Fox Factory sees Q1 sales bump from increased demand in powersports segment

Fox Factory Holding Corp., maker of advanced suspension systems for powersports vehicles, released its first-quarter financial results for the period ending April 3, reporting a nearly 4% increase in net sales compared to the same period last year, primarily due to an increased demand in powersports.

Net sales for the first quarter of fiscal 2026 were $368.7 million, compared to $355 million during the same period last year, an increase of 3.9%. This increase reflects a $21.3 million increase in Powered Vehicles Group (PVG) net sales, and a $2.9 million increase in aftermarket sales, partially offset by a $10.5 million decrease in Specialty Sports Group net sales.

Although adjusted EBITDA was down from $39.6 million to $35.7 million, Mike Dennison, Fox’s CEO, says the first quarter resulted in both revenue and adjusted EBITDA reaching the high end of the company’s guidance range. He also says Fox is on track to deliver approximately $50 million in cost savings in 2026.

Fox’s increase in sales is mainly attributed to strengthening demand in powersports, momentum in the automotive aftermarket, and improved performance in its upfitting product lines and stable aftermarket product sales.

“The team is executing against the plan we laid out in February — taking cost out, sharpening the portfolio, and building resilience in an end-market environment that remains subdued. Phase 1 carryover benefits are flowing through as expected, Phase 2 is on schedule, and we are on track to deliver approximately $50 million in cost savings this year.” — Mike Dennison, CEO

Other financial highlights included total operating expenses of $100.4 million for the first quarter, compared to $360.3 million during Q1 of 2025. The 259.8 million decrease was driven primarily by a $262.1 million goodwill impairment recorded in the first quarter last year.

Outlook

For the second quarter of 2026, Fox expects net sales in the range of $343 million to $365 million, and adjusted EBITDA between $32 million and $40 million. For the full fiscal year 2026, Fox is reaffirming its previously issued guidance: Net sales in the range of $1.328 billion to $1.416 billion, and adjusted EBITDA in the range of $174 million to $203 million.