $353.07 million, down 5.8% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Fox Factory Holding, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +6.25%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Fox Factory Holding will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Fox Factory Holding would post earnings of $0.09 per share when it actually produced earnings of $0.18, delivering a surprise of +100.00%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Fox Factory Holding doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Automotive - Domestic industry, Lucid Group (LCID), is soon expected to post loss of $3.12 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -11.4%. This quarter's revenue is expected to be $323.31 million, up 24.6% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Lucid Group has been revised 11.8% down to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate. When combined with a Zacks Rank of #4 (Sell), this Earnings ESP makes it difficult to conclusively predict that Lucid Group will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

DULUTH, Ga., July 16, 2026 (GLOBE NEWSWIRE) -- Fox Factory Holding Corp. (Nasdaq: FOXF) (the “Company”), a premium brand and a global leader in the design, engineering and manufacturing of performance-defining products and systems for customers worldwide, will announce results for the second quarter ended July 3, 2026, on Thursday, August 6, 2026, after the market close. The Company will host a conference call with members of the executive management team to discuss these results with additional comments and details. The conference call is scheduled to begin at 4:30 p.m. ET on Thursday, August 6, 2026. The call will be broadcast live over the Internet and hosted at the Investor Relations section of the Company’s website at www.ridefox.com and will be archived online for one year. In addition, North American listeners may dial (800) 445-7795, and international listeners may dial (785) 424-1699; the conference ID is FOXFQ226 or 36937226. About Fox Factory Holding Corp. (Nasdaq: FOXF) Fox Factory Holding Corp. is a global leader in the design, engineering, and manufacturing of premium products that deliver championship-level performance for specialty sports and on- and off-road vehicles. Its portfolio of brands, like FOX, Marucci, Method Race Wheels, and more, is fueled by unparalleled innovation that continuously earns the trust of professional athletes and passionate enthusiasts all around the world. The Company is a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle original equipment manufacturers and offers premium baseball and softball gear and equipment. The Company also provides products in the aftermarket through its global network of retailers and distributors and through direct-to-consumer channels. FOX is a registered trademark of Fox Factory, Inc. NASDAQ Global Select Market is a registered trademark of Nasdaq Inc. All rights reserved. Available Information Fox Factory Holding Corp. announces material information to the public about Fox Factory Holding Corp. through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, and the investor relations section of its website (https://investor.ridefox.com/investor-relations/default.aspx) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD. Contact Jeff SonnekICR, [email protected]

DULUTH, Ga., May 07, 2026 (GLOBE NEWSWIRE) -- Fox Factory Holding Corp. (NASDAQ: FOXF) (“FOX” or the “Company”), a premium brand and a global leader in the design, engineering and manufacturing of performance-defining products and systems for customers worldwide, today reported financial results for the first fiscal quarter ended April 3, 2026. First Quarter Fiscal 2026 Highlights Net sales increased 3.9% year-over-year to $368.7 million, reaching the high end of guidance Net loss of $15.0 million, or $0.36 per diluted share, included charges associated with divestitures in its AAG segment — compared to net loss of $259.7 million, or $6.23 per diluted share, in the prior year quarter which included goodwill impairment Adjusted earnings per diluted share of $0.18, compared to $0.23 in the prior year quarter Adjusted EBITDA of $35.7 million exceeded the high end of our guidance range Reaffirming approximately $50 million of fiscal 2026 cost savings; Phase 2 actions on schedule Completed the divestiture of the Phoenix, Arizona AAG operations — including the Shock Therapy, Upfit UTV, and Geiser businesses — with proceeds dedicated to debt reduction Mike Dennison, FOX's Chief Executive Officer, commented, “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.” Mr. Dennison continued, “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.” First Quarter 2026 Results Net sales for the first quarter of fiscal 2026 were $368.7 million, an increase of 3.9%, as compared to net sales of $355.0 million in the first quarter of fiscal 2025. This increase reflects a $21.3 million or 17.4% increase in Powered Vehicles Group (“PVG”) net sales, and a $2.9 million or 2.6% increase in Aftermarket Applications Group (“AAG”) net sales, partially offset by a $10.5 million or 8.7% decrease in Specialty Sports Group (“SSG”) net sales. The increase in PVG net sales from $122.1 million to $143.4 million is mainly attributed to strengthening demand in powersports and continued momentum in the automotive aftermarket. The increase in AAG net sales from $111.9 million to $114.8 million is driven by improved performance in our upfitting product lines and stable aftermarket product sales. The decrease in SSG net sales from $121.0 million to $110.5 million primarily reflects distributor and dealer inventory destocking and a difficult prior-year comparison given the industry’s first half 2025 order pull-forward. Gross margin was 28.9% for the first quarter of fiscal 2026, compared to gross margin of 30.9% in the first quarter of fiscal 2025. The decrease in gross margin was primarily driven by the net impact of tariffs and shifts in our product line mix. Total operating expenses were $100.4 million, or 27.2% of net sales, for the first quarter of fiscal 2026, compared to $360.3 million, or 101.5% of net sales in the first quarter of fiscal 2025. Operating expenses decreased by $259.8 million, driven primarily by a $262.1 million goodwill impairment recorded in the first quarter of fiscal 2025. Adjusted operating expenses were $85.5 million, or 23.2% of net sales, in the first quarter of fiscal 2026, compared to $84.4 million, or 23.8% of net sales, in the first quarter of the prior fiscal year. Other expense, net for the first quarter of fiscal 2026 was $9.6 million, an increase of $9.8 million from $0.1 million other income, net in the first quarter of fiscal 2025. The increase in other expense, net was primarily attributable to a $10.0 million loss on divestiture of the Phoenix, Arizona AAG operations. Income tax benefit was $0.6 million in the first quarter of fiscal 2026, compared to $3.6 million in the first quarter of fiscal 2025. For the first quarter of fiscal 2026, the difference between the Company’s effective tax rate of 3.9% and the 21% federal statutory rate was primarily attributable to lower pre‑tax earnings for the quarter and the tax effects recognized in connection with the sale of our Phoenix, Arizona AAG operations, including Shock Therapy, Upfit UTV, and Geiser businesses. Net loss attributable to FOX stockholders in the first quarter of fiscal 2026 was $15.0 million, compared to net loss attributable to FOX stockholders of $259.7 million in the first quarter of the prior fiscal year. Net loss per diluted share for the first quarter of fiscal 2026 was $0.36, compared to net