Fox Factory (FOXF) Q4 2024 earnings summary

Executive summary

• Q4 net sales reached $352.8M, up 6.1% year-over-year, with gross margin at 28.9%, a 120 bps increase, and adjusted EPS for Q4 at $0.31.

• Full-year 2024 net sales were $1.39B, down 4.8% from 2023, with net income dropping to $6.6M from $120.8M.

• Delivered Q4 and FY24 results in line with guidance, with $25M cost reduction initiative progressing and $63M debt paydown in Q4.

• Focused on operational efficiency, product development, and strategic diversification across segments and geographies.

• Completed Colorado facility closure and initiated further footprint consolidation, with full benefits expected by 2026.

Financial highlights

• Q4 adjusted EBITDA was $40.4M (11.5% margin), up from $38.8M last year; full-year adjusted EBITDA was $167M (12.0% margin), down from $261M in 2023.

• Q4 net loss was $0.1M (vs. $4.1M net income YoY); full-year net income was $6.6M.

• Q4 adjusted gross margin was 29.2% (up 20 bps YoY); full-year adjusted gross margin was 30.8% (down 200 bps YoY).

• Q4 adjusted operating expenses: $76.4M (21.7% of sales); full-year adjusted operating expenses: $310.9M (22.3% of sales).

• Working capital improved by $55M YoY; revolver balance reduced to $153M from $370M YoY.

Outlook and guidance

• FY25 net sales expected: $1.385B–$1.485B; adjusted EPS: $1.60–$2.60; adjusted tax rate: 15%–18%.

• Q1 FY25 net sales: $320M–$350M; adjusted EPS: $0.12–$0.32.

• Revenue and margin improvement weighted to 2H25 as cost reduction benefits materialize.

• Guidance excludes tariff impacts; cautious near-term outlook due to demand environment and ongoing tariff developments.