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1. Company Snapshot

1.a. Company Description

Fox Factory Holding Corp.designs, engineers, manufactures, and markets ride dynamics products worldwide.The company offers mid-end and high-end front fork and rear suspension products for mountain bikes, road bikes, and e-bikes; and powered vehicle products for side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, and specialty vehicles and applications, such as military, motorcycles, and commercial trucks.


It also provides mountain and road bike wheels, and other performance cycling components, including cranks, chain rings, pedals, bars, stems, and seat posts, as well as sells aftermarket products to dealers and distributors.The company offers powered vehicles under the FOX, BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4x4 Posi-Lok, Ridetech, Tuscany, Outside Van, and SCA brands; and mountain bikes and road bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands.Fox Factory Holding Corp.


was incorporated in 2007 and is headquartered in Duluth, Georgia.

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1.b. Last Insights on FOXF

Fox Factory Holding Corp.'s recent performance was positively driven by early signs of recovery across all segments, particularly in Specialty Sports. The company's Q2 revenue jumped 8%, with earnings of $0.40 per share, slightly missing estimates. Despite leverage rising due to acquisitions, management prioritizes debt reduction and cost-cutting initiatives. A recent rating upgrade suggests shares may be undervalued if recovery continues. The company's focus on performance-defining products and systems, along with a solid Q2 revenue growth, supports its growth prospects.

1.c. Company Highlights

2. Fox Factory's Q3 Earnings: A Mixed Bag

Fox Factory Holding Corp.'s third quarter 2025 earnings report presented a mixed picture, with net sales rising 5% year-over-year to $376.4 million and adjusted EBITDA increasing 6% to $44.4 million. However, the company's net loss was $0.6 million, or $0.02 loss per diluted share, compared to net income of $4.8 million, or $0.11 per diluted share, in the same period last year. Adjusted net income was $9.9 million, or $0.23 per diluted share, which fell short of estimates of $0.56. The company's gross margin was 30.4%, and adjusted operating expenses were $85.7 million.

Publication Date: Nov -20

📋 Highlights
  • Revenue & EBITDA Growth:: Q3 net sales rose 5% to $376.4M, with adjusted EBITDA up 6% to $44.4M, driven by AAG and PVG segments.
  • SSG Underperformance:: Specialty Sports Group missed targets, contributing to a net loss of $0.6M vs. $4.8M profit in Q3 2024 due to weak consumer demand.
  • Revised Q4 Guidance:: Sales cut to $340–$370M, and adjusted EPS trimmed to $0.05–$0.25, reflecting SSG inventory management and supplier fire disruptions.
  • Cost Reduction Progress:: $25M annual target on track, with $17.4M debt reduction year-to-date and plans to enhance free cash flow for leverage reduction.

Segment Performance

The company's growth was driven by the Aftermarket Applications Group (AAG) and Powersports and Vehicle Group (PVG), while the Specialty Sports Group (SSG) underperformed expectations due to a softening consumer environment. The SSG segment is experiencing a challenging retail environment, with dealers and distributors managing inventories ahead of year-end. Meanwhile, the PVG segment was impacted by an aluminum supplier fire affecting supply chains and sales.

Guidance Update

The company updated its full-year outlook due to SSG's underperformance and expects a challenging macro environment in Q4. For Q4, net sales are expected to be $360 million to $380 million, and adjusted EBITDA is expected to be $40 million to $45 million. The company reduced its Q4 guidance due to the supplier fire and a challenging retail environment. For fiscal year 2025, net sales guidance is updated to $1.445 billion to $1.475 billion, and adjusted earnings per diluted share guidance is updated to $0.92 to $1.12.

Valuation and Outlook

With a P/E Ratio of -2.19 and an EV/EBITDA of -3.71, the company's valuation metrics reflect the challenges it is facing. However, the company's focus on cost reduction, portfolio optimization, and working capital management is expected to drive profitability. For 2026, analysts estimate revenue growth at 7.2%, and the company is focused on ensuring product launches and optimizing the business to achieve growth despite a challenging macro environment. The company's Free Cash Flow Yield of 15.14% is a positive indicator, suggesting that the company is generating strong cash flows.

