Fox Factory (FOXF) investor relations material

Executive summary

• Q2 2026 net sales were $358.1 million, down 4.5% year-over-year, with adjusted EBITDA of $45.5 million, exceeding guidance, and net income of $4.1 million; profit optimization initiatives delivered over $25 million in gross savings in H1.

• Revenue growth is expected to return, supported by R&D investments and portfolio optimization, with a positive outlook for the remainder of 2026 and into 2027.

• Net debt reduced by $9.1 million since year-end, with improved cash conversion cycle by 12 days year-over-year.

• Macro headwinds persist, including elevated steel, aluminum, freight, and fuel costs, but margin expansion efforts and cost savings are yielding results.

• For the first six months, net sales were $726.8 million, nearly flat year-over-year, with a net loss of $11.0 million, a significant improvement from a $257.0 million loss in the prior year.

Financial highlights

• Gross margin for Q2 was 30.6%, down from 31.2% year-over-year, mainly due to product mix and higher input costs.

• Adjusted operating expenses were $78.5 million (21.9% of sales), down from $83.5 million (22.3%) year-over-year; operating expenses decreased to $92.2 million (25.7% of sales).

• Adjusted net income was $15.5 million ($0.37 per diluted share), compared to $16.6 million ($0.40) last year; Q2 net income was $4.1 million.

• Adjusted EBITDA margin was 12.7% (12.2% excluding tariff refund), up 250–300 bps sequentially.

• For the first six months, adjusted EBITDA was $81.2 million and adjusted net income was $22.9 million.

Outlook and guidance

• Full-year net sales guidance raised to $1.42–$1.47 billion; adjusted EBITDA narrowed to $176–$196 million.

• Q3 net sales expected at $355–$380 million, adjusted EBITDA at $46–$54 million (13%–14% margin).

• Margin expansion in H2 expected from cost optimization, tariff anniversary, and pricing actions.

• Guidance assumes continued elevated commodity, freight, and fuel costs, and constrained Ford F-150 chassis availability.

• Management expects cash on hand, operating cash flows, and credit availability to be sufficient for operations over the next 12 months and beyond.