Fox Factory posts $287M loss, unveils $40M cost plan

Goodwill impairments drove a $287M Q4 loss, while Fox targets $50M in 2026 savings and 200 bps margin gain with Phase 2 cost cuts and asset divestitures.

Published on Feb. 26, 2026

Got story updates? Submit your updates here. ›

Fox Factory Holding Corp. reported a $287 million net loss in Q4 2025 due to goodwill impairments, while announcing a new Phase 2 profit optimization plan targeting $40 million in additional savings for fiscal 2026. The company also expects to divest its Phoenix, Arizona AAG operations, including the Upfit UTV, Geiser, and Shock Therapy businesses, by the end of the first quarter of fiscal 2026.

Why it matters

Fox Factory has faced ongoing headwinds across its end markets, including high interest rates, high vehicle costs, and macroeconomic conditions impacting dealers and consumers. The company's comprehensive profit optimization efforts aim to restore historical adjusted EBITDA margins and accelerate its path to balance sheet improvement.

The details

Fox Factory's Q4 2025 net sales increased 2.3% year-over-year, with a 12.5% increase in Aftermarket Applications Group (AAG) net sales offset by a 5% decrease in Specialty Sports Group (SSG) net sales. Gross margin declined to 28.3% due to the unmitigated impact of tariffs and product mix shifts. The company recorded a $295 million goodwill impairment charge and other asset impairments, leading to a $287 million net loss for the quarter.

  • On July 4, Quinn allegedly dove onto the hood of a Waymo vehicle and covered sensors.
  • On July 29, Quinn allegedly damaged a Waymo's tires and driver's side mirror.
  • On August 11, Quinn allegedly stomped on a windshield while someone was inside.

The players

Fox Factory Holding Corp.

A global leader in the design, engineering, and manufacturing of premium products that deliver championship-level performance for specialty sports and on- and off-road vehicles.

Mike Dennison

Fox Factory's Chief Executive Officer.

Got photos? Submit your photos here. ›

What they’re saying

“Fiscal 2025 was a year of both challenges and meaningful progress for Fox Factory. Despite ongoing headwinds across our end markets, we delivered consolidated revenue growth while successfully executing our Phase 1 profit optimization plan, which yielded approximately $25 million in realized cost savings for the year and helped us mitigate the full effect of tariffs during the year.”

— Mike Dennison, Chief Executive Officer (stocktitan.net)

“We are taking comprehensive actions to restore our historical adjusted EBITDA margins in the mid-to-high teens and accelerate our path to balance sheet improvement. We are fundamentally repositioning Fox Factory by engineering a more efficient foundation so we can deliver greater operating leverage as growth returns to our end markets.”

— Mike Dennison, Chief Executive Officer (stocktitan.net)

What’s next

The company expects to divest its Phoenix, Arizona AAG operations, including the Upfit UTV, Geiser, and Shock Therapy businesses, by the end of the first quarter of fiscal 2026.

The takeaway

Fox Factory's comprehensive profit optimization efforts, including business line rationalization, supply chain and materials cost productivity, and operating expense reductions, aim to restore the company's historical adjusted EBITDA margins and improve its balance sheet, despite ongoing headwinds in its end markets.