Fox Factory Holding Corp. reported a challenging fiscal year 2025 with a significant net loss, primarily due to goodwill and asset impairments. Despite revenue growth driven by the Aftermarket Applications Group and Powered Vehicles Group, the company faced margin compression and reduced adjusted EPS. Management is launching Phase 2 of its profit optimization plan to drive cost savings and margin improvement in fiscal 2026.
Net sales increased 2.3% year-over-year to $361.1 million in Q4 FY2025.
positiveFull year net sales increased 5.3% year-over-year to $1.467 billion.
positivePhase 1 of profit optimization plan yielded approximately $25 million in savings in fiscal 2025.
positivePhase 2 of profit optimization strategy targets approximately $40 million in additional savings for fiscal 2026.
positiveNet loss of $287.0 million, or $6.86 per diluted share, in Q4 FY2025 compared to a net loss of $0.1 million, or $0.00 per diluted share, in the prior year quarter.
negativeAdjusted earnings per diluted share decreased to $0.20 in Q4 FY2025 from $0.31 in the prior year quarter.
negativeAdjusted EBITDA decreased to $35.0 million in Q4 FY2025 from $40.4 million in the prior year quarter.
negativeAdjusted EBITDA margin in Q4 FY2025 was 9.7%, down from 11.5% in the prior year quarter.
negativeFull year net loss attributable to FOX stockholders was $544.6 million, compared to net income of $6.6 million in the prior year.
negativeFull year adjusted net income decreased to $44.6 million, or $1.06 per diluted share, from $55.4 million, or $1.33 per diluted share, in the prior fiscal year.
negativeGross margin for the full year was 30.2%, down from 30.4% in the prior year, with adjusted gross margin also decreasing.
attentionSpecialty Sports Group (SSG) net sales decreased by 5.0% in Q4 FY2025 due to inventory reductions by OEMs, distributors, and dealers.
attentionGoodwill impairment of $557.3 million and intangible and long-lived asset impairment of $13.5 million in FY2025.
negativeMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Powered Vehicles Group (PVG) | N/A | — | — | — |
Aftermarket Applications Group (AAG) | N/A | — | — | — |
Specialty Sports Group (SSG) | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Fiscal 2025 was a year of both challenges and meaningful progress.
Successfully executing our Phase 1 profit optimization plan, which yielded approximately $25 million in realized cost savings for the year and helped us mitigate the full effect of tariffs.
We are taking comprehensive actions to restore our historical adjusted EBITDA margins in the mid-to-high teens and accelerate our path to balance sheet improvement.
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