Description

Fox Factory’s $1.47 Billion Growth Push — Can Margins Finally Catch Up?

Fox Factory Holding Corp. reported second quarter fiscal 2026 results with consolidated revenue of $358.1 million, reaching the high end of management’s guidance but reflecting a 4.5% year-over-year decline and a 2.9% sequential decrease. The sequential revenue dip was anticipated, attributed primarily to portfolio optimization after the Phoenix operations divestiture, shipment timing effects, and a continued aluminum supply disruption impacting Ford F-150 volumes. Despite these headwinds, the company expressed confidence in a revenue growth trajectory returning in the back half of 2026 and into 2027, bolstered by continued investment in research and development and new product introductions. Adjusted EBITDA reached $45.5 million, exceeding the high end of the guidance range by about $5 million, with margins improving sequentially by approximately 250 basis points (excluding a $2 million tariff refund). However, gross margin contracted slightly to 30.6% from 31.