Fox Factory said its board appointed independent director Douglas Grimm as interim chief executive effective Oct. 16, replacing Mike Dennison, who stepped down as CEO and board member after seven years with the company.
The leadership change came alongside weaker preliminary third-quarter fiscal 2026 results and a cut to full-year guidance.
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 means the midpoint of the new range is about $29 million below the midpoint of the old range. The company said third-quarter sales included about $33 million from Marucci Sports before the divestiture closed on Sept. 25, versus about $46 million assumed in its prior guidance for the full quarter.
Adjusted EBITDA for the quarter is now expected to be $38 million to $42 million, excluding about $12 million of tariff refunds received in the period, compared with prior guidance of $46 million to $54 million. The midpoint of the new range is $8 million below the midpoint of the old range.
Fox said the shortfall reflected lower sales and margins at Marucci Sports before the divestiture closed, weaker-than-expected sales and margins in the powered vehicles group, operating problems in the aftermarket applications group’s upfit business, and softer bike sales in specialty sports.
For the fourth quarter, the company lowered expectations to net sales of $287 million to $313 million and adjusted EBITDA of $23 million to $29 million, both excluding Marucci Sports.
For fiscal 2026, 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. The midpoint of the new sales range is $80 million below the midpoint of the old range.
Full-year adjusted EBITDA is now projected at $140 million to $150 million, excluding about $14 million of tariff refunds received in the second and third quarters, versus prior guidance of $176 million to $196 million. That is a reduction of $41 million at the midpoint.
Including tariff refunds, Fox now expects fiscal 2026 adjusted EBITDA of $154 million to $164 million.
The company said about $63 million of the reduction in full-year sales reflects Marucci Sports, including roughly $50 million of fourth-quarter sales that had been included in prior guidance. It also pointed to continued supply disruption and higher steel, aluminum and freight costs in the powered vehicles group, plus lower chassis availability and ongoing operational issues in the aftermarket applications business.
The board said it has begun a search for a permanent CEO. Following these announcements, the company's shares moved 5.83%, and are now trading at a price of $18.50. For more information, read the company's full 8-K submission here.