loss per diluted share of $6.23 for the first quarter of fiscal 2025; the prior year quarter included a goodwill impairment charge of $262.1 million. Adjusted net income in the first quarter of fiscal 2026 was $7.4 million, or $0.18 of adjusted earnings per diluted share, compared to adjusted net income of $9.8 million, or $0.23 of adjusted earnings per diluted share, in the same period of the prior fiscal year. Adjusted EBITDA in the first quarter of fiscal 2026 was $35.7 million, exceeding the high end of our guidance range, compared to $39.6 million in the first quarter of fiscal 2025. Adjusted EBITDA margin in the first quarter of fiscal 2026 was 9.7%, compared to 11.2% in the first quarter of fiscal 2025. Balance Sheet Summary As of April 3, 2026, the Company had cash and cash equivalents of $53.9 million, compared to $58.0 million as of January 2, 2026. Inventory was $375.1 million as of April 3, 2026, compared to $388.6 million as of January 2, 2026. As of April 3, 2026, accounts receivable and accounts payable were $209.1 million and $143.4 million, respectively, compared to $190.7 million and $141.4 million, respectively, as of January 2, 2026. Prepaids and other current assets were $126.3 million as of April 3, 2026, compared to $108.4 million as of January 2, 2026. Goodwill was $83.6 million as of April 3, 2026, compared to $83.6 million as of January 2, 2026. Total debt was $688.2 million as of April 3, 2026 compared to $673.5 million as of January 2, 2026. In May, the Company proactively amended its credit agreement to provide additional financial flexibility, including the expansion of the net leverage covenant to 5.0x, compared to the prior 4.5x. At quarter-end, the Company’s net leverage covenant was comfortably within the prior threshold. The decrease in cash and cash equivalents was mainly due to changes in working capital, debt payments, and capital expenditures, partially offset by proceeds from our revolver. Inventory decreased by $13.5 million, driven by divested inventory. The increase in accounts receivable is due to higher sales in the fiscal quarter ended April 3, 2026 compared to the fiscal quarter ended January 2, 2026 and timing of collections. The increase in accounts payable reflects the timing of vendor payments. The increase in prepaids and other assets is mainly attributable to receivables arising from the divestiture of our Phoenix, Arizona AAG operations. Progress on Phase 2 Profit Optimization Initiative Fox Factory continues to execute against the multi-phase profit optimization strategy first outlined in its fourth quarter fiscal 2025 earnings release, which targets approximately $50 million of realized savings in fiscal 2026. This includes approximately $10 million of carryover benefit from the Phase 1 program completed in fiscal 2025 and approximately $40 million of incremental savings from Phase 2 actions initiated earlier this year. Phase 2 comprises three strategic elements: business line rationalization to exit operations that are not accretive from a margin perspective; supply chain and materials cost productivity through improved facility utilization and supplier actions; and a reduction in operating expenses across sales, marketing, and G&A functions. The Company's first quarter results reflect early contribution from these initiatives. As part of this broader effort, the Company completed the divestiture of its Phoenix, Arizona AAG operations during the first quarter — including the Shock Therapy, Upfit UTV, and Geiser businesses — with proceeds dedicated to debt reduction. The Company continues to evaluate strategic alternatives for its other non-core assets to ensure the portfolio aligns with the Company's profitability standards and strategic objectives. Outlook For the second quarter of fiscal 2026, the Company expects: Net sales in the range of of $343 million to $365 million Adjusted EBITDA in the range of $32 million to $40 million For the fiscal year 2026, the Company is reaffirming its previously issued guidance: Net sales in the range of $1.328 billion to $1.416 billion Adjusted EBITDA in the range of $174 million to $203 million A quantitative reconciliation of adjusted EBITDA for the second quarter and full fiscal year 2026 is not available without unreasonable efforts because management cannot predict, with sufficient certainty, all of the elements necessary to provide such a reconciliation. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results. The Company has visibility to potential recoveries of certain tariff costs previously incurred under the International Emergency Economic Powers Act (IEEPA) framework. Any such recoveries are subject to significant uncertainty regarding timing, amount, and allocation among the Company and its commercial counterparties. The Company has not included any potential recovery in its outlook and will recognize amounts only upon receipt. Conference Call & Webcast The Company will hold an investor conference call today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call dial-in number for North America listeners is (800) 445-7795, and international listeners may dial (785) 424-1699; the conference ID is FOXFQ126 or 36937126. Live audio of the conference call will be simultaneously webcast in the Investor Relations section of the Company’s website at https://investor.ridefox.com. The webcast of the teleconference will be archived and available on the Company’s website. Available Information Fox Factory Holding Corp. announces material information to the public about the Company through a variety of means, including filings with the Securities and Exchange Commission, press releases, public conference calls, webcasts, and the Investor Relations section of its website (https://investor.ridefox.com) in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD. About Fox Factory Holding Corp. (NASDAQ: FOXF) Fox Factory Holding Corp. is a global leader in the design, engineering, and manufacturing of premium products that deliver championship-level performance for specialty sports and on- and off-road vehicles. Its portfolio of brands, like FOX, Marucci, Method Race Wheels, and more, are fueled by unparalleled innovation that continuously earns the trust of professional athletes and passionate enthusiasts all around the world. The Company is a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle original equipment manufacturers and offers premium baseball and softball gear and equipment. The Company also provides products in the aftermarket through its global network of retailers and distributors and through direct-to-consumer channels. FOX is a registered trademark of Fox Factory, Inc. NASDAQ Global Select Market is a registered trademark of The NASDAQ OMX Group, Inc. All rights reserved. Non-GAAP Financial Measures In addition to reporting financial measures in accordance with generally accepted accounting principles (“GAAP”) in the United States (“U.S.”), FOX includes in this press release certain non-GAAP financial measures consisting of “adjusted gross profit,” “adjusted gross margin,” “adjusted operating expense,” “adjusted operating expense margin”, “adjusted net income,” “adjusted earnings per share,” “adjusted EBITDA,” and “adjusted EBITDA margin,” all of which are non-GAAP financial measures. FOX defines adjusted gross profit as gross profit adjusted for the amortization of acquired inventory valuation markups and cost of goods sold associated with organizational restructuring. Adjusted gross margin is defined as adjusted gross profit divided by net sales. FOX defines adjusted operating expense as operating expense adjusted for amortization of purchased intangibles, goodwill