Fox Factory Holding Corp.

Total consolidated net sales were $368.7 million, up 3.9% year over year. Gross margin was 28.9% versus 30.9% a year ago, and adjusted EBITDA was $35.7 million versus $39.6 million last year. Adjusted net income was $7.4 million, or $0.18 per diluted share, versus $9.8 million, or $0.23 per diluted share last year. For full-year 2026, the company reaffirmed sales guidance of $1.328 billion to $1.416 billion and adjusted EBITDA guidance of $174 million to $203 million, with about 200 basis points of EBITDA margin improvement at the midpoint versus 2025. For Q2, it guided to sales of $343 million to $365 million and adjusted EBITDA of $32 million to $40 million.

Mike Dennison emphasized that the February plan is “landing” as expected, with Phase 1 carryover flowing through, Phase 2 on schedule, and the Phoenix divestiture completed. His tone was confident but guarded: he repeatedly said Fox is not relying on end-market recovery or tariff relief in 2026 and is focused on what it can control, especially cost reduction, portfolio tightening, and operational discipline. He also highlighted dealer expansion, OEM partnership models in upfit, and new customer wins in bike and soft goods as longer-term growth drivers.

Dennis Schemm walked through the quarter’s key metrics: revenue of $368.7 million, gross margin of 28.9%, adjusted EBITDA of $35.7 million, adjusted EBITDA margin of 9.7%, and adjusted EPS of $0.18. He said adjusted operating expenses were $85.5 million, or 23.2% of sales, down from 23.8% a year ago, and debt ended the quarter at $688.2 million after rising about $15 million sequentially due to working capital timing. He noted capex was $5.4 million, or about 1.5% of revenue, below the full-year target of about 2%, and said the company recently amended its credit agreement to add flexibility and covenant headroom. On tariffs, he said the earlier $15 million net headwind remains concentrated in the first half, but the new Section 232 framework is approximately neutral to the business in 2026 excluding Marzocchi.

Analysts pressed on whether Fox was seeing any consumer shift from elevated fuel prices; management said the premium automotive customer has not shown a material demand change, but higher fuel and interest rates can actually support aftermarket upgrades because consumers keep existing vehicles longer. Questions also focused on powersports tariffs and demand, and management said channel rebalancing is improving, with diversification across OEMs helping offset mix swings. On margins, management said the full-year improvement path relies on better AAG execution, PVD improvements, Marzocchi product launches, and cost savings layering in through the year. Analysts also asked about the upfit partnership model and tariff math; management described it as a new OEM-driven channel that lowers SG&A and improves forecasting, while saying tariff relief from the new framework should be modest and likely show up late in the year.