Market Overview - The CNN Money Fear and Greed index showed some easing in the overall fear level, remaining in the "Extreme Fear" zone with a current reading of 21.1, up from 18.3 [5][6] - U.S. stocks settled mixed, with the Nasdaq Composite falling approximately 0.2% and declining 3% over the past week, while the S&P 500 and Dow each declined more than 1% [1] Economic Sentiment - The University of Michigan's consumer sentiment index dropped to its lowest level since June 2022, indicating increased investor anxiety regarding the labor market and broader economy [1] - The subindex tracking current economic conditions recorded the worst reading since the survey began in 1951 [2] Company Performance - Fluor Corp. (NYSE:FLR) shares gained over 2% after reporting third-quarter results [2] - Fox Factory Holding Corp. (NASDAQ:FOXF) shares fell 25% following worse-than-expected third-quarter financial results and below-estimate fourth-quarter guidance [2] Sector Performance - Most sectors on the S&P 500 closed positively, with energy, utilities, and real estate stocks showing the biggest gains [3] - Communication services and information technology stocks closed lower, bucking the overall market trend [3] Upcoming Earnings - Investors are awaiting earnings results from Tyson Foods Inc. (NYSE:TSN), Interpublic Group of Companies Inc. (NYSE:IPG), and Occidental Petroleum Corp. (NYSE:OXY) [4]

Core Insights - Fox Factory Holding (FOXF) reported revenue of $376.36 million for the quarter ended September 2025, reflecting a year-over-year increase of 4.8% but falling short of the Zacks Consensus Estimate by 1.72% [1] - The company's EPS was $0.23, a decrease from $0.35 in the same quarter last year, resulting in an EPS surprise of -58.93% compared to the consensus estimate of $0.56 [1] Financial Performance - The Aftermarket Applications Group generated net sales of $117.77 million, exceeding the average estimate of $108.15 million, with a year-over-year increase of 17.4% [4] - The Powered Vehicles Group reported net sales of $125.87 million, surpassing the estimated $114.9 million, marking a 15.1% increase compared to the previous year [4] - The Specialty Sports Group's net sales were $132.72 million, which was below the average estimate of $161.45 million, indicating a year-over-year decline of 11.2% [4] Stock Performance - Over the past month, shares of Fox Factory Holding have returned -5.1%, contrasting with a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Motorsport Games Inc. (MSGM) has seen a substantial increase of 122%, trading at $4.88 [3] - Globus Medical, Inc. (GMED) is up 27%, currently priced at $78.75 [3] - JFrog Ltd. (FROG) has risen by 26%, trading at $59.60 [3] - FIGS, Inc. (FIGS) is up 19%, with a trading price of $8.97 [3] - Organogenesis Holdings Inc. (ORGO) has increased by 18%, trading at $4.59 [3] - PureCycle Technologies, Inc. (PCT) is up 17%, currently priced at $11.31 [3] - Expedia Group, Inc. (EXPE) has risen by 16%, trading at $255.10 [3] - 10x Genomics, Inc. (TXG) is up 13%, currently priced at $14.72 [3] - Abacus Global Management, Inc. (ABL) has increased by 12%, trading at $5.95 [3] - GigaCloud Technology Inc. (GCT) is up 9%, currently priced at $27.80 [3] Premarket Losers - Davis Commodities Limited (DTCK) has experienced a significant decline of 65%, trading at $2.23 [4] - Eledon Pharmaceuticals, Inc. (ELDN) is down 46%, currently priced at $2.19 [4] - Treace Medical Concepts, Inc. (TMCI) has decreased by 35%, trading at $4.00 [4] - Energys Group Limited (ENGS) is down 30%, currently priced at $2.77 [4] - Intellia Therapeutics, Inc. (NTLA) has seen a decline of 27%, trading at $8.89 [4] - Fox Factory Holding Corp. (FOXF) is down 24%, currently priced at $16.60 [4] - Opendoor Technologies Inc. (OPEN) has decreased by 24%, trading at $4.94 [4] - AirSculpt Technologies, Inc. (AIRS) is down 21%, currently priced at $8.27 [4] - Power Solutions International, Inc. (PSIX) has seen a decline of 20%, trading at $64.25 [4] - ClearPoint Neuro, Inc. (CLPT) is down 17%, currently priced at $15.00 [4]

