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Jul 04, 2025
Fox Q2 2025 Earnings Report
Fox reported its second fiscal quarter 2025 financial results, showing growth in net sales across all segments and improved adjusted EBITDA margin.
Key Takeaways
Fox Factory Holding Corp. delivered significant progress in the second quarter of fiscal 2025 with net sales of $374.9 million, an increase of 7.6% year-over-year. The growth was observed across all three segments, both sequentially and year-over-year, accompanied by continued improvement in adjusted EBITDA margin. Despite challenges like shifts in product mix and tariffs impacting gross margin, the company's operational improvements and strategic cost management initiatives yielded positive results on the bottom line.
Net sales for Q2 2025 reached $374.9 million, a 7.6% increase compared to Q2 2024.
All three segments (Specialty Sports Group, Aftermarket Applications Group, and Powered Vehicles Group) showed sequential and year-over-year growth.
Adjusted EBITDA improved to $49.3 million, with adjusted EBITDA margin increasing to 13.1% from 12.7% in the prior year.
Net income attributable to FOX stockholders was $2.7 million, with diluted EPS of $0.07, while adjusted diluted EPS was $0.40.
Revenue by Segment
Forward Guidance
For the third quarter of fiscal 2025, the company expects net sales between $370 million and $390 million and adjusted earnings per diluted share between $0.45 and $0.65. For the full fiscal year 2025, net sales are projected to be in the range of $1.45 billion to $1.51 billion, with adjusted earnings per diluted share between $1.60 and $2.00. The full year adjusted tax rate is expected to be between 15% and 18%.
Positive Outlook
- Expected net sales growth for Q3 2025 and full fiscal year 2025.
- Anticipated increase in adjusted earnings per diluted share for Q3 2025 and full fiscal year 2025.
- Company has identified countermeasures to partially offset increased tariff impacts.
- Believes it can absorb the unmitigated component of tariff expense in its updated guidance.
- Focus on operational excellence and innovation-led growth to restore industry-leading profitability.
Challenges Ahead
- Impact of tariff policies on demand remains uncertain.
- New and expanded tariffs are expected to continue to pose significant challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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