impairment, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, and certain strategic transformation costs. FOX defines adjusted operating expense margin as adjusted operating expense divided by net sales. FOX defines adjusted net income as net loss attributable to FOX stockholders adjusted for amortization of purchased intangibles, goodwill impairment, litigation and settlement-related expenses, acquisition and integration-related expenses, organizational restructuring expenses, loss on divestiture, and strategic transformation costs, all net of applicable tax. Adjusted earnings per share is defined as adjusted net income divided by the weighted average number of basic or diluted shares of common stock outstanding during the period. FOX defines adjusted EBITDA as net loss adjusted for interest expense, net other expense, income taxes or tax benefits, amortization of purchased intangibles, goodwill impairment, depreciation, stock-based compensation, litigation and settlement related expenses, organizational restructuring expenses, acquisition and integration-related expenses, loss on divestiture, and strategic transformation costs that are more fully described in the tables included at the end of this press release. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales. These adjustments are more fully described in the tables included at the end of this press release. FOX includes these non-GAAP financial measures to provide investors with additional insight on the Company’s operating performance and trends, as well as to supplement their understanding of the results of the Company’s core operations. In particular, the exclusion of certain items in calculating the non-GAAP financial measures consisting of adjusted gross profit, adjusted operating expense, adjusted net income and adjusted EBITDA (and accordingly, adjusted gross margin, adjusted operating expense margin, adjusted earnings per diluted share and adjusted EBITDA margin) can provide a useful measure for period-to-period comparisons of the Company’s core business. These non-GAAP financial measures have limitations as analytical tools, including the fact that such non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies because other companies may calculate adjusted gross profit, adjusted gross margin, adjusted operating expense, adjusted operating expense margin, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin differently than FOX does. For more information regarding these non-GAAP financial measures, see the tables included at the end of this press release. The following tables provide a reconciliation of net (loss) income attributable to FOX stockholders, the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted net income (a non-GAAP measure), and the calculation of adjusted earnings per share (a non-GAAP measure) for the three months ended April 3, 2026 and April 4, 2025. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results. (1) Represents expenses associated with various restructuring initiatives intended to improve operational efficiency, realign resources, and support the Company’s long-term strategic objectives, including employee severance, relocation expenses, and consulting and advisory fees. (2) Represents costs associated with various strategic initiatives. (3) Represents various acquisition-related costs and expenses incurred to acquire and integrate acquired entities into the Company’s operations and the impact of the finished goods inventory and property, plant and equipment valuation adjustments recorded in connection with the purchase of acquired assets. (4) Tax impacts on non-GAAP adjustments are calculated using the Company’s normalized effective tax rate, except for goodwill impairment charges and divestitures, which are adjusted based on their specific tax attributes. For these items, the entire tax expense associated with the divestiture and the entire tax benefit associated with goodwill impairment were added back. The following tables provide a reconciliation of net (loss) income, the most directly comparable financial measure calculated and presented in accordance with GAAP, to adjusted EBITDA (a non-GAAP measure), and a reconciliation of net (loss) income margin to adjusted EBITDA margin (a non-GAAP measure) for the three months ended April 3, 2026 and April 4, 2025. These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results. (1) Depreciation excludes amortization for purchase accounting property, plant and equipment fair value adjustment, and accelerated depreciation related to organizational restructuring initiatives. (2) Represents expenses associated with various restructuring initiatives intended to improve operational efficiency, realign resources, and support the Company’s long-term strategic objectives, including employee severance, relocation expenses, and consulting and advisory fees. (3) Represents costs associated with various strategic initiatives. (4) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations and the impact of the finished goods inventory and property, plant and equipment valuation adjustments recorded in connection with the purchase of acquired assets. The following table provides a reconciliation of gross profit to adjusted gross profit (a non-GAAP measure) for the three months ended April 3, 2026 and April 4, 2025, and the calculation of gross margin and adjusted gross margin (a non-GAAP measure). These non-GAAP financial measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results. The following tables provide a reconciliation of operating expense to adjusted operating expense (a non-GAAP measure) and the calculations of operating expense margin and adjusted operating expense margin (a non-GAAP measure), for the three months ended April 3, 2026 and April 4, 2025. These non-GAAP financial measures are provided in addition to, and not as an alternative for, the Company’s reported GAAP results. (1) Represents various acquisition-related costs and expenses incurred to integrate acquired entities into the Company’s operations, excluding amortization for purchase accounting inventory fair value adjustment that was classified as cost of sales. (2) Represents expenses associated with various restructuring initiatives. (3) Represents costs associated with various strategic initiatives. Cautionary Note Regarding Forward-Looking Statements Certain statements in this press release including earnings guidance may be deemed to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends that all such statements be subject to the “safe-harbor” provisions contained in those sections. