Core Viewpoint - Fox Factory Holding (FOXF) reported a revenue increase of 6.1% year-over-year for the quarter ended December 2024, with a revenue of $352.84 million, surpassing the Zacks Consensus Estimate by 11.63% [1] Financial Performance - Earnings per share (EPS) for the quarter was $0.31, down from $0.48 in the same quarter last year, but above the consensus estimate of $0.29, resulting in an EPS surprise of 6.90% [1] - The company’s stock has returned -6.3% over the past month, compared to a -2.2% change in the Zacks S&P 500 composite [3] Segment Performance - Net Sales for Aftermarket Applications Group reached $112.19 million, exceeding the average estimate of $96.40 million [4] - Net Sales for Powered Vehicles Group was $116.16 million, compared to the average estimate of $93.90 million, reflecting a year-over-year decline of 1.9% [4] - Net Sales for Specialty Sports Group amounted to $124.49 million, slightly above the estimated $124.20 million, showing a significant year-over-year increase of 33.3% [4]

Group 1 - Fox Factory Holding (FOXF) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, but down from $0.48 per share a year ago, representing an earnings surprise of 6.90% [1] - The company achieved revenues of $352.84 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 11.63% and up from $332.5 million year-over-year [2] - Over the last four quarters, Fox Factory Holding has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2 - The stock has underperformed, losing about 13.6% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.19 on revenues of $324.18 million, and for the current fiscal year, it is $1.94 on revenues of $1.41 billion [7] - The Zacks Industry Rank for Automotive - Domestic is currently in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 3, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36040 Fox Factory Holding Corp. (Exact Name of Registrant as Specified in its Charter) Delaware 26-1647258 (State or ...

Exhibit 99.1 Fox Factory Holding Corp. Reports Fourth Quarter Fiscal 2024 Financial Results DULUTH, Georgia, February 27, 2025 - Fox Factory Holding Corp. (NASDAQ: FOXF) ("FOX" or the "Company"), a premium brand and a global leader in the design, engineering and manufacturing of performance-defining products and systems for customers worldwide, today reported financial results for the fourth fiscal quarter ended January 3, 2025. Fourth Quarter Fiscal 2024 Highlights 2 Management Commentary Mike Dennison, FO ...

Core Viewpoint - Fox Factory Holding Corp. reported financial results for the fourth fiscal quarter ended January 3, 2025, highlighting a mixed performance across its segments amid challenging market conditions [1][3]. Financial Performance - Net sales for Q4 fiscal 2024 were $352.8 million, a 6.1% increase from $332.5 million in Q4 fiscal 2023, driven by a 33.3% increase in Specialty Sports Group (SSG) sales [4][6]. - The SSG segment's sales rose from $93.4 million to $124.5 million, largely due to the acquisition of Marucci, which contributed $41.5 million in sales for the full quarter [4][11]. - Aftermarket Applications Group (AAG) sales decreased by 7.1% to $112.2 million, while Powered Vehicles Group (PVG) sales fell by 1.8% to $116.2 million due to lower industry demand [4][11]. Margins and Earnings - Gross margin for Q4 fiscal 2024 was 28.9%, up 120 basis points from 27.7% in Q4 fiscal 2023, primarily due to the amortization of acquired inventory valuation markup from the Marucci acquisition [5][6]. - Adjusted gross margin increased by 20 basis points to 29.2% compared to the prior year [5][6]. - The company reported a net loss of $0.1 million for Q4 fiscal 2024, compared to a net income of $4.1 million in the same period last year, with adjusted earnings per diluted share at $0.31 [9][14]. Operating Expenses - Total operating expenses for Q4 fiscal 2024 were $90.6 million, or 25.7% of net sales, compared to $81.0 million, or 24.4% of net sales in Q4 fiscal 2023 [7][13]. - Adjusted operating expenses were $76.4 million, or 21.7% of net sales, up from $68.5 million, or 20.6% of net sales in the prior year [7][13]. Yearly Overview - For the fiscal year ended January 3, 2025, net sales were $1,393.9 million, a decrease of 4.8% compared to fiscal 2023, with significant declines in AAG and PVG sales [11][14]. - Gross margin for fiscal 2024 was 30.4%, down 130 basis points from 31.7% in fiscal 2023, attributed to shifts in product line mix and operating leverage on lower volume [12][14]. - Adjusted EBITDA for fiscal 2024 decreased to $167.0 million, with an adjusted EBITDA margin of 12.0%, down from 17.8% in fiscal 2023 [15][15]. Balance Sheet and Cash Flow - As of January 3, 2025, the company had cash and cash equivalents of $71.7 million, down from $83.6 million at the end of the previous quarter, with total debt reduced to $705.1 million [17][17]. - Working capital improvements allowed the company to pay down $63 million in debt during Q4 fiscal 2024 [3][17]. Guidance - For Q1 fiscal 2025, the company expects net sales between $320 million and $350 million, with adjusted earnings per diluted share ranging from $0.12 to $0.32 [18][19]. - For the full fiscal year 2025, net sales are projected to be between $1.385 billion and $1.485 billion, with adjusted earnings per diluted share expected to range from $1.60 to $2.60 [18][19].

