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]

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's portfolio includes brands such as FOX, Marucci, and Method Race Wheels, known for their championship-level performance [3] - Fox Factory is a direct supplier of shocks, suspension, and components to leading powered vehicle and bicycle original equipment manufacturers [3] Upcoming Financial Results - The company will announce its second-quarter results for the period ended July 4, 2025, on August 7, 2025, after market close [1] - A conference call with the executive management team will be held on the same day at 4:30 p.m. ET to discuss the results [2] - The conference call will be available for live streaming on the company's website and archived for one year [2] Business Strategy - Fox Factory aims to diversify its product offerings and increase market potential by acquiring complementary businesses [3] - The company provides products in the aftermarket through a global network of retailers and distributors, as well as direct-to-consumer channels [3] Communication and Disclosure - The company utilizes various means to announce material information, including SEC filings, press releases, public conference calls, and its investor relations website [5]