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “might,” “will,” “would,” “should,” “expect,” “plan,” “anticipate,” “could,” “can,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “likely,” “potential”, “remain” or “continue” or the negative of these words or other similar terms or expressions that concern the Company’s expectations, strategy, plans or intentions. Such forward-looking statements include, but are not limited to, statements with regard to expectations related to the future performance of FOX; the Company’s expected demand for its products; the Company’s execution on its organizational restructuring initiatives and strategy to improve operating efficiencies, which may include divestitures, sales, or related transactions involving one or more of the Company’s businesses or assets and other actions related to the Company’s strategic review of its portfolio; the Company’s expectation regarding its operating results and future growth prospects; the Company’s expected future sales and future adjusted earnings per diluted share; and any other statements in this press release that are not of a historical nature. Many important factors may cause the Company’s actual results, events or circumstances to differ materially from those discussed in any such forward-looking statements, including but not limited to: the Company’s decision and ability to market and execute potential strategic transactions, which depend on, among other factors, third-party interest, valuation considerations and regulatory requirements; the Company’s ability to maintain its suppliers for materials, component parts and product without significant supply chain disruptions; the Company’s ability to improve operating and supply chain efficiencies; the Company’s ability to enforce its intellectual property rights; the Company’s future financial performance, including its sales, cost of sales, gross profit or gross margin, operating expenses, ability to generate positive cash flow, ability to maintain profitability, and ability to remain in compliance with financial covenants; the Company’s ability to monitor the effects of new technological applications, such as artificial intelligence; the Company’s ability to adapt its business model to mitigate the impact of certain changes in tax laws, tariffs, and international trade policies, including regulations or orders related to the import and export of industry products; changes in the relative proportion of profit earned in the numerous jurisdictions in which the Company does business and in tax legislation, case law and other authoritative guidance in those jurisdictions; factors which impact the calculation of the weighted average number of diluted shares of common stock outstanding, including the market price of the Company’s common stock, grants of equity-based awards and the vesting schedules of equity-based awards; the Company’s ability to develop new and innovative products in its current end-markets and to leverage its technologies and brand to expand into new categories and end-markets; the spread of highly infectious or contagious diseases or public health issues causing disruptions in the U.S. and global economy and disrupting the business activities and operations of the Company’s customers, business and operations; the Company’s ability to increase its aftermarket penetration; the Company’s exposure to currency exchange rate fluctuations; the loss of key customers; our ability to accurately forecast demand for our products; strategic transformation costs; legal and regulatory developments, including the outcome of pending litigation or regulatory or other governmental inquiries, and the impact of changing emissions and other regulations in the various jurisdictions in which our products are produced, used, and/or sold; the cost of compliance with, or liabilities related to, environmental or other governmental regulations or changes in governmental or industry regulatory standards; the possibility that the Company may not be able to accelerate its international growth; the Company’s ability to maintain its premium brand image and high-performance products; the Company’s ability to maintain relationships with the professional athletes and race teams that it sponsors; the possibility that the Company may not be able to selectively add additional dealers and distributors in certain geographic markets; the overall growth of the markets in which the Company competes; the Company’s expectations regarding consumer preferences and its ability to respond to changes in consumer preferences and effectively compete against competitors; changes in demand for performance-defining products as well as the Company’s other products; the Company’s loss of key personnel, management and skilled engineers; the Company’s ability to successfully identify, evaluate and manage potential acquisitions and to benefit from such acquisitions; the Company’s ability to complete any acquisition and/or incorporate any acquired assets into its business; product recalls and product liability claims; the impact of tension in China-Taiwan relations, the war in Iran, or similar events on the Company’s business, operations or supply chain; future economic or market conditions, including the impact of inflation or the U.S. Federal Reserve’s interest rate changes in response thereto; changes in commodity, freight, and tariff costs (including tariff relief or our ability to mitigate tariffs, particularly in light of the policies of the current presidential administration and retaliatory actions in response thereto); our ability to mitigate increasing input costs through pricing or other measures; and the other risks and uncertainties described in “Risk Factors” contained in its Annual Report on Form 10-K for the fiscal year ended January 2, 2026 and filed with the Securities and Exchange Commission on February 27, 2026, or Quarterly Reports on Form 10-Q or otherwise described in the Company’s other filings with the Securities and Exchange Commission. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. CONTACT: ICR Jeff Sonnek 646-277-1263 [email protected]

Image source: The Motley Fool. Thursday, May 7, 2026 at 4:30 p.m. ET Chief Executive Officer — Michael Dennison Chief Financial Officer — Dennis Schemm Chief Legal Officer — Toby D. Merchant Operator: Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to Fox Factory Holding Corp.'s First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I would now like to turn the conference over to Mr. Toby Merchant, Chief Legal Officer at Fox Factory Holding Corp. Please go ahead, sir. Toby D. Merchant,: Thank you. Good afternoon, and welcome to Fox Factory's First Quarter 2026 Earnings Conference Call. I'm joined today by Mike Dennison, Chief Executive Officer; and Dennis Schemm, Chief Financial Officer. First, Mike will provide business updates, and then Dennis will review the quarterly results and outlook. Mike will then provide some closing remarks before we open up the call for your questions. By now, everyone should have access to the earnings release, which went out earlier this afternoon. If you have not had a chance to review the release, it's available on the Investor Relations portion of our website at investor.ridefox.com. Please note that, throughout this call, we will refer to Fox Factory as Fox or the company. Before we begin, I would like to remind everyone that the prepared remarks contain forward-looking statements within the meaning of federal securities laws, and management may make additional forward-looking statements in response to your questions. Such statements involve a number of known and unknown risks and uncertainties, many of which are outside of the company's control and can cause future results, performance or achievements to differ materially from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors and risks that could cause or contribute to such differences are detailed in the company's quarterly reports on Form 10-Q and in the company's latest annual report on Form 10-K, each filed with the Securities and Exchange Commission. Investors should not place undue reliance on the company's forward-looking statements and except as required by law, the company undertakes no obligation to update any forward-looking or other statements herein, whether as a result of new information, future events or otherwise. In addition, where appropriate in today's prepared remarks and within our earnings release, we will refer to certain non-GAAP financial measures to evaluate our business, including adjusted gross profit, adjusted gross margin, adjusted operating expenses, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA and adjusted EBITDA margin. as we believe these are useful metrics that allow investors to better understand and evaluate the company's core operating performance and trends. