Fox Factory (FOXF) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales rose 3.9% year-over-year to $368.7 million, reaching the high end of guidance, driven by powersports, automotive aftermarket, and upfitting demand.

• Adjusted EBITDA was $35.7 million, exceeding guidance, while adjusted net income was $7.4 million ($0.18 per diluted share), down from $9.8 million ($0.23 per share) in Q1 2025.

• Net loss narrowed to $15.0 million, or $0.36 per diluted share, compared to a $259.7 million loss last year, reflecting the absence of a prior-year goodwill impairment charge and improved operations.

• Early results from the February transformation plan and multi-phase profit optimization strategy are materializing, with phase one savings carrying over and phase two actions underway, targeting $50 million in cost savings for fiscal 2026.

• The Phoenix, Arizona operations divestiture closed as planned, with proceeds dedicated to debt reduction.

Financial highlights

• Total consolidated net sales increased 3.9% year-over-year to $368.7 million in Q1 2026.

• Gross margin declined to 28.9% from 30.9% year-over-year, mainly due to tariffs and product mix shifts.

• Adjusted EBITDA was $35.7 million, down from $39.6 million year-over-year, but above guidance; adjusted EBITDA margin was 9.7%, down from 11.2% last year.

• Adjusted net income was $7.4 million, compared to $9.8 million last year.

• Cash and cash equivalents stood at $53.9 million at quarter-end; total debt was $688.2 million.

Outlook and guidance

• Full-year 2026 net sales expected between $1.328-$1.416 billion; adjusted EBITDA between $174-$203 million, reaffirmed.

• Q2 2026 net sales expected between $343-$365 million; adjusted EBITDA between $32-$40 million.

• Guidance implies approximately 200-basis points of adjusted EBITDA margin improvement over 2025.

• Approximately $50 million in cost savings targeted for fiscal 2026, with Phase 2 actions on schedule.

• No potential tariff recoveries included in outlook due to uncertainty.