IN BRIEF
Mike Dennison is stepping down as CEO of Fox Factory, a role he had held since 2019, and is also leaving his seat on the board of directors. Independent director Douglas Grimm takes over as interim CEO from 16 October 2026 while a successor is recruited. In the same release, the group announced a third quarter below its expectations, with net sales of $336 million to $340 million, and lowered its 2026 sales guidance to $1.35 billion to $1.38 billion. Among the causes, the release cites, “to a lesser extent”, softer than expected bike sales, after Marucci Sports, divested at the end of September, a supply disruption in powered vehicles and challenges in the upfit business of the Aftermarket Applications Group.
Fox, the maker of forks and shocks, is changing its boss. In a release published on 16 October from Duluth, Georgia, Fox Factory announced both the departure of its CEO and preliminary quarterly results below its own guidance.
Fox Factory hands the interim role to a director from the automotive industry
Mike Dennison is stepping down as CEO and leaving his board seat. “It has been a privilege to lead FOX since 2019 and navigate periods of significant change in partnership with such a talented team,” he says in the release. Board Chair Jean Hlay thanks him for his contributions “over the last seven years” and says he “helped build FOX into a precision engineering company with strong brands and great products”.
The board has appointed Douglas Grimm, an independent director, in his place, effective 16 October 2026. The release credits him with more than 40 years of automotive and industrial experience: he was president and chief operating officer of Metaldyne Performance Group, a supplier of metal components for the automotive industry, president of Electrical Components International and founder of Grede Holdings. The release states that he is not a candidate for the permanent role, which the firm Heidrick & Struggles has been tasked with filling. He is stepping down from the audit committee, taken over by Alan Bazaar, but remains on the board. He sums up the group’s position as follows:
“FOX has earned its place as a leader in the powered vehicle and bike markets through an unwavering commitment to innovating performance-defining products for professional athletes and enthusiasts.”
Douglas Grimm, Interim CEO of Fox Factory
A quarter below guidance, with bikes a secondary cause
For the third quarter, Fox Factory reports preliminary net sales of $336 million to $340 million, against guidance of $355 million to $380 million. Adjusted EBITDA is expected between $38 million and $42 million, excluding around $12 million of IEEPA tariff refunds received during the period, against guidance of $46 million to $54 million.
The group primarily attributes the shortfall to Marucci Sports, whose sales and margins disappointed before its divestiture, completed on 25 September 2026. The release also cites lower than expected sales and margins in powered vehicles, following a supply disruption, related operating inefficiencies and an unfavourable mix, operating challenges in the upfit business of the Aftermarket Applications Group, and, “to a lesser extent”, softer than expected bike sales within its Specialty Sports Group division.
2026 guidance lowered
Fox Factory has cut its net sales guidance for fiscal 2026 to $1.35 billion to $1.38 billion, from $1.42 billion to $1.47 billion previously. The release states that around $63 million of this reduction relates to Marucci Sports, including around $50 million of fourth-quarter sales included in the previous guidance. Expected adjusted EBITDA moves to $140 million to $150 million excluding tariff refunds, from $176 million to $196 million, or $154 million to $164 million including them.
RTTNews reported on the day of the announcement that the shares had fallen more than 20% in pre-market trading, after closing at $18.50 the previous day. Full quarterly results will be presented during a conference call on 5 November 2026.