3. NewsRoom

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Fox Factory Holding Corp. $FOXF Shares Bought by Geode Capital Management LLC

Nov -29

Source: defenseworld.net

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Advantage Alpha Capital Partners LP Grows Stake in Fox Factory Holding Corp. $FOXF

Nov -28

Source: defenseworld.net

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Fox Factory (NASDAQ:FOXF) vs. Rivian Automotive (NASDAQ:RIVN) Head-To-Head Contrast

Nov -21

Source: defenseworld.net

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Fox Factory (NASDAQ:FOXF) & General Motors (NYSE:GM) Critical Review

Nov -21

Source: defenseworld.net

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Fox Factory Holding (FOXF) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -07

Source: zacks.com

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Fox Factory Holding (FOXF) Q3 Earnings and Revenues Miss Estimates

Nov -07

Source: zacks.com

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Fox Factory Holding Corp. (FOXF) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Nisa Investment Advisors LLC Has $111,000 Position in Fox Factory Holding Corp. $FOXF

Nov -05

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.34%)

6. Segments

Aftermarket Applications

Expected Growth: 8.85%

Fox Factory Holding Corp.'s aftermarket applications growth of 8.85% is driven by increasing demand for high-performance suspension products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, quality, and customer service has led to market share gains, contributing to the segment's growth.

Powered Vehicle

Expected Growth: 7.77%

Fox Factory Holding Corp.'s Powered Vehicle segment growth of 7.77% is driven by increasing demand for off-road vehicles, rising popularity of outdoor recreational activities, and strategic partnerships with original equipment manufacturers (OEMs). Additionally, the company's focus on innovation, quality, and customer satisfaction has led to market share gains and expansion into new geographic markets.

Specialty Sports

Expected Growth: 8.4%

The 8.4% growth in Specialty Sports from Fox Factory Holding Corp. is driven by increasing demand for high-performance mountain bikes, e-bikes, and outdoor gear, fueled by consumer preferences for sustainable and healthy lifestyles. Additionally, strategic partnerships, innovative product launches, and expanding distribution channels contribute to the segment's growth.

7. Detailed Products

Mountain Bikes

High-performance mountain bikes designed for off-road adventures

Downhill Forks

High-performance suspension forks designed for downhill mountain biking

Enduro Forks

High-performance suspension forks designed for enduro mountain biking

Cross-Country Forks

Lightweight and efficient suspension forks designed for cross-country mountain biking

Shox Rear Shocks

High-performance rear shocks designed for mountain bikes

Off-Road Vehicle Suspension

High-performance suspension systems designed for off-road vehicles

Truck and SUV Suspension

High-performance suspension systems designed for trucks and SUVs

8. Fox Factory Holding Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Fox Factory Holding Corp. is medium due to the availability of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers for Fox Factory Holding Corp. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Fox Factory Holding Corp. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for Fox Factory Holding Corp. is high due to the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for Fox Factory Holding Corp. is high due to the presence of several established competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.28%
Debt Cost 3.95%
Equity Weight 61.72%
Equity Cost 12.37%
WACC 9.14%
Leverage 62.01%

11. Quality Control: Fox Factory Holding Corp. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
XPEL

A-Score: 4.6/10

Value: 4.1

Growth: 9.0

Quality: 7.9

Yield: 0.0

Momentum: 2.5

Volatility: 4.0

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Motorcar Parts of America

A-Score: 4.5/10

Value: 6.5

Growth: 4.8

Quality: 3.7

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

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Cooper-Standard

A-Score: 4.0/10

Value: 6.7

Growth: 3.2

Quality: 3.5

Yield: 0.0

Momentum: 9.5

Volatility: 1.3

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Gentherm

A-Score: 3.9/10

Value: 5.2

Growth: 4.9

Quality: 5.2

Yield: 0.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Fox Factory

A-Score: 3.7/10

Value: 8.4

Growth: 5.2

Quality: 3.9

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Stoneridge

A-Score: 3.2/10

Value: 7.6

Growth: 4.3

Quality: 2.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.56$

Current Price

16.56$

Potential

-0.00%

Expected Cash-Flows