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Fox Factory (FOXF) investor relations material
Fox Factory Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Q2 2025 net sales rose 7.6% year-over-year to $374.9M, with growth across all segments, driven by bike sales stabilization, aftermarket demand, and motorcycle business expansion.
Net income for Q2 2025 was $2.7M, down from $5.4M last year, mainly due to higher operating expenses and a spike in the effective tax rate.
Adjusted EBITDA for Q2 2025 increased to $49.3M, with margin reaching 13.1%, the highest in nearly two years, reflecting cost reduction and operational improvements.
A $262.1M non-cash goodwill impairment in H1 2025 led to a net loss of $257.0M for the six months.
Focus remains on innovation, product launches, and operational excellence to drive market share and long-term growth.
Financial highlights
Q2 2025 gross margin was 31.2%, down 60 bps year-over-year, but up 30 bps sequentially; adjusted gross margin was 31.3%.
Q2 2025 net income was $2.7M ($0.07/diluted share); adjusted net income was $16.6M ($0.40/diluted share).
Adjusted EBITDA for Q2 2025 rose 11.5% to $49.3M; margin up 40 bps year-over-year and 190 bps sequentially.
Operating expenses for Q2 2025 were $98.5M (26.3% of sales), up due to restructuring, R&D, and marketing.
Net leverage improved to 3.8x from 4.1x in Q1 2025.
Outlook and guidance
Q3 2025 net sales expected at $370M–$390M; adjusted EPS $0.45–$0.65.
Full-year 2025 net sales guidance raised to $1.45B–$1.51B; adjusted EPS narrowed to $1.60–$2.00 due to tariff impacts; adjusted tax rate 15%-18%.
Free cash flow for the year expected at $80M; net leverage targeted below 3x by year-end.
Management expects liquidity to be sufficient for the next 12 months and beyond.
Tariff expense for 2025 now expected to reach $50M, with countermeasures in place to offset impacts.
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Frequently asked questions
Shock Absorbers and Suspension Systems
Fox Factory is an American company with multinational operations that specializes in the design, manufacturing, and marketing of performance-defining suspension products primarily for bicycles, and on-road and off-road vehicles, including trucks, SUVs, ATVs, UTVs, and motorcycles. The company has grown to be a prominent name in the suspension systems sector and provides products both for enthusiasts and hobbyists as well as professionals. The company is headquartered in Duluth, Georgia, and its shares are listed on the Nasdaq.
Founding and Innovation
Fox Factory was established in 1974 by Bob Fox, whose innovative designs of air shocks for motocross bikes quickly garnered attention in the racing community, leading to an expansion into producing suspension products for bicycles, off-road vehicles, and trucks. Throughout its history, Fox Factory has maintained a strong commitment to performance and quality, a dedication that has propelled it to a leading position in the suspension industry. The company's growth includes significant technological advancements and expansions into new vehicle categories, continually evolving with the ever-increasing demands of professionals and enthusiasts. Companies operating in the same industry, albeit with different specialties than Fox Factory, include names such as Polaris, Harley-Davidson, and BRP.
High-performance
Fox Factory specializes in high-performance suspension and shock absorber systems, catering to a wide range of vehicles. Their product line primarily includes suspension components for mountain bikes, which are designed with a focus on durability and advanced damping technology. In the automotive sector, Fox develops sophisticated shock absorbers and suspension parts for vehicles such as trucks, SUVs, ATVs, UTVs, and motorcycles. These products are designed to enhance ride comfort, as well as performance in rugged terrains and extreme conditions.
For Professionals and Enthusiasts
Fox Factory's products cater to both enthusiasts and professionals by offering high-performance suspension systems across various categories. For enthusiasts, their products enhance the overall experience, improving comfort and control in recreational activities like mountain biking and off-roading. Professionals, such as racers and extreme sports athletes, benefit from the advanced damping technology and build quality that Fox provides for performance and reliability under competitive and demanding conditions.
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