Fox Factory Shares Plunge 11.3% on Weak Guidance

Analysts Divided on Whether to Buy or Sell the Stock

Published on Feb. 27, 2026

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Shares of Fox Factory Holding Corp. (NASDAQ:FOXF) fell 11.3% on Friday after the company reported a large GAAP impairment charge in Q4 that resulted in a massive earnings miss. The company also provided soft revenue guidance for fiscal year 2026, indicating growth will be muted in the near-term.

Why it matters

The sharp drop in Fox Factory's stock price highlights the challenges the company is facing as it navigates a shifting product portfolio and works to improve profitability. Investors will be closely watching to see if management can execute on its $50 million cost-savings plan and whether the underlying business can generate stronger sales growth.

The details

Fox Factory reported an operating loss of approximately $306 million and GAAP earnings per share of around -$6.86 in Q4 due to a material impairment charge. This led to a significant stock price decline, even though the company's adjusted revenue and earnings beat consensus estimates. Management also lowered its fiscal year 2026 revenue guidance to $1.3 billion to $1.4 billion, below the prior consensus of around $1.5 billion.

  • Fox Factory reported Q4 2025 results on February 26, 2026.
  • The company provided fiscal year 2026 revenue guidance on the earnings call.

The players

Fox Factory Holding Corp.

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

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What’s next

Investors will be watching to see if Fox Factory can execute on its cost-savings plan and whether the company's underlying business can generate stronger sales growth in the coming quarters.

The takeaway

Fox Factory's sharp stock decline highlights the challenges the company faces as it works to optimize its product portfolio and improve profitability. While the core business appears to be generating decent sales, the large impairment charge and soft guidance have raised concerns about the company's near-term outlook.