Fox Factory Holding Corp Appoints Interim CEO, Cuts Outlook

By Ahmed Jamerson • Sunday, October 18 01:51 • Permanent Link

Fox Factory said its board has appointed independent director Douglas Grimm as interim chief executive officer, effective Oct. 16, 2026, replacing Mike Dennison, who stepped down as CEO and board member.

The company also cut its third-quarter and full-year fiscal 2026 outlook after preliminary results came in below expectations.

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 includes about $33 million from Marucci Sports, versus roughly $46 million assumed in the original guidance for the full quarter. Adjusted EBITDA is now projected at $38 million to $42 million, excluding about $12 million of tariff refunds, compared with prior guidance of $46 million to $54 million.

Fox said the shortfall was driven by lower sales and margins at Marucci Sports before the divestiture closed, weaker performance in the powered vehicles group because of a supply disruption and higher operating costs, challenges in the aftermarket applications upfit business, and softer bike sales.

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

For fiscal 2026, the company reduced its net sales outlook to $1.35 billion to $1.38 billion, from $1.42 billion to $1.47 billion previously. That includes about $63 million of reduction tied to Marucci Sports, including roughly $50 million of fourth-quarter sales that had been included in the prior outlook.

Full-year adjusted EBITDA is now expected at $140 million to $150 million, excluding about $14 million of tariff refunds, versus prior guidance of $176 million to $196 million. Including those refunds, adjusted EBITDA is expected to be $154 million to $164 million.

Fox said Marucci Sports contributed about $33 million of third-quarter sales and $113 million for fiscal 2026 through the Sept. 25 divestiture closing. The market has reacted to these announcements by moving the company's shares 5.83% to a price of $18.50. For more information, read the company's full 8-K submission here.

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