分组1 - Fox Factory Holding (FOXF) reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.56 per share, and down from $0.35 per share a year ago, representing an earnings surprise of -58.93% [1] - The company posted revenues of $376.36 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.72%, but up from $359.12 million year-over-year [2] - Fox Factory Holding shares have declined approximately 24.4% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.55 on revenues of $367 million, and for the current fiscal year, it is $1.73 on revenues of $1.48 billion [7] - The Automotive - Domestic industry, to which Fox Factory Holding belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - For the three months ended October 3, 2025, net sales increased by $17.3 million, or 4.8%, to $376.4 million compared to $359.1 million for the same period in 2024[164]. - Gross profit for the three months ended October 3, 2025, was $114.5 million, representing a gross margin of 30.4%, compared to $107.5 million and 29.9% for the same period in 2024[162]. - The company reported a net loss of $0.7 million for the three months ended October 3, 2025, compared to a net income of $4.8 million for the same period in 2024[162]. - Consolidated net sales for the nine months ended October 3, 2025 increased by $65.1 million, or 6.3%, to $1,106.2 million, driven by increased demand for aftermarket products and motorcycle business expansion[178]. - For the nine months ended October 3, 2025, the company reported a net loss of $257.7 million, a decrease of $264.4 million from a net income of $6.7 million for the same period in 2024, representing a change of (3,946.3)%[186]. Operating Expenses - Operating expenses for the three months ended October 3, 2025, totaled $99.4 million, up from $88.7 million in the same period in 2024[162]. - Total operating expenses for the three months ended October 3, 2025 were $99.4 million, an increase of $10.7 million, or 12.1%, driven by higher general and administrative, sales and marketing, and research and development expenses[166]. - Total operating expenses for the nine months ended October 3, 2025 were $558.1 million, a significant increase of $282.8 million, or 102.7%, primarily due to a goodwill impairment charge of $262.1 million[181]. Cost of Sales - The cost of sales as a percentage of net sales decreased to 69.6% for the three months ended October 3, 2025, from 70.1% for the same period in 2024[163]. - Cost of sales for the three months ended October 3, 2025 increased by $10.3 million, or 4.1%, to $261.9 million compared to the same period in the prior year, primarily due to increased sales and tariffs[165]. - Cost of sales for the nine months ended October 3, 2025 increased by $45.6 million, or 6.3%, to $765.1 million, with a gross margin decrease of 10 basis points to 30.8%[179]. Income and Loss - Income from operations decreased by $3.7 million, or 19.7%, to $15.1 million for the three months ended October 3, 2025 compared to the prior year[167]. - Loss from operations for the nine months ended October 3, 2025 was $217.0 million, a decrease of $263.3 million, or 568.7%, compared to the prior year[182]. - Net loss for the three months ended October 3, 2025 was $0.7 million, a decrease of $5.5 million, or 114.6%, from net income of $4.8 million in the same period last year[171]. Market Conditions - The company faces headwinds from high interest rates, high vehicle costs, and macro-economic conditions impacting industry and consumer demand[164]. - Interest expense for the three months ended October 3, 2025, was $13.9 million, slightly down from $14.2 million in the same period in 2024[162]. - Interest and other expense, net for the nine months ended October 3, 2025 decreased by $1.7 million, or 4.2%, to $39.2 million, attributed to foreign currency exchange rates[183]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended October 3, 2025, was $42.8 million, a decrease from $50.1 million in the same period of 2024[195]. - The company used $27.2 million in investing activities for property and equipment additions during the nine months ended October 3, 2025, compared to $42.5 million in the same period of 2024[199]. - As of October 3, 2025, the company held $12.7 million of its $65.4 million cash and cash equivalents in accounts of subsidiaries outside the U.S.[194]. Future Outlook - The company expects that cash on hand, cash flows from operations, and availability under its Credit Agreement will be sufficient to fund operations during the next 12 months[196]. - Interest rate volatility may impact borrowing costs and overall financial condition, with significant increases potentially leading to higher interest expenses on variable-rate debt[213]. - The company utilizes interest rate swaps to manage exposure to interest rate fluctuations, enhancing predictability[213]. - There have been no material changes to the disclosures regarding market risk since the last annual report filed with the SEC[214].

