Fox Factory said its board has appointed independent director Douglas Grimm as interim chief executive officer, replacing Mike Dennison effective Oct. 16, 2026. The company also launched a search for a permanent CEO.
The leadership change came alongside a weaker-than-expected third quarter and a reduced full-year outlook.
For the third 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 $44 million versus the earlier range. Preliminary adjusted EBITDA is expected to be $38 million to $42 million, versus prior guidance of $46 million to $54 million.
Marucci Sports contributed about $33 million of third-quarter sales before its Sept. 25 divestiture, below the roughly $46 million assumed in guidance for the full quarter.
For fiscal 2026, Fox cut its sales outlook to $1.35 billion to $1.38 billion from $1.42 billion to $1.47 billion. That is a reduction of $70 million to $90 million. The company said about $63 million of that cut reflects Marucci’s divestiture, including about $50 million of fourth-quarter sales that had previously been included in guidance.
Full-year adjusted EBITDA is now expected to be $140 million to $150 million, down from $176 million to $196 million. That is a reduction of $36 million to $56 million. Including tariff refunds, Fox now expects adjusted EBITDA of $154 million to $164 million.
For the fourth quarter, the company is now guiding to net sales of $287 million to $313 million and adjusted EBITDA of $23 million to $29 million, both excluding Marucci Sports.
Fox said third-quarter results were pressured by lower sales and margins at Marucci, a supply disruption and higher operating costs in the powered vehicles group, operating issues in its aftermarket upfit business, and softer bike sales. The market has reacted to these announcements by moving the company's shares 5.83% to a price of $18.50. Check out the company's full 8-K submission here.