Core Viewpoint - Fox Factory Holding Corp. will announce its fourth-quarter results for the period ending January 3, 2025, on February 27, 2025, after market close [1] Company Overview - Fox Factory Holding Corp. is a global leader in the design, engineering, and manufacturing of premium products for specialty sports and on and off-road vehicles [3] - The company offers a portfolio of brands, including FOX, Marucci, and Method Race Wheels, known for their championship-level performance and innovation [3] - Fox Factory is a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle original equipment manufacturers, as well as premium baseball and softball gear [3] - The company diversifies its product offerings by acquiring complementary businesses, enhancing its engineering and manufacturing capabilities [3] - Fox Factory also provides products in the aftermarket through a global network of retailers, distributors, and direct-to-consumer channels [3] Conference Call Details - A conference call will be held on February 27, 2025, at 4:30 p.m. ET to discuss the fourth-quarter results, which will be available live on the company's website and archived for one year [2]

Core Insights - Fox Factory Holding (FOXF) reported revenue of $359.12 million for Q3 2024, an 8.5% year-over-year increase, but fell short of the Zacks Consensus Estimate of $366.51 million by -2.02% [1] - The company's EPS for the quarter was $0.35, down from $1.05 a year ago, and also missed the consensus estimate of $0.42 by -16.67% [1] Revenue Performance - Net Sales for the Aftermarket Applications Group were $100.28 million, below the average estimate of $115.80 million [3] - Net Sales for the Powered Vehicles Group were $109.34 million, compared to the estimated $113.95 million, reflecting a year-over-year decline of -11.2% [3] - Net Sales for the Specialty Sports Group reached $149.50 million, exceeding the average estimate of $140.80 million, with a significant year-over-year increase of +107.6% [3] Stock Performance - Over the past month, shares of Fox Factory Holding have declined by -8.5%, while the Zacks S&P 500 composite decreased by -1% [4] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [4]

