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what it is
Fox Factory sells high-end suspension and ride-control parts for bikes, trucks, side-by-sides, and other machines built to get dirty.
how it gets paid
Last year Fox Factory made $1.5B in revenue. Specialty Sports Group was the main engine at $0.52B, or 35% of sales.
why it's growing
Revenue grew 5.3% last year. EDGAR shows latest-quarter revenue up 194% vs. prior year to $1.1 billion.
what just happened
The latest quarter showed revenue of $1.1 billion, but EPS was crushed by the 2025 reset.
At a glance
B+ balance sheet — decent shape, but not bulletproof
20/100 earnings predictability — expect surprises
20.9x trailing p/e — priced about right
4.0% return on capital — nothing to write home about
xvary composite: 47/100 — below average
What they do
Fox Factory sells high-end suspension and ride-control parts for bikes, trucks, side-by-sides, and other machines built to get dirty.
This company sells premium suspension, which is the part that decides whether your ride feels planted or sketchy. Its products sit across bicycles, trucks, ATVs, and motorcycles, and 2025 revenue still reached $1.5 billion despite ugly demand swings. That brand reach matters because aftermarket → replacement parts sold after the original purchase → so what: you are not relying only on new vehicle sales.
How they make money
$1.5B
annual revenue · their business grew +5.3% last year
Specialty Sports Group
$0.52B
11.2%
Powered Vehicles Group
$0.45B
+5.0%
Aftermarket Applications Group
$0.31B
+5.0%
Other ride dynamics applications
$0.22B
+5.3%
The products that matter
vehicle upgrades and replacement parts
Aftermarket Applications Group
17.4% sales growth
this unit helped hold up a $1.5B company, with net sales up 17.4% in the latest period cited on the page. when consumers still spend on upgrades, the brand still has pull.
core demand
off-road and utility vehicle systems
Powered Vehicles Group
+15.1% growth
this was the fastest-growing segment last year, up 15.1%. if there is a clean bull-case datapoint on this page, it lives here.
growth engine
bike and sport components
Specialty Sports Group
-11.2% sales decline
sales fell 11.2% as manufacturers and distributors cut inventory. that matters because one weak category can erase a lot of effort elsewhere when margins are already thin.
problem child
Key numbers
$0.90
fy2026 eps est
$2B
fy2026 rev est
20.9x
trailing p/e
30.8%
gross margin
Gross profit kept about 30.8% of each revenue dollar.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $663M (45% of capital)
- net profit margin 3.8% — keeps 4 cents of every dollar in revenue
- return on equity 6% — $0.06 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in FOXF 3 years ago → it's now worth $1,710.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
The latest quarter showed revenue of $1.1 billion, but EPS was crushed by the 2025 reset.
EDGAR shows latest-quarter revenue up 194% vs. prior year to $1.1 billion, while annual 2025 EPS ended at negative $6.15. Gross margin was 30.8%, and management said aftermarket and powered vehicles helped offset weaker specialty sports demand.
$1.1B
revenue
-$6.17
eps
30.8%
gross margin
the number that mattered
The number that mattered was negative $6.15 in 2025 EPS, because it turned a cyclical slowdown into a credibility problem.
-
fox factory holding’s 2025 performance was uninspiring.
-
indeed, the company posted a reported net loss of $0.02 a share in the third quarter, on a 5% uptick in sales.
-
much of the top-line progress can be attributed to the aftermarket applications group and the powered vehicles group, which reported 17.4% and 15.1% jumps in net sales, respectively.
-
this provided a counterbalance to the 11.2% drop in specialty sports group sales, which were tempered by original equipment manufacturers, distributors, and dealers paring inventory levels in response to market-wide economic conditions.the bottom line was tempered by increased r&d and marketing expenses to support strategic launches and product innovation. all told, we look for the company to post a net loss of about $6.15 a share for 2025, with a significant bottom-line turnaround likely in the cards for the current year.
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and investors are certainly not impressed.
source: company earnings report, 2026
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What could go wrong
the #1 risk is margin compression in a cyclical enthusiast-products business.
med
thin profits leave almost no cushion
A 13.0% operating margin becomes just a 2.5% net margin. When that much disappears below operating income, small demand misses can do outsized damage to earnings.
At a 2.5% net margin on $1.5B of revenue, the business keeps only about $38M. There is not much room for error.
med
specialty sports is still in inventory correction mode
Specialty Sports Group sales fell 11.2% as manufacturers and distributors cut inventory. If that channel stays soft, stronger categories have to keep bailing out the consolidated numbers.
One segment is down double digits while the company-wide net margin is only 2.5%. That combination is how recoveries stall.
med
debt makes the turnaround less forgiving
Long-term debt sits at $663M, or 45% of capital. That is manageable in a healthy cycle. It is less comfortable when return on capital is 2.0% and return on equity is 4%.
If profits stay weak, leverage stops being a footnote and starts being part of the thesis.
$663M of long-term debt, 45% debt to capital, and a 2.5% net margin mean FOXF needs demand and mix to cooperate. Another category wobble would hit a business that already runs with a very thin buffer.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next margin print
revenue growth matters less here than whether that 2.5% net margin finally moves in the right direction.
trend
specialty sports demand
an 11.2% sales drop tied to inventory reduction is tolerable once. it becomes a thesis problem if it keeps repeating.
metric
powered vehicles growth
15.1% growth is the cleanest positive number on the page. if that cools, the bull case loses its best witness.
risk
institutional sponsorship
two straight quarters of net selling is not a disaster, but it is not support either. watch whether that flow stabilizes.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think this can keep lagging until the recovery shows up in real profits.
risk profile
average
stability score 3 — not a bunker stock, not a total casino chip.
chart momentum
below average
technical score 4 — the chart is still asking management to prove the turnaround is real.
earnings predictability
20 / 100
earnings predictability is low. Translation: do not expect smooth, boring quarter-to-quarter execution.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 108 buyers vs. 119 sellers in 3q2025. total institutional holdings: 41.5M shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$12
$38
$19
current price
$25
target midpoint · +33% from current · 3-5yr high: $55 (+195% · 30% ann'l return)
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