Fox Factory Holding Corp (FOXF) Cuts Fiscal 2026 Outlook, Replaces CEO

By Philip Seaworth • Saturday, October 17 16:10 • Permanent Link

Fox Factory said it has replaced CEO Mike Dennison with independent director Douglas Grimm as interim chief executive, effective Oct. 16, while the board searches for a permanent leader.

The company also cut its fiscal 2026 outlook after preliminary third-quarter results came in below plan.

For the quarter ended Oct. 2, Fox now expects net sales of $336 million to $340 million, down from prior guidance of $355 million to $380 million. That implies a shortfall of about $19 million to $40 million versus the earlier range.

Adjusted EBITDA for the quarter is now expected at $38 million to $42 million, compared with prior guidance of $46 million to $54 million. That is $8 million to $16 million below the earlier outlook.

Fox said the quarter included about $33 million of sales from Marucci Sports before that divestiture closed on Sept. 25, versus about $46 million assumed in the original guidance.

By segment, the company blamed the miss on lower sales and margins at Marucci Sports, weaker-than-expected results in its powered vehicles group due to a supply disruption and higher operating costs, operational issues in aftermarket applications’ upfit business, and softer bike sales.

For the fourth quarter, Fox lowered its net sales outlook to $287 million to $313 million, with adjusted EBITDA of $23 million to $29 million, excluding Marucci.

For the full fiscal year, Fox now expects net sales of $1.35 billion to $1.38 billion, down from prior guidance of $1.42 billion to $1.47 billion. That is a reduction of $70 million to $90 million.

Full-year adjusted EBITDA is now projected at $140 million to $150 million, versus prior guidance of $176 million to $196 million. That is $26 million to $56 million lower than the previous range.

Fox said the revised full-year sales outlook includes about $63 million tied to Marucci’s divestiture, including roughly $50 million of fourth-quarter sales that had been in the prior guidance. Following these announcements, the company's shares moved 5.83%, and are now trading at a price of $18.50. For the full picture, make sure to review FOX FACTORY HOLDING CORP's 8-K report.

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