Fox Factory Outlines Profit Optimization Plan for 2026

Company to divest non-core businesses, streamline operations, and target $50 million in savings

Published on Feb. 26, 2026

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Fox Factory (NASDAQ:FOXF) used its fourth-quarter 2025 earnings call to outline a multi-phase plan aimed at rebuilding profitability in 2026, even as the company anticipates a lower revenue base tied to divestitures, product line rationalization, and a modestly softer market environment.

Why it matters

As one of the leading manufacturers of high-performance suspension systems, Fox Factory's profitability and operational efficiency are crucial for its long-term success in the competitive powersports and bicycle markets. The company's strategic shift to focus on its core, higher-margin businesses could help it weather any near-term headwinds and position it for stronger financial performance in the future.

The details

Fox Factory's CEO Mike Dennison outlined a two-phase profit optimization plan, with Phase One already completed and delivering $25 million in savings. Phase Two will involve exiting non-core, low-margin businesses, improving supply chain and material cost productivity, and reducing operating expenses across sales, marketing, and G&A. In aggregate, the company is targeting approximately $50 million in incremental realized savings in fiscal 2026. Additionally, Fox Factory plans to reduce capital spending and establish a transformation committee focused on operational excellence and margin improvement.

  • Fox Factory completed its Phase One profit optimization initiative on time and on target in 2025.
  • The company expects to divest its Phoenix, Arizona operations by the end of the first quarter of 2026.

The players

Mike Dennison

Chief Executive Officer of Fox Factory.

Dennis Schemm

Chief Financial Officer of Fox Factory.

Fox Factory

An American manufacturer of high-performance suspension systems, shock absorbers, and related components for powersports, light-vehicle, and mountain-bike applications.

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What they’re saying

“Revenue growth alone is not the objective and that the company is moving with urgency to close the profitability gap.”

— Mike Dennison, Chief Executive Officer (marketbeat.com)

“Margin performance was not where it needs to be.”

— Mike Dennison, Chief Executive Officer (marketbeat.com)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Fox Factory's strategic shift to focus on its core, higher-margin businesses and streamline its operations could help the company improve its profitability and position it for stronger financial performance in the future, despite near-term headwinds and a slightly softer market environment.