Financial Data and Key Metrics Changes - Total consolidated net sales for Q3 2024 were $359.1 million, an increase of 8.5% compared to $331.1 million in Q3 2023, driven by the Marucci acquisition and strength in the bike business [44] - Gross margin decreased to 29.9% in Q3 2024 from 32.4% in the same quarter last year, attributed to shifts in product line mix and reduced operating leverage on lower volumes [45] - Net income for Q3 2024 was $4.8 million or $0.11 per diluted share, down from $35.3 million or $0.83 per diluted share in Q3 2023 [47] Business Line Data and Key Metrics Changes - In the Powered Vehicle Group (PVG), net sales were $109 million, down from $123 million in the prior year quarter, reflecting reduced demand from OEM partners [20] - The Aftermarket Applications Group (AAG) reported net sales of $100 million, compared to $136 million in the prior year quarter, impacted by a leadership transition and inventory optimization efforts [27] - The Specialty Sports Group (SSG) saw net sales of $150 million, up from $72 million last year, primarily due to the inclusion of Marucci and growth in the bike business [33] Market Data and Key Metrics Changes - The automotive sector experienced a significant de-commitment from top OEM customers, resulting in a 19.5% drop in overall product sector within the quarter [22] - The power sports market faced challenges as OEM partners managed production below retail demand, consistent with previous quarters [23] - The European market showed relative strength due to better inventory positioning, while the U.S. market is progressing towards stabilization [36] Company Strategy and Development Direction - The company is focusing on four key initiatives: simplifying and consolidating its footprint, reducing non-performing products, reducing inventory, and cutting costs to improve margins [16] - Strategic expansion into the entry premium bike segment and continued growth in the e-bike category are seen as transformative opportunities [35] - The company aims to build and diversify AAG through new partnerships and expanding product offerings to enhance brand accessibility [30] Management's Comments on Operating Environment and Future Outlook - Management noted that ongoing quality issues and model year changeovers at automotive OEM partners have impacted chassis mix and availability, but these issues are beginning to abate [10][12] - The outlook for Q4 is tempered due to ongoing challenges in the retail environment, with expectations for flat performance in both bike and Marucci segments [52][54] - Management emphasized the importance of controlling costs and investing in innovation to drive future growth despite current market challenges [42][58] Other Important Information - The company executed three interest rate swaps to fix interest expenses for $400 million of its debt, reducing interest expense by $102,000 in Q3 [50] - The company is prioritizing debt paydown, having paid down an additional $25 million since the end of the quarter [51] Q&A Session Summary Question: Main obstacles for the company - Management clarified that quality issues are primarily with automotive OEMs, not within the company, and emphasized that demand remains the greater concern moving into 2025 [62] Question: Outlook for the bike segment - Management indicated that while Q3 showed good sequential growth, Q4 is expected to be softer due to seasonality and ongoing inventory issues [64] Question: SSG margin performance - Management explained that increased spending in preparation for MLB launches impacted SSG margins, despite year-over-year sales growth [66] Question: Marucci growth expectations - Management expressed confidence in Marucci's potential for double-digit growth in 2025, driven by product launches and new partnerships [79] Question: Upfitting business and channel inventories - Management noted that dealer inventories vary by brand, with some brands performing well while others, like Jeep, require more work to clear inventory [82] Question: Pricing environment with OEMs - Management stated that while there are requests for better pricing terms, overall pricing power remains stable, with a focus on driving innovation to maintain margins [84]