Financial Data and Key Metrics Changes - The company reported net sales of $376.4 million for Q3 2025, representing a 5% increase year-over-year [6] - Adjusted EBITDA for the quarter was $44.4 million, up 6% year-over-year [6][27] - Gross margin improved to 30.4% from 29.9% in the same quarter last year, driven by favorable shifts in product line mix [25] - Net loss for Q3 was $0.6 million, or $0.02 loss per diluted share, compared to net income of $4.8 million, or $0.11 per diluted share in the same period last year [27] Business Line Data and Key Metrics Changes - The PVG segment achieved net sales of $125.9 million, a 15% growth year-over-year [13] - AAG reported net sales of $117.8 million, up 17.4% year-over-year [16] - SSG segment saw net sales of $132.7 million, down 11% year-over-year [18] Market Data and Key Metrics Changes - The automotive OE business remained stable, benefiting from premium vehicle SKUs, despite supply chain disruptions [13] - The power sports business is stabilizing as dealer inventories improve, with growth from new customers offsetting softness in off-road products [13] - The bike business is facing challenges due to labor issues and moderated OEM purchases, but new product launches are performing well [19] Company Strategy and Development Direction - The company is focused on strategic customer engagement and performance-defining innovation, with significant investments in product launches [9][32] - A cost reduction target of $25 million is on track for the fiscal year, with facility consolidations completed [11][28] - The second phase of optimization strategy is being prepared for 2026, focusing on maximizing efficiencies and improving balance sheet leverage [12][31] Management's Comments on Operating Environment and Future Outlook - Management noted an increasingly challenging macroeconomic environment, with elevated interest rates and a softening labor market impacting consumer spending [22][23] - The company is redoubling its focus on margin enhancement and prudent capital spending to drive free cash flow [23] - Despite challenges, management remains confident in the strategy to deliver premium performance products and the operational foundation for future growth [23][32] Other Important Information - The company has reduced total debt by $17.4 million year-to-date, maintaining a strong liquidity position [28] - Adjusted net income for Q3 was $9.9 million, or $0.23 per diluted share, down from $14.8 million, or $0.35 per diluted share in the prior year [27] Q&A Session Summary Question: Can you quantify the year-over-year revenue progression for SSG on the bike side? - Management indicated that the first half of 2025 had higher revenue due to new product launches, with a focus on retail inventory management for Q4 [34][35] Question: Can you quantify the impact of the aluminum supplier fire on Q4 revenue guidance? - Management acknowledged that the fire is a significant issue affecting both PVG and AAG, with expectations for resolution by mid-Q1 [42] Question: What are the expectations for growth in 2026 given the challenging macro environment? - Management emphasized the importance of delivering premium performance products and optimizing business operations to ensure profitability, despite external challenges [46]

Financial Performance - Net sales for Q3 fiscal 2025 increased by 4.8% year-over-year to $376.4 million, with year-to-date net sales up 6.3%[4] - AAG net sales rose by 17.4% to $117.8 million, while PVG net sales increased by 15.1% to $125.9 million; SSG net sales decreased by 11.2% to $132.7 million[5] - Adjusted EBITDA for Q3 fiscal 2025 was $44.4 million, reflecting a 5.7% year-over-year increase, with an adjusted EBITDA margin of 11.8%[10] - The company reported a net loss of $0.6 million, or $0.02 per diluted share, compared to a net income of $4.8 million, or $0.11 per diluted share, in the prior year quarter[9] - Gross margin improved by 50 basis points year-over-year to 30.4%, driven by favorable shifts in product line mix[6] - Total operating expenses for Q3 fiscal 2025 