Fox Factory (FOXF) Q4 2024 earnings summary

Executive summary

• Q4 net sales reached $352.8M, up 6.1% year-over-year, with gross margin at 28.9%, and progress on a $25M cost reduction initiative and $63M debt paydown in Q4.

• Full-year 2024 net sales were $1.39B, down 4.8% from 2023, with net income dropping to $6.6M from $120.8M.

• Adjusted EPS for Q4 was $0.31; full-year adjusted EPS was $1.33, both down from prior year periods.

• Focused on operational efficiency, product development, and strategic diversification across segments and geographies.

• Completed Colorado facility closure and initiated further footprint consolidation, with full benefits expected by 2026.

Financial highlights

• Q4 adjusted EBITDA was $40.4M (11.5% margin), up from $38.8M last year; full-year adjusted EBITDA was $167M (12.0% margin), down from $261M (17.8%) in 2023.

• Q4 net loss attributable to stockholders was $0.1M (zero per diluted share); full-year net income was $6.6M.

• Q4 adjusted gross margin was 29.2%, up 20 bps year-over-year; full-year adjusted gross margin was 30.8%, down 200 bps.

• Q4 adjusted operating expenses were $76.4M (21.7% of sales); full-year adjusted operating expenses were $310.9M (22.3%).

• Year-end cash was $71.7M; total debt was $705.1M.

Outlook and guidance

• FY25 net sales expected at $1.385B–$1.485B; adjusted EPS $1.60–$2.60; adjusted tax rate 15%–18%.

• Q1 FY25 guidance: net sales $320M–$350M, adjusted EPS $0.12–$0.32.

• Revenue and margin improvement expected in H2 2025 as cost reduction benefits materialize.

• Guidance excludes tariff impacts; cautious near-term outlook due to demand environment and ongoing tariff developments.