IN BRIEF
On 5 November, Fox Factory published its results for the third quarter of 2026: $338.4 million in revenue, down 10.1% year on year. Its Specialty Sports Group segment, the one that includes cycling, fell 14.4% to $113.6 million, owing to the divestment of Marucci and destocking in its bike business. The net loss reached $109.6 million, including a $121.3 million loss on divestitures. For the full year, the group is targeting between $1.35 and $1.38 billion in sales.
| Q3 2026 revenue | 338,4 M$ (−10,1 %) |
| Specialty Sports Group (cycling) | $113.6M, versus $132.7M (−14.4%) |
| Net loss | 109,6 M$ |
| Adjusted EBITDA | $50.4M, versus $44.4M |
| Inventory at 2 October | $334.3M, versus $388.6M at 2 January |
| 2026 sales guidance | $1.35 to $1.38B |
Above all, this was the quarter of a sale: on 25 September Fox Factory completed the divestment of Marucci Sports, and the proceeds went straight to paying down debt. The figures of the group, based in Duluth, Georgia, should therefore be read with a scope that changed along the way.
At Fox Factory, cycling pays the price of destocking
The Specialty Sports Group went from $132.7 million to $113.6 million in sales, a drop of $19.1 million. Marucci still accounted for about $33.0 million of it, compared with about $49.2 million a year earlier. The rest of the decline comes down to order timing and channel destocking in the bike business, in response to the general economic environment.
Over nine months, the segment fell from $390.9 million to $348.5 million, for the same reasons. Another of the group’s segments, the Aftermarket Applications Group (AAG), lost $24.0 million in the quarter, or 20.4%, while the Powered Vehicles Group (PVG) grew by $5.1 million, or 4.1%, partly offsetting the decline, the group says.
A loss deepened by divestitures
Net loss attributable to shareholders reached $109.6 million, or $2.61 per diluted share, compared with a loss of $0.6 million a year earlier. It includes a $121.3 million loss on divestitures.
Operations held up better: adjusted EBITDA rose to $50.4 million, from $44.4 million, but it includes about $12 million in IEEPA tariff refunds. Gross margin went from 30.4% to 31.5%, an increase the group attributes mainly to the IEEPA tariff refunds, partly offset by changes in product mix and higher external costs (freight, raw materials, fuel). Inventory fell from $388.6 million at 2 January to $334.3 million at 2 October, a decrease the group attributes mostly to the inventory divested with Marucci, partly offset by a build-up of stock for future demand, and the net leverage ratio was brought down to about 2.4.
An interim chief executive and narrower guidance
“This has been a quarter of significant change for FOX, and we have taken decisive steps to position the Company for improved execution,” says Doug Grimm, interim chief executive officer. On Marucci, he adds: “The divestment of Marucci simplified our portfolio, increased our focus on our core product offerings and allowed us to substantially reduce our debt.”
The group has updated its fourth-quarter guidance: between $287 million and $313 million in sales, and adjusted EBITDA of $25 million to $30 million. For full-year 2026, it expects between $1.35 and $1.38 billion in revenue, and has narrowed its adjusted EBITDA range to $143 million to $148 million, excluding about $14 million in IEEPA refunds received in the second and third quarters.