Core Viewpoint - Fox Factory Holding (FOXF) reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.42 per share, and down from $1.05 per share a year ago, indicating a significant earnings surprise of -16.67% [1][2] Financial Performance - The company posted revenues of $359.12 million for the quarter ended September 2024, which was 2.02% below the Zacks Consensus Estimate, compared to $331.12 million in the same quarter last year [2] - Over the last four quarters, Fox Factory has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Fox Factory Holding shares have declined approximately 45.1% since the beginning of the year, contrasting with the S&P 500's gain of 21.9% [3] - The current Zacks Rank for the stock is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $383.5 million, and for the current fiscal year, it is $1.56 on revenues of $1.43 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock movements [6] Industry Context - The Automotive - Domestic industry, to which Fox Factory belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Sales Performance - For the three months ended September 27, 2024, net sales increased by $28.0 million, or 8.5%, to $359.1 million compared to $331.1 million for the same period in 2023[98]. - The increase in net sales was primarily due to $49.6 million in net sales from Marucci, acquired in November 2023, and a $27.9 million increase in bike sales[98]. - Specialty Sports Group net sales increased by $77.5 million, or 107.6%, primarily due to the inclusion of $49.6 million in net sales from Marucci, acquired in November 2023[113]. - Aftermarket Applications Group net sales decreased by $35.8 million, or 26.3%, due to lower upfitting sales and higher inventory levels at dealerships[112]. - Powered Vehicles Group net sales decreased by $60.3 million, or 14.9%, due to lower industry demand attributed to higher interest rates[128]. - Aftermarket Applications Group net sales decreased by $121.1 million, or 28.1%, driven by lower upfitting sales and higher inventory levels at dealerships[129]. - Specialty Sports Group net sales increased by $90.8 million, or 30.7%, primarily due to the inclusion of $150.8 million in net sales from Marucci[130]. - Consolidated net sales for the nine months ended September 27, 2024 were $1,041.1 million, a decrease of $90.6 million or 8.0% compared to $1,131.7 million for the same period in 2023[127]. Financial Performance - Cost of sales for the three months ended September 27, 2024, increased by $27.7 million, or 12.4%, to $251.6 million compared to $223.9 million for the same period in 2023[99]. - Gross margin decreased by 250 basis points to 29.9% for the three months ended September 27, 2024, compared to the same prior fiscal year period[99]. - Operating expenses for the three months ended September 27, 2024, totaled $65.9 million, compared to $65.0 million for the same period in 2023[96]. - Total operating expenses for the three months ended September 27, 2024 were $88.7 million, an increase of $22.8 million or 34.6% compared to $65.9 million for the three months ended September 29, 2023[100]. - Income from operations for the three months ended September 27, 2024, was $41.4 million, compared to $41.0 million for the same period in 2023[96]. - Income from operations decreased by $22.6 million, or 54.6%, to $18.8 million for the three months ended September 27, 2024, compared to $41.4 million for the same period in 2023[102]. - Net income for the three months ended September 27, 2024, was $35.3 million, compared to $35.0 million for the same period in 2023[96]. - Net income for the three months ended September 27, 2024 was $4.8 million, a decrease of $30.5 million or 86.4% from $35.3 million for the three months ended September 29, 2023[107]. - Total operating expenses for the nine months ended September 27, 2024 were $275.3 million, an increase of $51.6 million or 23.1% compared to $223.7 million for the nine months ended September 29, 2023[119]. - Net income for the nine months ended September 27, 2024 decreased by $110.1 million, or 94.3%, to $6.7 million from $116.8 million for the same period in 2023[125]. Research and Development - Research and development expenses increased to $8.9 million for the three months ended September 27, 2024, compared to $7.4 million for the same period in 2023[96]. - Research and development expenses for the three months ended September 27, 2024 increased by $7.2 million, or 80.9%, primarily due to personnel investments and a state research and development tax credit[100]. Debt and Interest - Interest expense increased by $10.7 million, or 305.7%, due to additional debt and higher interest rates for the three months ended September 27, 2024[103]. - Interest and other expense, net for the nine months ended September 27, 2024 increased by $29.8 million to $40.9 million, compared to $11.1 million for the same period in 2023, with interest expense rising by $30.0 million to $41.4 million due to additional debt and higher interest rates[122]. - As of September 27, 2024, the weighted-average interest rate on outstanding borrowing was 6.30%[140]. - The Company entered into a new credit agreement on April 5, 2022, providing for revolving loans and letters of credit up to $650.0 million[140]. - On November 14, 2023, the Company amended the 2022 Credit Facility, securing an Incremental Term A Loan of $400.0 million and a Delayed Draw Term Loan of $200.0 million[140]. - The Incremental Term Loans are subject to quarterly amortization payments of principal at a rate of 5.00% per annum[140]. - The Company paid $10.1 million in debt issuance costs related to the Incremental Term Loans[140]. - On July 31, 2024, the Company entered into the Third Amendment to the Credit Facility to improve its covenant profile for greater flexibility[141]. - The 2022 Credit Facility is secured by substantially all of the Company's assets and requires compliance with customary financial ratios[141]. - The Company was in compliance with the covenants as of September 27, 2024[141]. Economic Factors - The company continues to face headwinds from ongoing channel inventory recalibration and lower end consumer demand despite improved bike sales[98]. - Future growth may be impacted by macroeconomic factors, including inflation and interest rates, as well as supply chain dependencies[91]. - Significant increases in inflation could adversely impact the Company's business and financial condition[143]. - There have been no material changes to the Company's cash requirements or market risk disclosures since the last Annual Report[142][144]. Cash Flow - Net cash provided by operating activities for the nine months ended September 27, 2024 was $50.1 million, a decrease from $126.7 million for the same period in 2023[135]. - Net cash used in investing activities for the nine months ended September 27, 2024 was $42.5 million, significantly lower than $165.4 million for the same period in 2023[138]. - Net cash used in financing activities for the nine months ended September 27, 2024 was $1.7 million, compared to net cash provided of $16.2 million for the same period in 2023[139].