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are included in today's earnings release, which has also been posted on our website. And with that, it is my pleasure to turn the call over to our CEO, Mike Dennison. Michael Dennison: Thanks, Toby, and thanks to everyone for joining today's call. We delivered first quarter revenue of $368.7 million, which was at the high end of our guidance range and adjusted EBITDA of $35.7 million, exceeding the high end of our guidance range. More importantly, the early proof points for the plan we outlined in February are landing as expected. Phase 1 carryover is flowing through, Phase 2 is on schedule, and we closed the divestiture of our Phoenix, Arizona operations in the quarter as planned. The operating environment remains broadly consistent with the demand backdrop we built our 2026 outlook around. As I said on our last call, we are not counting on end market recovery or tariff relief in 2026. We are focused on what we control, taking cost out, tightening the portfolio and building the foundation for operating leverage when growth returns. On cost, we are confident in delivering approximately $50 million of savings in 2026, $10 million of Phase 1 carryover and approximately $40 million of Phase 2 actions identified and in execution. The Board's Transformation committee is engaged with us and the work is on track. On the portfolio, the Phoenix divestiture, including the Upfit, UTV, Geiser and Shock Therapy businesses closed during the first quarter, consistent with the expectations we set on our last call and proceeds are dedicated to debt reduction. As I have said before, we will continue to evaluate every business we own against 3 criteria: alignment with our brands, synergy with our core competencies and an ability to deliver accretive margins and durable cash flows. And where a business does not meet these thresholds, we will act. With that, let me walk through our segments. PVG delivered net sales of $143.4 million in the first quarter, an increase of 17.4% year-over-year. This was a strong start to the year for this segment. Some of this growth reflects timing dynamics I'll cover next, though the underlying performance is consistent with the framework we laid out for the year. On the automotive side, our premium truck OE business performance was balanced by the timing of shipments against continued supply chain and production issues within our automotive OEMs. Keep in mind that, while demand continues to be more resilient at the high end of the market, the broader consumer is exercising restraint given ongoing macro pressures, including the unforeseen rise in gas prices. Our powersports business produced a solid quarter as OEM partners have largely overcome channel inventory imbalances. Our broad portfolio of customers and products should help insulate us from the OEM and tariff issues still impacting this market. We remain cautious in our near-term outlook for this business given continuing pressure on consumer discretionary spending. That said, powersports is structurally healthier than it was a year ago, and we believe we are well positioned as growth accelerates. AAG delivered net sales of $114.8 million, an increase of 2.6% year-over-year. Growth came from our upfitting product lines and solid aftermarket demand, partially offset by the Phoenix operations that exited the segment during the quarter. In PVD, our portfolio continues to evolve across OEM relationships and dealership expansion. As you recall, in the second half of last year, we announced a new program with an OEM partner to execute their performance upgrades. In Q1, we announced a similar strategic relationship with another major automotive OEM. This partnership model where our innovation tied to OEM-driven marketing and sales is a differentiated and defendable go-to-market strategy, which should drive long-term growth in upfitted trucks. We started shipping meaningful volume towards the end of Q1 as our supply chain normalized, and we are making good progress on that program in Q2. These are the kinds of programs that give us more predictable, sustainable revenue over time. We have significant operational supply chain, product, process and capacity work to be done in PVD. We have made strides in people and structure in Q1, which should enable many of the other work streams to drive top and bottom line improvements towards the end of this year. One final note. In the actions we have taken so far, we have reorganized sales forces internally and externally and refocused our efforts on dealership expansion, which is a critical long-term growth driver. In the last 60 days, we have added over 135 new dealers, and we are averaging over 60 new dealers a month as we go forward. Our aftermarket components business held up well in the quarter. Categories like custom wheelhouse, RideTech and Sport Truck continued to show consistent demand and delivered on or above expectations in the quarter, which is a proof point for resilient aftermarket demand where higher interest rates and elevated gas prices are weighing on consumers more broadly. When consumers can't afford to buy new trucks, they tend to invest in the trucks they already have, and this value-seeking behavior plays to our portfolio. Our product is hitting the right consumer at the right price point, and our channel strategy is helping us stay visible to this consumer as they are making purchase decisions. AAG margins were down year-over-year due to a combination of factors. The biggest drivers are volume, mix and operational challenges in upfit, as mentioned earlier. The volume and mix issue is directly related to the industry-wide aluminum supply disruption affecting Ford's production, which has constrained availability of the F-150 Lariat and XLT platforms, a predominant upfit chassis across several of our product lines. The Q1 and Q2 volume tied to that disruption is not expected to be recovered in 2026. However, we do believe back half volumes remain intact. The impact extends into our second quarter and is reflected in the outlook Dennis will walk through. Margins were also pressured by the delayed deliveries of finished vehicles and OEM outfit program I just mentioned, where shipments were weighted toward the end of Q1. And finally, by the dilutive impact of 2 months of Phoenix operations within the segment before the divestiture closed. SSG delivered net sales of $110.5 million, a decrease of 8.7% year-over-year. This performance is consistent with what we flagged in our last call. We knew Q1 would be a tough comp for SSG, particularly in bike, given the strength we saw in the first half of the prior year as the industry pulled forward orders in 2025. The bike environment feels much like last year. Channel inventory has improved but remains volatile and demand signals remain muted as consumers stay cautious. The good news is that we continue to make progress on new customer relationships and product expansion, particularly in categories like e-bikes where we see long-term opportunity. The changing landscape in OEMs who are winning and losing is both a challenge and an opportunity for POX. We are establishing and winning new relationships and the growth we are seeing from these OEMs is a stabilizing force in our business where the rest of the industry is challenged. We would expect bike to revert to seasonal norms and improve sequentially in Q2, though we are working through a temporary disruption tied to challenges in the Middle East affecting some of our suppliers and customers. The financial impact of that