were $99.4 million, or 26.4% of net sales, up from $88.7 million, or 24.7% of net sales in Q3 fiscal 2024[7] - For Q4 fiscal 2025, net sales are expected to be in the range of $340 million to $370 million, with adjusted earnings per diluted share projected between $0.05 and $0.25[18] - For fiscal year 2025, net sales are now expected to be between $1.445 billion and $1.475 billion, with adjusted earnings per diluted share in the range of $0.92 to $1.12[18] Balance Sheet and Cash Flow - Total current assets as of October 3, 2025, were $758,814 thousand, an increase from $727,680 thousand as of January 3, 2025[29] - The company's total liabilities decreased slightly to $1,019,100 thousand as of October 3, 2025, from $1,033,644 thousand as of January 3, 2025[29] - Cash and cash equivalents decreased to $65,372 thousand as of October 3, 2025, down from $71,674 thousand as of January 3, 2025[29] - The company reported net cash provided by operating activities of $42,766 thousand for the nine months ended October 3, 2025, compared to $50,111 thousand for the same period last year[33] Operational Insights - Operating expenses for the three months ended October 3, 2025, totaled $99,351 thousand, compared to $88,677 thousand for the same period last year, indicating an increase of 11.9%[31] - The adjusted operating expense for the three months ended October 3, 2025, was $85,671 thousand, compared to $75,760 thousand for the same period in 2024, reflecting an increase of 13.5%[46] - The company reported a goodwill impairment of $262,129 thousand for the nine months ended October 3, 2025[40] Market Outlook and Risks - The company anticipates a challenging macroeconomic environment for fiscal year 2026, impacting consumer spending and business investment[19] - The company emphasizes that forward-looking statements regarding future performance and financial results are subject to significant uncertainties and should not be overly relied upon[49] - Key risks include supply chain disruptions, ability to maintain profitability, and adapting to changes in tax laws and international trade policies[49] - The company acknowledges potential impacts from global events, such as the Russia-Ukraine conflict and inflation, on its operations and market conditions[49] - The company is cautious about its international growth and the potential for strategic acquisitions[49] Product Development and Brand Strategy - The company aims to improve operating efficiencies and expects future sales growth, although specific figures are not provided[49] - There is a focus on developing new and innovative products to expand into new categories and end-markets[49] - The ability to maintain relationships with professional athletes and race teams is crucial for the company's brand image[49] - The company is monitoring consumer preferences and competition in the performance-defining products market[49] - Legal and regulatory developments, including environmental regulations, are highlighted as significant factors affecting the company's operations[49]

Core Insights - Fox Factory Holding Corp. reported a net sales growth of 5% year-over-year for the third quarter of fiscal 2025, reaching $376.4 million, driven by strong performance in the Aftermarket Applications Group (AAG) and Powered Vehicles Group (PVG) [3][4] - The company faced challenges in the Specialty Sports Group (SSG), which saw an 11.2% decrease in net sales due to inventory management by OEMs and distributors [3][4] - Adjusted EBITDA increased by 5.7% year-over-year to $44.4 million, with an adjusted EBITDA margin of 11.8% [6][10] Financial Performance - Net sales for Q3 fiscal 2025 were $376.4 million, up from $359.1 million in Q3 fiscal 2024, reflecting a 4.8% increase [4][6] - AAG net sales increased by 17.4% to $117.8 million, while PVG net sales rose by 15.1% to $125.9 million [4][6] - SSG net sales decreased by 11.2% to $132.7 million, primarily due to reduced inventory levels in response to economic conditions [4][6] Profitability Metrics - Gross margin improved to 30.4% in Q3 fiscal 2025, compared to 