disruption is largely confined to Q2, and we expect the associated volume to flow through Q3 as conditions normalize. As I said on our last call, we are not chasing revenue here. We have the financial strength to lead with our brands and the innovation pipeline with new products and customers to protect our margin structure while the industry works through its cycle. Turning to Marzocchi. Bat industry volumes have continued to trend softly, which supports a deliberate decision in alignment with our retail partners to shift our planned Q2 product launches into Q3. Softball continues to be a bright spot. Our new products are resonating, and we are picking up meaningful share in that category. Softball has become an increasingly important contributor within the broader Marzocchi business, and it's a place where we continue to see a runway for growth. To provide perspective, our softball business has grown over 500% since 2024, which supports our innovation investments over the last 2 years. Stepping back across the segments, Q1 came in at the high end of our revenue guide and above the high end of our EBITDA guide. Our cost programs are tracking and the Phoenix divestiture is closed. This performance as well as the operating discipline that is central to our plans gives us the conviction to reaffirm our 2026 outlook today even as the macro environment remains challenging. With that, I will turn it over to Dennis to walk through our financial details. Dennis Schemm: Thanks, Mike. I will begin by discussing our first quarter financial results, followed by our balance sheet, cash flow and capital allocation strategy before concluding with a review of our outlook for fiscal 2026. Total consolidated net sales in the first quarter of fiscal 2026 were $368.7 million, an increase of 3.9% versus the same quarter last year. Gross margin was 28.9% for the first quarter of fiscal 2026 compared to 30.9% in the first quarter last year, with the decrease primarily driven by the unmitigated impact of tariffs and shifts in our product line mix. While the focus over the past year has been on tariff mitigation, we are also seeing higher steel and aluminum costs across our segments with some pressure building into the second quarter. Our profit optimization initiative is sized and pacing to absorb this impact within the framework we laid out in February. Adjusted operating expenses, which exclude the impact of amortization of purchased intangibles, restructuring and other discrete expenses were $85.5 million or 23.2% of net sales in the first quarter of 2026 compared to $84.4 million or 23.8% of net sales in the prior year quarter, reflecting the early benefits of our cost optimization actions. The company's tax benefit was $0.6 million in the first quarter of fiscal 2026 compared to $3.6 million in the first quarter of 2025. Adjusted net income was $7.4 million or $0.18 per diluted share compared to $9.8 million or $0.23 per diluted share in the first quarter last year. Adjusted EBITDA in the first quarter of fiscal 2026 was $35.7 million, exceeding the high end of our guidance range and reflecting the early benefits of our cost optimization work compared to $39.6 million in the prior year period. Adjusted EBITDA margin was 9.7% in the first quarter of 2026, stable sequentially with the fourth quarter of 2025. Importantly, we expect margin expansion to unfold as we move through the year with the bulk of our Phase 2 benefits and the anniversary of last year's tariff implementation, both falling into the second half. Moving to the balance sheet and cash flows. Our debt balance increased by approximately $15 million sequentially to $688.2 million at the end of the first quarter. The primary driver is timing related to working capital. As a reminder, Q1 is seasonally our most demanding quarter from a working capital standpoint with this year reflecting incentive compensation payouts and the cash impact of first half 2026 tariffs. Deleveraging remains a clear priority, and we are taking action on multiple fronts to strengthen our financial position. Recently, we proactively amended our credit agreement to provide additional financial flexibility and expanded covenant headroom. This step was taken from a position of strength. At quarter end, we remained comfortably within the prior threshold and gives us additional runway as we execute the plan. We also maintained our disciplined approach to capital spending with the first quarter capital expenditures of $5.4 million or approximately 1.5% of revenues. tracking below our full year target of approximately 2%. Combined with the EBITDA contribution expected from our cost-out programs and our continued focus on working capital, we expect meaningful progress on debt reduction as we move through the balance of the year. Now moving on to our outlook. Based on our first quarter performance and the continued execution of our cost-out programs, we are reaffirming our full year guide for 2026. For the full year 2026, we continue to expect net sales in the range of $1.328 billion to $1.416 billion and adjusted EBITDA in the range of $174 million to $203 million. At the midpoint, this represents approximately 200 basis points of adjusted EBITDA margin improvement relative to full year 2025. Capital expenditures are expected to be approximately 2% of revenues and our tax rate is expected to be in the range of 15% to 18%. On tariffs, when we laid out our 2026 framework in February, we anticipated approximately $15 million of incremental net tariff impact for the full year, with this headwind concentrated in the first half before we anniversary the prior year implementation in the second quarter. Since that time, the tariff dynamics have shifted with IEPA being replaced by Section 232 framework. Importantly, the Section 232 methodology applies to the value of the aluminum input rather than the full FOB value of the finished product, which results in a meaningfully smaller exposure base for our businesses than we faced under IEPA. Combined with the pricing pass-through and operational mitigation work we've completed across our segments over the past year, we believe the aggregate impact of Section 232 framework is approximately neutral to our businesses in 2026, excluding Marzocchi. At Marzocchi, the applicable tariff rate on imported bath has decreased from 22% under the prior framework to 10% under Section 232, a structural improvement going forward. In 2026, however, that benefit is being absorbed by the soft category demand and inventory dynamics that Mike spoke to. With respect to potential recoveries of tariff costs previously incurred under the IEPA framework, any such recoveries are subject to uncertainty regarding timing, amount and the appropriate allocation across our customer, distributor and supply chain relationships. We have not included any potential recovery in our guidance and will recognize amounts only upon receipt. For the second quarter, we expect net sales in the range of $343 million to $365 million and adjusted EBITDA in the range of $32 million to $40 million. Our Q2 outlook reflects 2 dynamics. The first and largest is the impact of discrete items shifting from Q2 into Q3, most notably the delayed product launch at Marzocchi and the bike supplier disruption that Mike mentioned. The second item is lower F-150 unit volume in our upfit business due to the industry-wide aluminum supply disruption. Unlike the timing items, the Q2 volume tied to this disruption is not expected to be recovered, though, as Mike noted, back half F-150 volumes are expected to remain intact. This impact is reflected in our Q2 outlook. Setting these discrete dynamics aside, the underlying demand environment across our businesses remains consistent with the full year plan we laid out in February. To summarize, Q1 came in at the high end of our revenue guide and above the high end of our EBITDA guide. Our cost programs are executing on plan. Our financial flexibility is stronger after the credit amendment, and we remain confident in our full year 2026 outlook today with margin expansion weighted to the second half, consistent with the framework we laid out in February. With that, Mike, back to you for closing remarks. Michael Dennison: Thanks, Dennis. In closing, I want to leave you with three key messages. The plan we laid out in February is landing. Phase 1 cost benefits are carrying over and Phase 2 is delivering. And we pushed the Phoenix divestiture across the finish line. We're not waiting for the macro to give us anything. We're reaffirming our 2026 guidance, remain committed to delivering the approximately $50 million in cost savings this year and the path to approximately 200 basis points of margin improvement at the midpoint is on track. The work we are doing is disciplined and it's a deliberate focus on fundamentals to ensure we continue to win. Q1 demonstrates the plan is working. We have meaningful work ahead of us in 2026, continuing to execute on profit optimization, advancing our portfolio work and strengthening the balance sheet. And we are doing it against an environment we plan for as much as any company can plan. The team is executing, and we are confident in the path we are on. I want to thank our team for their hard work and dedication during this period. The level of external distractions seems to grow constantly. Through it all, we remain focused and committed to developing the best products across a broad portfolio to enable our enthusiasts to do what they love, continuing our legacy as the best-in-class enthusiast-driven product company across all of the markets we play. With that, operator, please open the call for questions. Operator: Certainly, Mr. Dennison. [Operator Instructions] We'll go first this afternoon to Anna Klaskin with B. Riley. Anna Glaessgen: I'd like to start with some of the commentary you gave around fuel prices and how you're positioned to capture the consumer. The auto OEMs appeared at a recent conference and GM talked about how their rule of thumb is that they usually don't see people considering trading down within fuel -- or trade up in fuel economy until fuel prices have stayed up higher for 4 to 6 months. It sounds like you're maybe seeing some shift in consumer behavior, but just wanted to clarify maybe some of that fuel commentary and what you're seeing boots on the ground. Michael Dennison: Yes, Anna, this is Mike. So our commentary on fuel prices is really just around the general macro. When we talk about our automotive OEM business, again, it's fairly well aligned to high-end premium vehicles, which tend to attract a more affluent buyer who isn't as focused on what the gas price is on any given day. So we haven't seen that relative to our volume or demand in the automotive sector. Where it could start to apply is really a benefit to us in the aftermarket sector where people may not be trading in a lower-end vehicle for a higher-end vehicle because of that higher interest rate and gas price. And in those cases, if they're being more conservative, they tend to lend themselves to our businesses with CWH and Sport Truck and RideTech and others where they're going to upgrade, even PVG, where they're going to upgrade in the aftermarket with our products on their current vehicle. That was really where I was going with those prepared remarks, not that we were experiencing any kind of headwind relative to consumer demand on the premium side. Anna Glaessgen: Got it. That's super helpful. And I wanted to follow up on powersports. It sounds like feeling a bit more positive there, though, of course, staying cautious within the overall outlook. One of the OEMs went out and noted that there could be a material increase in their tariff exposure. Maybe talk about the extent to which that could potentially impact order flow as they'd be facing a pretty significant shift in their P&L? Michael Dennison: Yes, we're well aware of that, Anna. And it's a challenge that company is working through, and we're working through it with them. That said, we are pretty confident in what we saw in Q1 and what we're seeing in the rest of the year relative to powersports. The destocking or inventory rebalancing has really taken shape. And the benefit we have is being diversified across all of the major OEMs in that category with several different product sets allows us to kind of pivot from one OEM to another. And we're seeing that shift happen to some degree in Q2 with a shift between where our mix would have been more higher on one OEM and maybe a little bit higher on another. So we're seeing that balance out pretty well for us and gives us some confidence that, that will continue to be strong for the balance of the year. Operator: We'll go next now to Larry Solow with CJS Securities. Lawrence Solow: I guess first question, just on the implied margin improvement, pretty significant, I guess, right? I think if we kind of take the midpoint of your guidance, it will imply like an exit EBITDA margin like in the high teens. Is that right? 18 -- you can do about 10% in H1, right, and to get to the midpoint, which is about 14%, right, Dennis. So I think you have to have like pretty -- at least exit rate, if not average margin in the back half, about 18%. Is that -- am I doing that math right? And I guess it seems a little aggressive, but maybe just any thoughts on that? Dennis Schemm: Yes. So great question. And first of all, really strong start to the year, right? Our first quarter exceeded our expectations. We're up about $4 million versus the midpoint. And that's something that we expect to stick. But you're asking a great question along the way, how do we have to ramp up. And that's going to really depend on a couple of things. One, we're going to see more improvement in AAG. So Mike talked about the improvements that we need to be delivering on in PVD we need to see more improvement, too, within Marzocchi as well. And so we fully expect that with the product launches that we have lined up. In addition to that, the cost improvement plan is underway. We're seeing the benefits of that already, and we would expect that to be performing in the mid-teens in the Q3s and Q4s. So the back half will be pretty strong there. So final point, though, we're looking for a 200 basis point improvement year-on-year. I think we did 11% for the full year 2025. So it would be 13% is where we're looking -- come into. Okay? Lawrence Solow: Got you. No, that's fair. Just second question, just on the Specialty Sports. And yes, you can parse that out a little better. I guess, was Marzocchi down in the quarter? What's your outlook for the year on that one? And I guess, is that still part of kind of the potential strategic alternatives you're exploring? Dennis Schemm: Yes. So great question. Yes, no problem. So great question. Marzocchi was down in the first quarter, and we talked about that. Again, there's inventory in the channel, and we were having to deal with that overflow in the channel right now. So it slowed things up a bit. Relative to strategic alternatives, I want to be very, very clear we are running that business hard. We are working with the leadership team there. That leadership team and our teams are fully engaged in making sure that we have the best product launches to the market. And we could not be more excited about what we're seeing, for instance, in