29.9% in Q3 fiscal 2024, driven by favorable product mix [5][6] - Total operating expenses increased to $99.4 million, or 26.4% of net sales, compared to $88.7 million, or 24.7% of net sales in the prior year [6][7] - The company reported a net loss of $0.6 million, or $0.02 per diluted share, compared to a net income of $4.8 million, or $0.11 per diluted share, in the prior year quarter [6][9] Year-to-Date Results - For the nine months ended October 3, 2025, net sales were $1,106.2 million, a 6.3% increase compared to the same period in the previous year [11][14] - AAG net sales increased by 11.2% to $343.8 million, while PVG net sales rose by 7.6% to $371.5 million [11][14] - The company reported a net loss of $257.6 million for the nine months, compared to a net income of $6.7 million in the prior year [14] Balance Sheet Overview - As of October 3, 2025, cash and cash equivalents were $65.4 million, down from $71.7 million at the beginning of the year [16] - Total debt decreased to $687.7 million from $705.1 million, reflecting efforts to strengthen the balance sheet [16] - Goodwill decreased significantly to $378.9 million due to a non-cash impairment charge related to adverse changes in tariff policies [16] Outlook - The company updated its fourth quarter fiscal 2025 net sales expectations to a range of $340 million to $370 million and adjusted earnings per diluted share to a range of $0.05 to $0.25 [17] - For fiscal year 2025, net sales are expected to be between $1.445 billion and $1.475 billion, with adjusted earnings per diluted share projected between $0.92 and $1.12 [17] - The macroeconomic environment for fiscal year 2026 is anticipated to be challenging, with elevated interest rates and a softening labor market impacting consumer spending [18][19]

Core Insights - FOX introduces Live Valve, an advanced semi-active suspension system for trucks and Jeeps, enhancing vehicle handling and driver comfort [1][2][8] Product Features - Live Valve adapts suspension in real-time by sensing terrain and driver inputs hundreds of times per second, providing optimal suspension tuning [2][8] - The system utilizes an Inertial Measurement Unit (IMU) to monitor vehicle dynamics such as pitch, yaw, and roll, along with other vehicle data [4] - The Electronic Controller Unit (ECU) employs FOX's proprietary Live IQ algorithm to calculate precise damping forces for each wheel in fractions of a second [5] User Control and Experience - Drivers can select from three ride modes—On-Road, Off-Road, and Custom—using the in-cabin Live Valve Mode Selector, with further tuning options available [6] - The FOX Connect App enhances the driving experience by allowing users to monitor system performance, record telemetry, and receive over-the-air updates [7] Company Overview - Fox Factory Holding Corp. is a leader in designing and manufacturing high-performance products for specialty sports and vehicles, with a focus on innovation [9][10] - The company supplies shocks and suspension components to major vehicle manufacturers and has a strong presence in the aftermarket through various distribution channels [10]

Core Insights - Fox Factory Holding Corp. will announce its third-quarter results for the period ending October 3, 2025, on November 6, 2025, after market close [1] - A conference call with the executive management team will take place on the same day at 4:30 p.m. ET to discuss the results [2] Company Overview - Fox Factory Holding Corp. is a global leader in designing, engineering, and manufacturing premium products for specialty sports and vehicles, including shocks and suspension systems [3] - The company’s brand portfolio includes FOX, Marucci, and Method Race Wheels, known for innovation and performance trusted by professional athletes and enthusiasts [3] - Fox Factory integrates engineering and manufacturing expertise through acquisitions to diversify its product offerings beyond its core shock and suspension segment [3] - The company also provides aftermarket products through a global network of retailers and direct-to-consumer channels [3]