softball and these Q2 -- sorry, the Q3 launches that the team has set up. Does that help? Lawrence Solow: Yes, very much so. I appreciate the color. Operator: We'll go next now to Peter McGoldrick with Stifel. Peter McGoldrick: I was hoping you could talk more about the bike business. Can you give us some guidelines for your expectations around OE orders, market share for model year '27 changeover spec? And then any sizing of the contribution of these newer customers you pointed out? Michael Dennison: Yes. Good question. So bike is a very interesting industry. As you know, right now, there's a lot of volatility. A lot of the players in the space are down, down significantly. We're forecasting stable to slightly up, which is a reflection of really 2 things, which will lead to the additional answers in your questions. One is product diversification. So continue to expand our portfolio to make sure we're getting on as many products that meet our premium category at the different levels between e-bike and normal mountain bikes, as well as expansion into new customers. For the first time, we looked at the charts the other day and saw that in the top 20 we have a fairly significant rotation of new players versus our traditional players. So it's showing you that, there's disruption happening in that industry, and we're benefiting from our relationship with those new players and the new products that they're creating. So that's giving us a lot of that stability. That gives us a lot of the confidence in the long-term spec. To your second question, how much share do we get. Share is going to be a function of not only the current or traditional players in the space, but how well do you do with the new players. And in our case, we're doing quite well. So we're pretty excited about it. We're investing in that business and innovation. We're adding engineers in that space as we speak to make sure that we've got the right product and that we're delivering to those new customers. Peter McGoldrick: And then I was hoping you could tell us more about the PVD upfitting partnership model. Is that net new business or a new channel for distribution? And if so, what are the economics of that? And then unrelated on tariffs, I just want to make sure that I have this clear. Relative to the $15 million net impact embedded in the prior outlook, the core business is a wash and Marzocchi got better. Is that correct? And if so, by how much more -- or what's the current embedded impact from tariffs? Dennis Schemm: Yes. Michael Dennison: Peter, I'll take the first one and Dennis the second one. So on PVD, those relationships with the large OEMs that's an entirely new channel, new partnership structure. We've been with those OEMs in the past for our bailment programs. So that's always been there. This is an entirely new way to go to market, where we're leveraging their marketing, their sales channels, their booking systems to order those vehicles and those vehicles are drop shipped to us for upfit and then sent to the dealer. So it does a couple of things. One, it relieves us a little bit on the SG&A side relative to marketing and sales pretty significantly actually. And it allows us to actually enter new dealers and create a new relationship that we then can include the rest of our portfolio as we sell into those dealers with our products as well. The products that we're supporting the OEMs with are really constructive to us on the bottom line level because they don't have that SG&A implication that the rest of our business does. They're also more menu-driven -- the kits that we're providing on those solutions, fairly well defined. They flow through production very quickly. So from a factory optimization perspective, they work really well. The forecasting process by which we get them, manage them, push them through is much more elegant than maybe a normal structure. So we really like that business, and it also aligns us very tightly to the innovation cycle of these large OEMs who are trying to create these premium custom trucks. So the doors that opens for us in those conversations all the way up to the executive level in those companies is a huge step forward for us, and the team is very excited about it. So new customer relationship, albeit we already had that relationship just a different way, and therefore, also new channels new ways to go to market and new dealers. Dennis, I'll turn over the tariff question to you. Dennis Schemm: Relative to the tariff, so yes, we do have that $15 million net impact still in the first half. We felt it clearly in Q1, and we're seeing that in Q2 as well. Relative to the tariff changes, they are largely net neutral to the PVG business and to the AAG business. It's Marzocchi that definitely gets the benefit of that. That rate fell by like 54%. So as we look out to the year, that full P&L benefit will phase in as the previous tariffied inventory works through what works through the P&L and should become more visible, we should expect to see some sort of tariff relief maybe in the back half of the year, very late in the year, and it would be low single digits at best. Operator: We have now to Scott Stember with ROTH Capital. Scott Stember: I wanted to dig into the PVG a little bit more on the 17% increase. Mike, when you started talking about it, I think you first said that there was some timing benefits that took place. I believe it was a benefit. Could you maybe talk about that a little bit? Michael Dennison: It was. And that was expected on our part relative to Q4 to Q1 timing, Q4 of last year to Q1 of this year. So that did help us. But across the board, just to kind of give you a better picture on PVG in general, overall, aftermarket was a very good story for us in Q1. Powersports was a good story for us in Q1. And automotive really held up to its expectations in Q1. So most of the upside was contemplated and thought about relative to where we thought that business could go in Q1, again, getting some benefit from timing in Q4 to Q1. Scott Stember: Got it. And then -- as far as the $40 million of incremental savings in Phase 2 of the plan, how much of that did we see in the first quarter? Did you mention that already? Michael Dennison: Yes. We -- I didn't mention it. So fair question. And again, just to be clear on that, we have a $50 million contribution coming through the year, $10 million of carryover and then $40 million net new. And so we probably saw mid-single digits come through in the first quarter. So we're feeling good about the start of the year, and that will progressively layer up as we move through the year. Scott Stember: Okay. And then on the balance sheet, it looks like you guys have a good plan for delevering. But what was the leverage ratio at the end of the quarter? Michael Dennison: I think we're right around 3.77, if I'm not mistaken. So plenty of headroom against the covenant. And then we recently amended our banking agreement to just provide us with more headroom, more flexibility as we move through the year. Operator: And gentlemen, it appears we have no further questions this afternoon. Mr. Dennison, back to you, sir, for any closing comments. Michael Dennison: Thanks for everybody's time today, and have a good evening. Operator: Thank you very much, Mr. Dennison, and thank you, Mr. Schemm. Again, ladies and gentlemen, this will conclude the Fox Factory Holding Corporation's first quarter 2026 earnings call. You may disconnect your line at this time, and have a great day. Goodbye. Before you buy stock in Fox Factory, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fox Factory wasn’t one of them. 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